Sources:http://www.nhtsa.gov/About+NHTSA/Press+Releases/NHTSA+Data+Confirms+Traffic+Fatalities+Increased+In+2012http://www.iihs.org/iihs/sr/statusreport/article/49/1/1Insurance Information Institute, “Auto Crashes”, February 2014Gen Re Personal Umbrella Cause of Loss Study 2006-2010 (compared against prior study 2000-2005)http://www.iii.org/articles/cell-phones-and-driving.htmlhttp://www.cdc.gov/Motorvehiclesafety/Distracted_Driving/index.htmlhttp://www-nrd.nhtsa.dot.gov/Pubs/811719.pdfhttp://www.nhtsa.gov/About+NHTSA/Press+Releases/NHTSA+Data+Confirms+Traffic+Fatalities+Increased+In+2012http://www.claimsjournal.com/news/national/2014/03/05/245467.htmMed CPI from US Bureau of Labor Statistics, WC med severity from NCCI based on NCCI states Insurance Journal, “Rise in Auto Injury Medical Costs Tops Inflation While severity Declines”, March 7, 2014http://www-nrd.nhtsa.dot.gov/Pubs/811737.pdf

auto liability

Distracted pedestrians

driving

Technology and improved safety standards result

in fewer accidents.

2012 saw the first year-to-year increase in auto

fatalities since 2005.

Fatalities in motorcycle, pedestrian and drunk driving accidents have all increased.

Number of highway deaths over the past

five years are at historic lows.

Graduated driver’s license laws help to reduce

young driver crashes and deaths.

Percent growth of fatalities among motorcyclists, pedestrians and bicyclists

6.4%Increase in pedestrian

fatalities in the last three years.

7.1%Increase in motorcycle

fatalities in the last three years. Pedestrians and cyclists make up an increasing

proportion of deaths on U.S. roadways.

From 1997 to 2012, fatal crash rates fell

for older drivers.

3.3%

42%

32%22%

2003 2012

Injuries of cell phone-using pedestrians have skyrocketed over the past 10 years.

!Severity

Exposures

Frequency is down

distracted driving

pedestrians/cyclists/motorcyclists

rising medical costs

looking forward

and we expect to continue seeing larger losses in auto…

1 out of 4Number of vehicle crashes in which

driver distraction plays a part.

21%Drivers aged 15-19 involved

in fatal crashes were distracted by cell phones.

TextingImpacts visual, manual and

cognitive functions, making it the most disruptive distraction.

every dayMore than 9 people are killed and more than 1,000 people are injured

due to distracted driving.

© 2014 General Re Corporation

severity is up

More pedestrians distracted by electronics?

Smart cars, golf carts, motorcycles converging

with larger SUVs? Driverless cars, and assisted driving innovations lowering

frequency claims?

Leveraging analytics—future role of big data on driver information

exposures?

MEDICAL COST INFLATION AND AUTO SEVERITY HAVE BEEN TRENDING HIGHER THAN OVERALL CPI (YEAR OVER YEAR — 2007 – 2012)

Average annual growth for healthcare

Average annual growth for

overall inflation

3.6%2.2%

Average annual growth for auto

severity PIP

Average annual growth for auto

severity BI

8%4%