AUTO INSURERS AND THE AIRBAG: COMMENT

In an earlier volume of this Journal, Kneuper and Yandle (1994) write that auto insurers' intense legislative lobbying efforts for the automotive airbag should be viewed as an industry attempt to reduce uncertainty. With respect to uncertainty, two airbag attributes were said to be particularly attractive to insurers: their passivity and the reduced likelihood of severe injuries to the upper part of the body, particularly facial areas, which insurers have found expensive to settle. This paper analyzes insurance industry loss experiences on a vehicle line basis upon airbag adoption. Contrary to what insurers reasonably might have expected, the authors find that relative personal injury and collision claim frequencies increase significantly for newly-airbag-equipped models.

  • Corporate Authors:

    American Risk Insurance Association

    California State University, School of Business Administration
    Sacramento, CA  United States  95819-6088
  • Authors:
    • Peterson, S
    • Hoffer, G E
  • Publication Date: 1996-9

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00728958
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Nov 26 1996 12:00AM