SFA Research Corner: Surging Auto Insurance Premiums Impact Credit and Affordability

This week we are excited to introduce our Research Feature, part of a suite of research products that explore emerging trends in the broader economy and their potential impact on securitization. Our inaugural feature, titled “Surging Auto Insurance Premiums Impact Credit and Affordability,” delves into the rise in auto insurance premiums and the strain they place on household finances. For securitization participants, this trend demands attention as the upward trajectory of auto insurance premiums presents a significant challenge to the already declining credit performance of $1.5 trillion in auto loans. Authored by William Black of Black Analytics LLC, this feature draws on his extensive expertise gained during his tenure at a leading rating agency, where he led the Consumer Structured Finance New Issue Ratings team for the Americas for over two decades. Mr. Black authors a newsletter, Consumer Credit Matters, which can be found here.

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