ALL · Earnings call · 2026Q2T · Full report

Supply Chain Constraints

ALLSTATE CORP · 2026-08-05 · Importance 35 · Surprise 64

Management described the post-pandemic auto claims environment as having included a nearly 60% increase in used-car prices, higher parts costs, longer repair times and increased bodily-injury severity. These conditions previously pressured auto insurance returns and required rate increases and restrictions on new business. Current severity trends remain mixed: inflation continues to affect parts and labor, while bodily-injury severity remains relatively high compared with physical-damage severity. Management said pure premium trends were down in the quarter and that current margins remain solid, but it continues to monitor parts inflation, labor inflation and bodily-injury development.

Key facts

• Following the pandemic, supply chain constraints led to a nearly 60% increase in used car prices.