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Banking and Payments Intelligence ReportJuly 2023 With Financial Health Strained, Banks Should Fortify Security to Help Improve Customer Relationships As financial health remains stubbornly suppressed, banks are on the hunt for ways to improve customer relationships. According to the latest JD Power data, it appears that an increased focus on account security may be an effective way to accomplish that goal. Overall, 35% of bank customers in the United States have experienced some type of fraudulent activity on their credit or debit cards in the past 12 months. Curiously, though, only some banks are trying to take proactive steps to mitigate those occurrences. Just one-third of customers say they can recall prompts with a security review of their account. It’s an area of neglect that could have negative ramifications on bank customer satisfaction and loyalty. Rate-chasing has seemingly stalled out—31% have moved money from their primary bank, largely the same rate since February—and with customers stuck in a financial malaise, security could emerge as a major factor in customers’ decision to move their money. That means banks need to get serious about fraud quickly. More of the Same There has been no significant change in overall financial health. Nearly one-third (32%) of respondents are financially healthy, while 43% are vulnerable.

Vehicle configuration complexity has increased exponentially over the last 10 years, primarily driven by a shift from mechanical systems to “software-defined” architectures, with over 600,000 unique vehicle configurations sold in North America in the 2025 model yearAverage used-vehicle retail prices have risen 20% in the past five yearsAuto insurance actuarial models built on incomplete vehicle identification data could be off by upwards of $15,000 per vehicle Henry Ford famously said that customers “could have a Model T in any color they want—so long as it was black.” Today’s automotive market could not be more different. Vehicle customization has exploded over the past decade as automakers compete to meet increasingly specific consumer preferences. For example, in the large pickup truck segment, the Ford F-150 currently has upwards of 100,000 unique build configurations and, market-wide, more than 600,000 unique vehicle configurations were sold in the United States in the last year alone, according to JD Power data.While this level of customization has benefited consumers and automakers, it has created a growing challenge for auto insurers. Many actuarial models used to price and underwrite policies still rely on simplified vehicle identification data that cannot fully capture the configuration and replacement value of modern vehicles. At the same time, volatility in used-vehicle pricing and rising repair costs are further complicating valuation models that were built for a far more predictable market.This combination of vehicle complexity and market volatility is creating a widening gap between the values insurers assume during underwriting and the costs they ultimately face when repairing or replacing vehicles after a claim.This Insurance Intelligence Report explores key data points gathered from JD Power studies and proprietary market data to offer a data-driven perspective on the current state of insurance industry vehicle valuations. Widespread MSRP Variability Within the Same TrimOne of the most significant challenges insurers face today is the dramatic variability in vehicle pricing—even among vehicles that appear nearly identical on the surface. Automakers now offer a wide range of factory-installed options, packages and custom features that can dramatically affect a vehicle’s price. From advanced driver assistance systems (ADAS) and upgraded powertrains to premium interiors and specialty paint packages, two vehicles with the same year, make, model and trim can have vastly different original values.For example, a 2024 Ford F-150 Lariat 4WD SuperCrew with a 5.5-foot bed could have been sold for approximately $69,630 with standard options, while a fully optioned version of the same vehicle could reach $84,465, according to JD Power data. For insurers, this creates a consequential underwriting blind spot. Unless they have access to the full 17-digit vehicle identification number (VIN) and the corresponding OEM build data tied to that VIN, they may not know which configuration they are actually insuring—creating up to $14,835 in unknown price variability.Many insurers rely on a shortened VIN identifier—often referred to as a “squish VIN”—when building underwriting models or quoting policies. While this truncated VIN provides basic information such as year, make, model, and sometimes trim level, it lacks the detailed configuration data needed to accurately assess a vehicle’s full replacement value.As vehicle configuration complexity continues to increase, reliance on simplified vehicle identification methods can introduce significant pricing inaccuracies into underwriting models.The Great Used Vehicle Price ResetVehicle complexity is only part of the challenge. The used-vehicle market has also undergone significant structural changes over the past several years.The average used-vehicle retail price is now $29,488, reflecting a more than 20% increase over the past five years, according to JD Power data. Much of this increase can be traced to supply shortages caused by pandemic-era production disruptions, which limited the availability of late-model used vehicles entering the market. For insurers, this volatility creates another modeling challenge. Traditional valuation models have long relied on the assumption that most mass-market vehicles depreciate roughly 20% per year. However, recent market dynamics have disrupted those historical depreciation patterns.Take the earlier example of the 2024 Ford F-150. Today, that vehicle is worth approximately $50,965, representing a 28% decline from its original MSRP. Under traditional depreciation models, insurers might have estimated the vehicle’s current replacement value at roughly $55,165, resulting in a $4,200 gap between projected and actual value. EV’s are further complicating traditional valuation models as EVs are projected to lose 59% of their value over five years, compared to an industry average of 46% for all vehicle types, according to JD Power data.Across millions of insured vehicles, valuation discrepancies like this can meaningfully impact claims severity and insurer profitability. More Tech, More ProblemsAnother major factor complicating insurance valuation models is the rapid expansion of vehicle technology. Modern vehicles increasingly include ADAS such as automatic emergency braking, adaptive cruise control, lane-keeping assistance and collision avoidance technologies. While these features improve safety and help reduce the likelihood of severe accidents, they can significantly increase repair costs when collisions occur.Sensors, cameras and radar modules are often embedded in bumpers, mirrors, windshields and body panels. Even minor accidents can require expensive sensor replacements and complex recalibration procedures.Accurately modeling this risk requires insurers to know precisely which safety technologies are installed on each vehicle they insure. Without accurate, detailed VIN-level configuration data, insurers may not have visibility into which vehicles contain these systems and which do not—introducing further uncertainty into repair cost projections. AI TransformationAs insurers increasingly adopt AI-driven underwriting, claims automation and pricing optimization tools, the importance of accurate foundational data becomes even greater. Artificial intelligence models are only as effective as the data used to train them. Without precise vehicle configuration and valuation inputs, AI systems risk amplifying inaccuracies rather than improving decision-making.Insurers that modernize their vehicle data infrastructure will be better positioned to price risk accurately, control claims severity and maintain profitability in an increasingly complex automotive landscape. Cracking the CodeWith the average new-vehicle transaction price now exceeding $46,000, insurers should expect continued upward pressure on vehicle repair and replacement costs. However, rising costs do not necessarily mean insurers must accept greater pricing uncertainty.Insurance has always been about accurately measuring and pricing risk. In today’s competitive environment, doing so requires more precise data about the vehicles being insured.As vehicle complexity has accelerated, insurers need to be able to track more detail than what’s currently available in “squish vin” datasets. Access to full 17-digit VIN configuration data, OEM build information, real-time vehicle valuation insights and feature-level vehicle attributes can help insurers build more accurate underwriting models, improve claims severity forecasting and better align pricing with actual risk. What Lies AheadFor an insurer, moving from generic VIN decoding to precise, configuration-level data transforms the business from reactive to surgical. As vehicles have become “computers on wheels,” with significant price variations, knowing the exact build data—not just the year, make, and model—is the difference between profitability and a loss ratio spike.After years of record rate increases and now that pricing issues have been resolved, auto insurance carriers are pulling out all the stops to grow. By shifting from broad vehicle categories to precise, VIN-level configuration data, insurers are gaining the pricing confidence needed to aggressively target new growth opportunities by selling to a broader set of consumers with varying degrees of risk. Find out MoreThis Insurance Intelligence Report was authored by James Vecchio, Head of VIN Products at JD Power. The analysis draws on JD Power studies, proprietary market data, and VIN‑level configuration and valuation intelligence, including insights derived from the JD Power StudyPrice 2.0 tool, which decodes the full 17‑digit VIN to reflect a vehicle’s exact build profile.JD Power Specialty Vehicles provides P&C insurance carriers with advanced decoding and valuation products for powersports, marine, recreational vehicles, classic cars, commercial trucks, and manufactured housing. Available via subscription, our data is the most accurate and robust in these industries—trusted by more than 90% of the market.To learn more about the research, underlying methodology, or vehicle valuation capabilities available to insurers, please contact the JD Power Insurance Intelligence team.Media ContactsBrian Jaklitsch; East Coast; 631-584-2200; [email protected] LaMuraglia, JD Power; East Coast; 714-621-6224; [email protected]

As holiday bills continue to be paid off and tax refunds get set to hit consumers’ bank accounts, the number of consumers in the U.S. classified as financially unhealthy[1] is 68%, as measured by JD Power. That marks an improvement from 72% last month, but it hardly spells widespread relief.

Automotive Insights from JD Power ResearchIn an era of record-high vehicle prices and extended ownership periods, the decision-making process for purchasing a vehicle is more complex than ever. To explore strategies for standing out in this competitive landscape, Frank Hanley, senior director of auto benchmarking at JD Power, shared his perspective on empowering shoppers to make informed decisions, the importance of highlighting dependability and driving EV adoption. These insights can help to inform or shape automotive marketing strategies in 2026. Why Access to Unbiased Information is Critical for Today’s Consumer Today’s automotive shoppers face overwhelming choices, making unbiased and reliable information more valuable than ever. While vehicle shoppers can access countless online reviews and editor ratings, these sources often fail to capture the full picture, relying on feedback from a small, unrepresentative sample of consumers. JD Power’s approach is different: We collect data from more than 6 million consumers annually, delivering insights grounded in real-world experiences.The research behind our rankings is independently funded and based on feedback from a large, representative sample of verified customers—not testers, editors, or so-called experts.We identify areas of satisfaction and common problems, helping consumers make better-informed decisions. This unbiased data empowers shoppers to make their choices with confidence and select a vehicle that genuinely aligns with their needs and expectations. The Importance of Promoting Long-Term Dependability Consumers are keeping vehicles longer than ever—on average, 12 years or more1— beyond the typical 3-year/36,000-mile warranty period. Unsurprisingly, expected reliability has become the top reason buyers choose one model over another. 2 The JD Power 2026 U.S. Vehicle Dependability Study highlights this growing customer focus on dependability, underscoring the fact that not all vehicles age equally.While some brands see a reduction in problems from 90 days of ownership to three years by as much as 12%, others experience as high as a 39% increase in problems during this period.The average rate of increase in problems from 90 days to three years is 6% for the industry. Marketers promoting makes and models with strong dependability have powerful messaging opportunities that meet the expectations of modern car buyers. Rethinking EV Marketing to Drive Adoption As electric vehicles (EVs) gain momentum, marketers face unique challenges in connecting with consumers. Current marketing often emphasizes aspects of the EV experience, like advanced technological features, that don’t resonate as well with first-time EV buyers. To maximize resonance, EV marketing should focus on: Convenience: Highlight the benefits of home charging and reduced trips to refuel.Performance: Emphasize the smooth, powerful driving experience of electric engines.Range: Consumers might be promised a 350-mile range on a single charge, but real-world conditions—such as driving style, HVAC use and temperature—can have a significant effect on their overall range. Be transparent about range variability due to factors like driving style and weather to build trust.By addressing shopper pain points and focusing on practical benefits, automakers can accelerate EV adoption while aligning with shoppers’ needs. Final Thoughts As the automotive market evolves, understanding shifting shopper expectations is essential for standing out in 2026.Empower consumers with reliable information: When featuring third-party information in marketing, ensure that it comes from a credible, independent source.Highlight vehicle dependability: Emphasize vehicle reliability in marketing and advertising, recognizing that consumers are keeping their vehicles for longer periods.Focus on EV benefits: Emphasize key aspects of the EV experience, including convenient home charging, realistic range, and the high-performance driving experience. By leveraging these data-driven insights, marketers can better connect with today’s automotive customers and stand out in a highly competitive market. Learn more about these automotive awards:U.S. Vehicle Dependability StudySMU.S. Electric Vehicle Experience (EVX) Ownership StudySMU.S. Customer Service Index (CSI)SMU.S. Electric Vehicle Experience (EVX) Home Charging StudySM 1JD Power 2026 U.S. Vehicle Dependability StudySM2JD Power 2026 U.S. Sales Satisfaction Index (SSI) StudySM