Stephen Applebaum and Alan Demers // October 10, 2025 
(Image credit: cmsturgeon/Pixabay.)
During a recent conversation with industry peers, we found ourselves discussing a vendor’s decision to slash prices for a popular collision repair service—just the latest example of a troubling pattern across the property/casualty insurance ecosystem. In pursuit of market share and cost reduction, carriers and service providers alike are driving a “race to the bottom,” where short-term price competition erodes long-term value. This dynamic is reshaping relationships among insurers, vendors, and consumers—reducing profitability, discouraging innovation, and ultimately undermining customer trust in the entire system.
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