Rising car insurance rates encourage consumers to shop despite continued decline in car sales Aftermath of Hurricane Ian
Atlanta, November 16, 2022 /PRNewswire/ — LexisNexis® Risk Solutions Insurance Demand Meter update sees U.S. auto insurance purchases grow 1.2% year over year in Q3 2022 from -2.0% in Q2 2022; is reported to have been recorded. – Growth rate from Q2 2021 onwards. New car sales continue to be weak relative to his pre-COVID annual trend, and Hurricane Ian gave him upward momentum despite a significant drop in temporary shopping in late September. LexisNexis Risk Solutions® observed that much of the shopping activity in the third quarter occurred in states where rate increases were implemented in response to a surge in billing costs that began in late 2021.
Monthly shopping year-over-year changes and new policies
hurricane impact
New business growth for the quarter was up 3.9% from -7.1% in Q2 2022. Rising interest rates encouraged a diverse profile of consumers to shop, from July (-3.0%) to +7.0% and +7.9% in August and September respectively.
“July started the third quarter on a downtrend due to the subdued shopping growth seen since Q3 2021, but shopping surged in the second half of the quarter. , and surpassed it in September.” Adam PichonVice President and General Manager of Auto and Home Insurance for LexisNexis Risk Solutions. “It’s clear that interest rate fluctuations in the auto insurance market have acted as an important catalyst for US consumers to shop, especially in the few states where insurers have been able to implement interest rate changes quickly.” , might have seen a greater rise, shopping had it not been for Hurricane Ian and the devastation it caused Florida.”
Shop despite the devastating effects of Hurricane Ian
At the time the Insurance Demand Meter is issued, Ian’s insured loss is $60 billion.1 before the storm Florida Auto insurance purchases increased 10% for most of August and September, including a 13% increase in the week before the storm.Week when Ian landed and shopping volume increased Florida fell by 40%, impacting national shopping volumes by -6% the following week.
“Unfortunately, these numbers are not surprising given the density of the areas affected and the amount of destruction inflicted,” Pichon said. It had a similar impact on the shopping patterns seen in some of the storms.
Rate Rise Reveals Changes in Consumer Behavior
In the Q2 2022 edition of the Insurance Demand Meter, LexisNexis notes the transition to middle-aged shoppers aged 25 to 55 is the highest clip, a trend that continued through Q3 . All age groups purchased lower premiums, but each group turned primarily to independent agents.
“The independent agency distribution channel has shown the greatest volume growth in the last few quarters,” it said. Chris Rice, Associate Vice President, Strategic Business Intelligence, LexisNexis Risk Solutions. “Just as consumers are shopping during this uncertain time, so are independent agents seeking out and advising individuals who have witnessed rising insurance premiums.”
The third quarter also revealed two notable consumer shifts.
- Consumers are buying more carriers
- Those shopping are more and more likely to buy the new policy
“Some of these changes can be attributed to the growth of shopping in independent channels, as agents will be able to help customers buy multiple carriers at once,” Rice said. said. “We also saw many consumers shopping through the non-independent agency channel. We think it’s expensive, and we’re not responding to loss costs as quickly as our competitors.”
see ahead
States where insurers have already raised prices Florida, Georgia, Illinois When texas Shopping growth is likely to continue in the coming months. However, many other factors that could affect the state of the U.S. auto insurance industry could also play a role in whether shopping continues to surge or level off.
“While we are very likely to see continued shopping momentum in certain states, Ian’s lasting impact, potential rate hikes in many other states, and a potential rebound in new car sales in the coming months. We also track gender,” Pichon said. “All of these factors will play an important role in shopping patterns as we wrap up 2022 and start looking ahead to 2023.”
Download the latest Insurance Demand Meter.
LexisNexis Risk Solutions will provide detailed information on the continued impact of Hurricane Ian on the U.S. auto insurance industry in its Q4 2022 Insurance Demand Meter.
About the LexisNexis Insurance Demand Meter
The LexisNexis Insurance Demand Meter is a quarterly analysis of shopping volume and frequency, new business volume, and related data points. Based on analysis of billions of consumer shopping transactions since 2009, LexisNexis Risk Solutions provides this unique, market-wide perspective on consumer shopping and switching behavior.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data and advanced analytics to deliver insights that help businesses and government agencies reduce risk and improve decision-making to benefit people around the world. . We provide data and technology solutions to a wide range of industries including insurance, financial services, healthcare and government. Headquartered in Metro Atlanta, Georgia, we have offices around the world and are part of RELX (LSE: REL / NYSE: RELX), a global provider of information and analytics for professional and business clients. For more information, please visit www.risk.lexisnexis.com and www.relx.com.
Media Contact:
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Phone: +1.706.714.7083
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1 https://www.reuters.com/business/insurers-stare-up-60-bln-hit-hurricane-ian-aig-chief-zaffino-says-2022-11-02/#:~:text=Nov% 202%20(Reuters)%20%2D%20Insurers,catastrophe%20loss%20in%20U.S.%20history.
Source LexisNexis Risk Solutions
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