LexisNexis Insurance Demand Meter Registers as "Sizzling" for New Policies and "Hot" for U.S. Auto Insurance Shopping
ATLANTA, Aug. 16, 2023 /PRNewswire/ -- The latest edition of the LexisNexis® Risk Solutions Insurance Demand Meter reports the quarterly year-over-year U.S. auto insurance shopping growth was +5.2% in Q2 2023, as consumers continue to react to widespread rate increases by auto insurers in the face of an ever-hardening market. Although year-over-year shopping growth remains high, new business volumes began to outpace shopping last quarter, signaling that the consumers that are shopping are finding policies that suit their individual needs. Quarterly year-over-year new policy growth –– or the rate at which consumers either switched or purchased new coverage –– was strong at +10.2%.
- Although year-over-year shopping growth remains high, new business volumes began to outpace shopping last quarter, signaling that the consumers that are shopping are finding policies that suit their individual needs.
- Increased claims severities have continued to challenge the U.S. auto insurance market, registering six consecutive quarters of at least 5% growthi.
- While new policy volumes remain on the rise, U.S. auto policies' in-force growth has slowed below traditional averages.
- Pichon also advises to keep a close eye on the property insurance market, which may be following the auto insurance market's lead in raising rates.