LexisNexis Insurance Demand Meter Registers "Hot" For New Policies and "Cool" for Overall U.S. Auto Insurance Shopping
ATLANTA, Nov. 27, 2023 /PRNewswire/ -- The latest edition of the LexisNexis® Insurance Demand Meter reports the quarterly year-over-year U.S. auto insurance shopping growth rate declined to -1.2% in Q3 2023, down from +5.2% growth in Q2 2023 as rate increases and tightening budgets continue to impact consumers. New policy growth, or the rate at which consumers either switched or purchased new coverage, was also down from last quarter (3.9%, compared to 10.2% in Q2 2023), yet even with lower growth numbers, August and September saw record volumes of new policies.
- "This quarter's Demand Meter reminds us that the industry is still reconciling with significant macro trends that have shifted the auto insurance market significantly," said Adam Pichon, senior vice president of Auto Insurance and Claims at LexisNexis® Risk Solutions .
- "Ongoing rate increases and changing demographics continue to contribute to near-record shopping volumes, while claims severity continues to drive profitability challenges for insurers.
- Electric Vehicles (EVs) comprise a growing share of new auto insurance policies, even as new vehicle policies drop
As EV sales continue to rise, their proportion of new auto insurance policies does, too. - "Changing shopping demographics and behaviors are likely to be the norm thanks to tightening consumer budgets and ever-increasing auto insurance premiums," said Pichon.