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Revealed – how did auto insurance shopping fare in Q3 2022?- Newshubweek

Revealed - how did auto insurance shopping fare in Q3 2022?
Written by Arindam


Revealed - how did auto insurance shopping fare in Q3 2022?

Despite challenges during the period, US auto insurance shopping in the third quarter of 2022 saw an increase, a new report from LexisNexis has found.

For Q3 2022, US auto insurance shopping saw a year-over-year increase of 1.2%, up from -2.0% in Q2 2022. This marks the first quarter-over-quarter growth since Q2 2021. LexisNexis noted that this upward momentum occurred even though new vehicle sales remained low compared to pre-pandemic annual trends. New vehicle shopping also significantly decreased in late September thanks to Hurricane Ian.

It was noted that much of the Q3 2022 auto insurance shopping activity occurred in states where rate increases have been implemented (such as Florida, Georgia, Illinois, and Texas) in response to a surge in claims costs that began during the second half of 2021.

Other key takeaways of the report include:

  • Insured losses from Hurricane Ian are currently estimated at more than $60 billion, with shopping volumes in Florida decreasing 40% the week Ian made landfall.

    • Despite this, Florida experienced auto insurance shopping volume increases of 10% for most of August and September – including 13% higher the week before the storm.
    • When shopping volumes in Florida dropped the week Ian made landfall, country-wide shopping volumes the following week fell by -6%.

  • Consumers are shopping more carriers and those shopping are increasingly likely to buy a new policy.
  • The middle-aged 25 – 55-year-old demographic continued to shop at the highest clip in Q3, even as shopping growth rose across all age groups with each group turning primarily to independent agents.
  • LexisNexis made two notable observations for the quarter:

    •     Consumers are shopping more carriers
    •     Those shopping are increasingly likely to buy a new policy

“It is very likely that certain states will see continued shopping momentum, but we are also tracking the lasting impacts of Ian, potential rate taking in many other states, and the potential for new car sales rebounding in the months to come,” commented LexisNexis Risk Solutions vice president and general manager of auto and home insurance Adam Pichon. “All of these factors will play a critical role in shopping patterns as we close 2022 and begin to look ahead to 2023.”

While auto insurance shopping activity increased in the last quarter, the same could not be said about how happy customers are with their policies.

Read more: Revealed – how is US auto insurance customer satisfaction faring in 2022?

Another report by J.D. Power last month gauged US auto insurance customer satisfaction levels, discovering that satisfaction dropped seven points to 873 (on a 1,000-point scale) from 2021, attributed to customers losing patience over drawn-out claims processes.

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Arindam

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