LexisNexis: Auto insurance shopping rebounded in Q3 2022
This is the first quarter-over-quarter growth auto insurance shopping trends have seen since Q2 2021.
After dropping 2% in Q2 2022, auto insurance shopping in the U.S. was up 1.2% in Q3 2022, reported the latest LexisNexis Risk Solutions Insurance Demand Meter. This is the first quarter-over-quarter growth auto insurance shopping trends have seen since Q2 2021. New policy growth also saw an increase of 3.9% in Q3 – a significant jump from the -7.1% reported in Q2 2022.
According to LexisNexis, shopping has increased in states where there have been recent rate increases. Drivers who decide to shop around for a new policy are also perusing more carriers than in previous quarters, which can be partially attributed to more insureds choosing to utilize independent agents who help them shop multiple carriers at once. These independent channels have seen the largest volume growth in recent quarters, compared to direct and exclusive distributors.
“We began Q3 with July trending down with the shopping growth suppression we’ve seen since Q3 2021, but shopping came roaring back later in the quarter. August matched record volumes from 2020, and then surpassed them in September,” Adam Pichon, vice president and general manager of auto and home insurance at LexisNexis Risk Solutions, said in a press release. “It is clear the auto insurance market’s rate activity is serving as a key catalyst in causing U.S. consumers to shop, especially in a handful of states where insurers have been able to quickly implement rate changes. In fact, we likely could have seen greater rises in shopping if not for Hurricane Ian and the devastation it caused in Florida.”
As Pichon mentioned, auto insurance shopping volumes were greatly impacted by the landfall of Hurricane Ian – decreasing 40% in Florida and 12% in South Carolina the week the storm hit, and 6% nationwide the following week. Prior to Ian, Florida was enjoying auto insurance shopping volumes that were up about 10% for the majority of August in September.
“Unfortunately, these numbers are not surprising given the density of the impacted areas and the amount of destruction inflicted,” Pichon continued in the release. “Ian had a similar impact on shopping patterns seen with some of the other large storms that have made landfall in recent years.”