Despite challenges through the interval, US auto insurance coverage procuring within the third quarter of 2022 noticed a rise, a brand new report from LexisNexis has discovered.
For Q3 2022, US auto insurance coverage procuring noticed a year-over-year improve of 1.2%, up from -2.0% in Q2 2022. This marks the primary quarter-over-quarter progress since Q2 2021. LexisNexis famous that this upward momentum occurred though new car gross sales remained low in comparison with pre-pandemic annual developments. New car procuring additionally considerably decreased in late September due to Hurricane Ian.
It was famous that a lot of the Q3 2022 auto insurance coverage procuring exercise occurred in states the place fee will increase have been carried out (corresponding to Florida, Georgia, Illinois, and Texas) in response to a surge in claims prices that started through the second half of 2021.
Other key takeaways of the report embody:
- Insured losses from Hurricane Ian are at present estimated at greater than $60 billion, with procuring volumes in Florida reducing 40% the week Ian made landfall.
- Despite this, Florida skilled auto insurance coverage procuring quantity will increase of 10% for many of August and September – together with 13% greater the week earlier than the storm.
- When procuring volumes in Florida dropped the week Ian made landfall, country-wide procuring volumes the next week fell by -6%.
- Consumers are procuring extra carriers and people procuring are more and more seemingly to purchase a brand new coverage.
- The middle-aged 25 – 55-year-old demographic continued to buy on the highest clip in Q3, at the same time as procuring progress rose throughout all age teams with every group turning primarily to unbiased brokers.
- LexisNexis made two notable observations for the quarter:
- Consumers are procuring extra carriers
- Those procuring are more and more seemingly to purchase a brand new coverage
“It may be very seemingly that sure states will see continued procuring momentum, however we’re additionally monitoring the lasting impacts of Ian, potential fee taking in lots of different states, and the potential for brand spanking new automobile gross sales rebounding within the months to return,” commented LexisNexis Risk Solutions vice chairman and common supervisor of auto and residential insurance coverage Adam Pichon. “All of those components will play a vital function in procuring patterns as we shut 2022 and start to stay up for 2023.”
While auto insurance coverage procuring exercise elevated within the final quarter, the identical couldn’t be stated about how glad clients are with their insurance policies.
Read extra: Revealed – how is US auto insurance coverage buyer satisfaction faring in 2022?
Another report by J.D. Power final month gauged US auto insurance coverage buyer satisfaction ranges, discovering that satisfaction dropped seven factors to 873 (on a 1,000-point scale) from 2021, attributed to clients dropping endurance over drawn-out claims processes.