11/22/2021
ATLANTA — The latest edition of the LexisNexis® Risk Solutions Insurance Demand Meter reports the overall annual U.S. auto insurance shopping growth rate decreased to -3.9% for Q3 2021. New policy growth also reached a two-year low, dropping to -7.3% for the quarter. While negative growth rates have been rare over the past decade, decreases in new business policy growth followed the downward trend that began in May and June as the insurance industry continues to face unparalleled circumstances and economic factors.
“Insurance shopping in Q3 returned to levels that compare to 2019 and years prior rather than following the unusual trends of 2020,” said Adam Pichon, vice president of personal lines insurance at LexisNexis Risk Solutions. “Prior quarters this year were fueled by consumers returning to normalcy, but that pattern was tempered by macroeconomic and carrier-driven factors that began impacting the market in Q2 and carried over into the third quarter.”
Market Forces Impacted Q3 2021 ShoppingIn Q3, more U.S. consumers began leaving the auto insurance market, in volumes higher than the previous four years. This pattern was potentially influenced by rate increases and by the car shortage, where policy holders who lacked collision coverage may have been unable to replace vehicles.
“Leveraging more than ten years trends, we have seen the cyclical nature of insurance shopping trends,” said Chris Rice, associate vice president of strategic business intelligence, insurance, at LexisNexis Risk Solutions. “Consumers shop when they see their premiums increase, which often results from either a consumer experiencing a life event, such as purchasing a new home or vehicle or adding a newly licensed driver, or a higher bill when their policy renews as a result of a claim, a traffic violation, or their carrier raising rates.”
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About the LexisNexis Insurance Demand MeterAbout LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit LexisNexis Risk Solutions and RELX.
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