ATLANTA, Aug. 17, 2020 /PRNewswire/ -- LexisNexis® Risk
Solutions released its Latest Insurance Demand Meter, which reports
Q2 U.S. auto insurance shopping activity. According to the Meter,
auto insurance shopping and new business growth rebounded in May
and June after an out of the ordinary drop in late March and early
April due to COVID-19 shutdowns and the impact from civil unrest
and other widespread national events. However, there was little
impact on the annual shopping rate, which remained strong for both
Q1 and Q2.
"The positive growth in the Q2 numbers are a testament to the
insurance industry's commitment during challenging times," said
Tanner Sheehan, associate vice
president of auto insurance at LexisNexis Risk Solutions. "Despite
significant headwinds on multiple fronts, the industry continues to
prove its stability and preparedness for the unforeseen."
Key insights from the Second Quarter
- Overall growth: Although there was a +0.7% increase in the auto
insurance shopping quarterly growth rate in Q2 2020, it
was still 80% below the 5-year average. New business growth
dipped slightly to -1.9% for the quarter, and was seven times lower
than the prior year.
- Trends by age group: The 66+ age demographic shopped at the
highest rate with five weeks during the quarter topping 20% growth,
while the under 35 age groups returned to their anticipated
pre-pandemic growth rates hovering around 5% growth.
- Trends by shopping channels: Insurance carriers that use
exclusive agents fared the best during the COVID-19 shutdown and
have subsequently seen higher growth rates than independent agents
or direct channels, ending the quarter at 20% growth
year-over-year.
- Trends for new business: New business volume fell to -14% in
April, a low that pulled the overall growth rate for the quarter
down to -2%. Similar to shopping growth, new business volumes
rebounded in May and June to just above 2019 levels and ultimately
reached 8% growth by the end of the quarter.
Early third quarter trends
Early Q3 numbers show both
shopping and new business volumes are tracking to pre-COVID-19
levels, and market conditions are developing to potentially spur
increased shopping growth rates.
"Cancellation moratoria imposed by carriers at the height of the
COVID crisis will be expiring, state governments are reopening and
issuing more driver's licenses, and carriers are starting to file
for rate decreases," said Sheehan. "These are all signs that
shopping has strong potential to pick up as the quarter
progresses."
About the LexisNexis Insurance Demand Meter
The
LexisNexis Insurance Demand Meter is a quarterly analysis of
shopping volume and frequency, new business volume and related data
points. LexisNexis Risk Solutions offers this unique market-wide
perspective of consumer shopping and switching behavior based on
its analysis of billions of consumer shopping transactions since
2009, representing nearly 90% of the universe of shopping
activity.
To download the Q3 2020 report, click here.
About LexisNexis Risk Solutions
LexisNexis® Risk
Solutions harnesses the power of data and advanced analytics to
provide insights that help businesses and governmental entities
reduce risk and improve decisions to benefit people around the
globe. We provide data and technology solutions for a wide range of
industries including insurance, financial services, healthcare and
government. 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 and analytics for professional and business
customers across industries. For more information, please
visit www.risk.lexisnexis.com, and www.relx.com.
Media Contacts:
Rocio
Rivera
LexisNexis Risk Solutions
Phone: +1.678.694.2338
rocio.rivera@lexisnexisrisk.com
Mollie Holman
Brodeur Partners for LexisNexis Risk Solutions
Phone: +1.646.746.5611
mholman@brodeur.com
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SOURCE LexisNexis Risk Solutions