Page 32 - BusinessWest July 11, 2022

Changing Rules of the Road
Industry Trends Report Shows Signs of a Revolution in Auto Insurance
LexisNexis Risk Solutions recent- ly released its 2022 U.S. Auto Insurance Trends Report, which
aggregates annual market data about driving behaviors, auto-insurance shopping, underwriting, and claims to help insurers better navigate myri- ad evolving trends impacting the U.S. auto-insurance industry.
This year’s report analyzes 2021
data, detailing how the industry con- tinues to navigate the aftermath of pandemic-induced supply shortages, inflation, and new driving behaviors, and provides insights for insurance carriers to help improve their work- flows with an eye on streamlining con- sumer experience.
One of the big questions within the U.S. auto-insurance industry heading
into 2021 was whether it would see a rebound to more normal driving and shopping patterns, or if the industry is undergoing a revolution in the wake of the pandemic that would compel insurers to think about the policy life cycle differently.
“The jury is still very much out on the long-term effects of these market trends impacting the auto-insurance
industry,” said Adam Pichon, vice president and general manager of Auto and Home Insurance at LexisNexis Risk Solutions. “While we have seen some traditional patterns re-emerge with respect to miles driven and insurance shopping volumes, we saw another roller-coaster year due to volatile activ- ity in claims severity, insurance switch- ing, more serious traffic violations, and vehicle purchasing due to macroeco- nomic conditions.
“The jury is still very much out on the long-term effects of these market trends impacting the auto- insurance industry.”
“Add to that increasing consumer interest in telematics data and an active regulatory and legislative envi- ronment,” he went on, “and we are seeing more signs of a revolution in the industry than a rebound. Insur- ers who arm themselves with accurate and comprehensive data are poised to price and rate more accurately, handle claims more efficiently, and improve customer experience in the face of evolving market stressors.”
Another Turbulent Year
Auto-insurance shopping and new policy-growth numbers were volatile for the second year in a row, shaped largely by continued pandemic-related influences.
• Changes in driving behavior — including riskier driving behaviors such as distracted driving — created
a notable shift in the driving-violation data mix reported. An abnormal rise in major speeding violations coincided with another yearly increase in traffic fatalities.
• Claims severity increased even
as more normal driving patterns returned, particularly in the second half of the year. While severity of claims have increased, the number of ‘touches’ required to close a claim has not improved, with 29% of consumers reporting having to speak with three or more people to get their claim settled.
• Vehicle shortages and supply- chain issues led to reduced car sales and slowed the adoption of advanced driver-assistance systems after gains in recent years. And with fewer cars available, vehicle purchases were sup- pressed, which meant auto-insurance
Auto
Continued on page 35
ByYourSide
in business and in life
Timm Marini
President of Western New England, President of Personal Lines HUB International New England, LLC
Charlie Epstein
Senior Vice President, Retirement and Private Wealth Services
HUB Retirement
and Wealth Management
Whether promoting better outcomes for your retirement plan participants or pursuing your individual financial goals, we can help. HUB Retirement and Private Wealth offers knowledgeable specialists who tailor strategies
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Charlie Epstein Joins HUB International
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