ATLANTA, Aug. 26, 2021 /PRNewswire/ -- The latest
edition of the LexisNexis® Risk Solutions Insurance Demand Meter
reports the overall annual U.S. auto insurance shopping rate rose
to 41.6% in Q2 2021, as market conditions over the past year
spurred traditionally stable segments to shop their
insurance. While shopping grew 1.1% year-over-year (YOY) in
Q2, new policy growth reached 8% despite volumes consistent with Q1
2021. The Meter shows a "Nuclear" reading as compared to Q2 2020's
low volumes and market hurdles.
"During the second half of 2020, strong shopping and new
business volumes were buoyed by state and federal relief programs,
so it will be interesting to see how the second half of 2021
performs," said Chris Rice,
associate vice president of strategic business intelligence for
LexisNexis Risk Solutions. "The second quarter of 2021 represents
the last time the industry's YOY growth numbers will compare to the
pandemic-related shutdowns from last year."
In 2021, the boost in uninsured shopper volumes related to tax
returns, which typically occurs in late-February and early-March,
was pushed to late-March and early-April due to IRS processing
delays. The third round of COVID-related stimulus checks hit
in early April as well, resulting in a second wave of uninsured
shoppers. Because uninsured shoppers are more likely to
purchase a new policy, there was also a notable impact on new
business volumes, combined with record low volumes in April 2020, and results in a surge of 32.3%
growth in April.
The Young are Becoming Restless Again
In 2020, the
under 35 age groups saw the biggest impacts during and following
the shutdowns while the 66+ age groups saw strong volumes. In
2021, the younger age demographics are returning to expected
volumes resulting in strong YOY growth numbers while volumes for
older demographics remain relatively flat.
"Despite new vehicle sales suppressed by microchip shortages,
reduced rate activity by carriers, and labor shortages in nearly
every service industry, shopping volumes have remained surprisingly
strong," said Adam Pichon, vice
president and general manager of auto Insurance at LexisNexis Risk
Solutions. "While driving behaviors trended back towards 2019
patterns over the first half of 2021, which could lead to carriers
evaluating rate levels over the second half, the full impact of the
COVID delta variant is the big unknown as we look to the
future."
To download the latest Insurance Demand Meter, click here.
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.
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. 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
View original content to download
multimedia:https://www.prnewswire.com/news-releases/lexisnexis-insurance-demand-meter-shows-us-auto-annual-shopping-rate-continued-to-rise-in-q2-301363049.html
SOURCE LexisNexis Risk Solutions