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Monday, 10 May 2021 09:22

LexisNexis U.S. Auto Insurance Trends Report Shows COVID-19's Impact on the Industry

Index

...the influence of COVID-19.

 

Auto Insurance Trends Highlights a Rollercoaster Year

 

  • The auto insurance shopping data fluctuations were turbulent throughout 2020. However, year over year, 2020 shopping volumes closed 5.3% higher than 2019 with an annual year-end shop rate of 41%.
  • Cyclical policy renewal patterns for many consumers were interrupted by the pandemic with new business policies written down 12.6% in April 2020 and 10.4% year over year. Even so, this unusual activity still prompted an overall net increase for 2020, bringing market retention to 83%.
  • Empty roadways gave rise to dangerous driving behavior with a noted increase in high-speed instances first observed in mid-March 2020 and that held at 10% higher than 2019 figures for the remainder of the year.
  • New generational data illustrated an increase of Driving Under the Influence (DUI) violations among younger drivers---particularly those in the Generation Z age segment, with an approximate 50% increase in recorded violations in March and April of 2020.
  • Collision claims decreased, but severity rose, much like the reduction in total miles driven, the volume of collisions and subsequent claims dropped considerably. Collision severity saw a 3.7% year-over-year increase in 2020.

 

The trends identified in this year's report highlight several opportunities for auto insurance carriers to improve their business operations regarding quoting, underwriting and claims, and prepare for any future disruptions.

 

To download the LexisNexis Auto Insurance Trends Report, click here.

 

Source: LexisNexis

 

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