Read more: Auto Insurance Purchase Rate Drops in Q3 – LexisNexis
Meanwhile, policy news growth was -6.9% for the quarter compared to Q4 2020 – only a slight improvement from the two-year low of -7.3% in Q3 2021. industry responded to this by reducing its marketing activities, focusing instead on rate increases and restoring profitability.
“Over the past couple of years, the auto and auto insurance industries have seen buying ebbs and flows that have sometimes been a complete departure from what we’re used to. see – especially the unusual trends we’ve seen in 2020,” commented Adam Pichon, vice president and general manager of auto insurance at LexisNexis Risk Solutions.
“While the start of 2021 again showed surprising upticks in buying behavior influenced by macroeconomic conditions, we see things starting to return to the norm over the past two quarters,” continued Pichon. “As a result, consumers across the country have seen their insurance rates rise steadily in recent months, with insurers on guard to gauge profitability as more drivers get back on the road.”
LexisNexis suggested in its report that 2022 could be another year of volatility in auto and insurance purchases in year-over-year growth rates. The report highlighted two things – how the market reacts to ongoing automotive chip shortages and consumer responses to the lack of stimulus checks and annual child tax credits – as key trends the industry needs to watch. .
Although growth in insurance purchases continues to take a hit, Pichon suggested that “increased purchasing activity this year may be on the horizon” as carrier rate increases take effect in the coming months.
“Historically, a significant rate disruption has been a catalyst for high purchase volumes in the market,” the vice president said.