Research
LexisNexis: Auto insurance shopping remains at ‘nuclear’ level, new policy growth rates continue to surge
For the second consecutive quarter, the LexisNexis U.S. Insurance Demand Meter recorded “nuclear” levels of auto insurance shopping and new policy volumes.
New policy volumes also set a new record for growth since LexisNexis first began tracking U.S. insurance consumer shopping behavior more than a decade ago.
Marketing by insurance companies caused consumers looking for better rates to “respond in droves.” By the end of the quarter, 45% of U.S. policies-in-force had been shopped at least once in the past 12 months. LexisNexis attributes this to “the continued escalation of activity the market has witnessed over the past two quarters.”
U.S. consumer auto insurance shopping grew by 31.2% year-over-year in Q3 2024, up considerably from Q2’s 16.1% growth, according to LexisNexis.
New auto policy volumes increased by 25.9% year-over-year, an increase from Q2’s 19.5%.
Cyber Threats, Changes in Climate, and Business Interruption are Insurance Buyers’ and Sellers’ Top Risk Concerns, Says New Munich Re/Triple-I Survey | Business Wire
Research from Munich Re and Triple-I Provides Key Insights into Risk Perception, Knowledge Gap
Cyber incidents, changes in climate, and business interruption are the chief risk concerns among key marketplace segments in the insurance industry, a new survey from Munich Reinsurance America Inc. (“Munich Re US”) and the Insurance Information Institute (Triple-I) reveals.
The survey, RiskScan 2024, reveals the top risk concerns in five categories – insurance risks, market dynamics, natural disasters, emerging technologies, and property and casualty (P&C) insurance costs – among individuals in five key market segments: P&C insurance carriers, P&C agents and brokers, middle-market business decision makers, small business owners, and consumers.
Among the key findings are the overall top three perceived insurance risks:
- Cyber incidents are a primary concern in all five market segments.
- Changing climate, demonstrated by increasing frequency and severity of extreme weather, is a risk driven by consumer concern.
- Business interruption – a persistent effect of the pandemic, natural catastrophes, and ongoing supply chain issues – is a top concern for the insurance industry and businesses.
How to retain Gen Z insurance customers
In a survey of Gen Z adults from earlier this year, the NAIC asked participants to finish this sentence: “The thought of dealing with insurance makes me feel…” To which 54% of respondents said “anxious” or “overwhelmed.”
Only about a fourth of those surveyed could correctly identify simple insurance terms like “deductible,” and 22% have little or no awareness of the importance of auto coverage.
“There's a gap in insurance knowledge among Gen Z adults," Andrew N. Mais, NAIC president and Connecticut Insurance Commissioner said in a release about the study. "This is a critical time in their lives, as they are laying the groundwork for their financial futures, and as an insurance regulator, I know how confusing navigating the world of insurance can be. The good news is you don't have to figure these things out by yourself. There are independent resources to help consumers of all ages and stages of their lives get answers to insurance questions and ensure there are no gaps in their coverage."
While getting younger generations to buy into insurance is a challenge of its own, it can also be difficult for insurers and agents to keep Gen Z customers around long-term once they secure them.
Telematics, Driving & Insurance
Telematics policy draft faces pushback
[Ed. Note: If regulators follow Maryland's lead, insurers will either make telematics based auto insurance pricing more personalized and transparent or back away from promoting UBI programs. We hope and believe it will be the former.]
During the comment period, the APCIA criticized the proposal
The Maryland Insurance Administration has issued a draft bulletin outlining notification requirements for automobile insurance premium increases tied to telematics programs.
The proposal, which mandates detailed disclosures about factors affecting premium changes, has drawn responses from key industry players, including State Farm Mutual Automobile Insurance Co. and several trade associations, according to a report from AM Best.
The proposed rules would require insurers to identify each driving behavior measured through telematics programs that contributes to a premium increase.
Insurers would not need to specify the proportional contribution of each factor but must provide this data if requested by the insurance commissioner. Notices must be delivered at least 45 days before the increase takes effect and avoid vague language such as “may have included” or “increased due to some or all of the following.”
Climate/Resilience/Sustainability
Northern California faces possible record-breaking rainfall from atmospheric river and another storm is coming
A powerful atmospheric river is unleashing torrential, flooding rainfall across Northern California and parts of the Pacific Northwest in the wake of a historically strong bomb cyclone — and another storm is on the way. Updated 1:23 AM EST, Fri November 22, 2024
A rare level 4 of 4 high risk of flooding rainfall is in effect through Friday morning as the atmospheric river — still boosted by the diminishing bomb cyclone — points a firehose of moisture at the coast, according to the Weather Prediction Center.
“By Friday conditions over much of the area will be saturated, and this last push of elevated rainfall rates on top of saturated ground will likely result in a continued flood threat,” the center warned Thursday night.
Top 10: Sustainability Leaders in InsurTech | InsurTech Digital
This week's top 10 shines a spotlight on some of the insurance world's most sustainable practitioners, including execs from Convex, Previsico and Allianz
Sustainability has become a critical focus for the insurance sector, driven by the escalating challenges of climate change and evolving societal expectations. Insurers are increasingly recognising their pivotal role in mitigating environmental risks and promoting sustainable practices.
As climate-related disasters become more frequent and severe, the industry faces mounting claims and the need to reassess risk models. Simultaneously, there's growing pressure from regulators, investors and customers to incorporate Environmental, Social and Governance (ESG) principles into business operations.
Forward-thinking insurers are not only adapting their risk assessment and underwriting practices but also leveraging technology to create innovative, sustainability-focused products. This shift towards sustainability is not just a moral imperative but a strategic necessity for businesses who want to stick around.
In this list, we're going to look at 10 of the sector's brightest sustainable practitioners and thought leaders.
News
Thanksgiving Travel Expected to Set New Record | AAA Newsroom
AAA projects 79.9 million travelers will head 50 miles or more from home over the Thanksgiving holiday travel
AAA projects 79.9 million travelers will head 50 miles or more from home over the Thanksgiving holiday travel period*. For the first time, AAA’s forecast includes the Tuesday before and the Monday after Thanksgiving Day to better capture the flow of holiday travelers. This year’s projection of nearly 80 million travelers is an increase of 1.7 million people compared to last year and 2 million more than in 2019.
“Thanksgiving is the busiest holiday for travel, and this year we’re expecting to set new records across the board, from driving to flying and cruising,” said Stacey Barber, Vice President of AAA Travel. “Americans reconnect with family and friends over Thanksgiving, and travel is a big part of that. AAA continues to see travel demand soar post-pandemic with our members looking for new adventures and memorable vacations.”
InsurTech/M&A/Finance💰/Collaboration
One Inc and U.S. Bank Partner to Modernize Insurance Payment Solutions | Insurance Innovation Reporter
The collaboration will provide the seamless integration of U.S. Bank’s money movement and banking capabilities with One Inc.'s ClaimsPay and PremiumPay solutions.
One Inc (Folsom, Calif.), the largest payments network for the insurance industry, has announced a partnership with U.S. Bank (Minneapolis) aimed at delivering a comprehensive, unified payment experience for Property & Casualty (P&C) and Life insurers. The collaboration will provide the seamless integration of U.S. Bank’s money movement and banking capabilities with One Inc’s ClaimsPay and PremiumPay solutions to optimize claims and premium processing experiences for customers, according to a One Inc statement.
U.S. Bank is one of the largest commercial banks in the United States. Its strength, stability and deep experience in payments and insurance will improve complex claims and premium payment processes for mutual carrier customers, the One Inc statement says. In addition, with One Inc’s Digital Wallet, insurance carriers can streamline payment processes across multiple channels, from credit/debit cards to Apple Pay, Google Pay, PayPal, Venmo, and ACH transactions.
How Pie Insurance is Driving Its Next Phase of Growth
In 2017, Pie Insurance was just a handful of colleagues in a coworking space.
As the small team worked together to reimagine workers’ compensation insurance for small businesses, the company began to chart a path toward growth rooted in innovation, serving customers and staying committed to its employees.
“I, of course, had big dreams and a vision of what we could become,” Co-Founder and President Dax Craig said. “I could not be more excited about what we have achieved to date. From working with one agency partner to over 4,000, and from our first customer to serving tens of thousands of small businesses across the country, driving Pie’s growth has been career-defining. Yet, in so many ways we are just at the beginning of our journey.”
Craig went on to explain that the opportunities before the organization are bigger than Pie itself — in his eyes, the company has the chance to continue to shift its entire industry.
“Through Pie, I want to fundamentally change how the insurance industry operates,” he said. “I want insurance to be a customer-centric industry. This means putting customer needs first and doing the right thing, especially when no one is watching. By focusing on the customer first, in an industry that often prioritizes compliance and internal needs, we can do good and build great businesses.”
He continued, “There is a huge gap in the insurance market for small businesses, because they have been historically underserved. Small businesses have been systematically ignored and overcharged because incumbent insurance carriers and agents have found it too difficult and costly to serve them. At Pie, we are leveraging technology and data science to deliver accurately priced policies and a simple process for agents. By prioritizing our customers’ need for easy to access and affordable insurance, I believe we will become the number one place small businesses go when shopping for commercial insurance.”
Recommended Events
SIR (Society of Insurance Research) 2025 Annual Conference |May 4-6, 2025 |Chicago, IL
SIR's 2025 Annual Conference: Curiosity at the Core - Sparking Innovation in Insurance Research
In the ever-changing insurance industry, a researcher’s curiosity is paramount. It drives the exploration of new trends, technologies, and methodologies, enabling the industry to adapt and thrive amidst constant change.
This curiosity fuels innovation, leading to the development of more effective risk assessment models, personalized insurance products, and improved customer experiences. By challenging assumptions and seeking out novel solutions, researchers can empower the industry stay ahead of emerging challenges and opportunities.
Join us in Chicago, May 4-6 as we address the ever-changing insurance industry and how our inquisitive nature can help drive insights and strategy. Join us to share insurance research knowledge and expertise, as well as diverse perspectives.
Data Privacy
Modern Cars Are Surveillance Devices on Wheels With Major Privacy Risks: Report
New research reveals serious privacy flaws in the data practices of new internet connected cars in Australia. It’s yet another reason why we need urgent reform of privacy laws.
Modern cars are increasingly equipped with internet-enabled features. Your “connected car” might automatically detect an accident and call emergency services, or send a notification if a child is left in the back seat.
But connected cars are also sophisticated surveillance devices. The data they collect can create a highly revealing picture of each driver. If this data is misused, it can result in privacy and security threats.
A report published [on Nov. 19] analyzed the privacy terms from 15 of the most popular new car brands that sell connected cars in Australia.
This analysis uncovered concerning practices. There are enormous obstacles for consumers who want to find and understand the privacy terms. Some brands also make inaccurate claims that certain information is not “personal information,” implying the Privacy Act doesn’t apply to that data.
Webinars/Podcasts/Interviews
Webinar: New Study Identifies Key Drivers of Customer Satisfaction and Retention in the Auto Claims and Repair Process | December 5 | CIECA
*CCC Intelligent Solutions Shares Key Findings from Moments of Truth Research
The Collision Industry Electronic Commerce Association (CIECA) announced that the next CIECA Webinar will be held on Thursday, December 5 at 11 am PST/1 pm CST/2 pm EST: “New Study Identifies Key Drivers of Customer Satisfaction and Retention in the Auto Claims and Repair Process.”
The one-hour live broadcast will feature Maryling Yu, vice president of marketing at CCC Intelligent Solutions (CCC), a leading cloud platform powering the P&C insurance economy.
During the webinar, attendees will learn more about the findings, including the top three takeaways from the study for repairers:
- Transparency Over Speed: A transparent, detailed explanation of repair needs was the top moment of truth influencing repair satisfaction, outweighing the speed of repairs.
- External Factors: Satisfaction is influenced by factors outside repairers’ control, such as whether the insurer provides clear communications about the claims process, as well as a satisfying initial contact after the accident.
- Frequency of contact being “just right” is key: 88% of respondents wanted at least weekly updates, with nearly half expecting communication every 2-3 days.
All collision industry stakeholders, including CIECA members and non-members, are invited to attend the presentation.