U.S. Auto Insurance Trends Report Highlights New Generational Risks in Drivers and Vehicles that Continue to Contribute to Higher Claim Frequencies

PR Newswire06-20

2024 LexisNexis® U.S. Auto Insurance Trends Report shares insights for insurers to help benchmark future rating decisions with today's trend data, evolve against new risk segments and navigate the ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2444210866?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/01KXQuhJOGPtjWIHAhFNFQ--~B/aD0yOTU7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/prnewswire.com/489e4ef5aec2ee5c52dd25f736e051fc","is_english":true,"pubTime":"2024-06-20 22:00","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2444210866","market":"us","top_or_hot":-1,"title":"U.S. Auto Insurance Trends Report Highlights New Generational Risks in Drivers and Vehicles that Continue to Contribute to Higher Claim Frequencies","media":"PR Newswire","content":"<div>\n<p>2024 LexisNexis® U.S. Auto Insurance Trends Report shares insights for insurers to help benchmark future rating decisions with today's trend data, evolve against new risk segments and navigate the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/u-auto-insurance-trends-report-140000317.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>U.S. Auto Insurance Trends Report Highlights New Generational Risks in Drivers and Vehicles that Continue to Contribute to Higher Claim Frequencies</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nU.S. Auto Insurance Trends Report Highlights New Generational Risks in Drivers and Vehicles that Continue to Contribute to Higher Claim Frequencies\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-20 22:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/u-auto-insurance-trends-report-140000317.html><strong>PR Newswire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>2024 LexisNexis® U.S. Auto Insurance Trends Report shares insights for insurers to help benchmark future rating decisions with today's trend data, evolve against new risk segments and navigate the ...</p>\n\n<a href=\"https://finance.yahoo.com/news/u-auto-insurance-trends-report-140000317.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0949170772.SGD","symbol_name":"Blackrock Global Equity Income A6 SGD-H","start_time":0,"source_url":"https://finance.yahoo.com/news/u-auto-insurance-trends-report-140000317.html","article_id":"2444210866","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/01KXQuhJOGPtjWIHAhFNFQ--~B/aD0yOTU7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/prnewswire.com/489e4ef5aec2ee5c52dd25f736e051fc"],"rights":{"source":"yahoofinance","url":"https://finance.yahoo.com/news/u-auto-insurance-trends-report-140000317.html","rn_cache_url":null,"customStyle":"img, svg { display: none !important; }","selectors":"article","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2444210866","pubTimestamp":1718892000,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"2024 LexisNexis U.S. Auto Insurance Trends Report shares insights for insurers to help benchmark future rating decisions with today's trend data, evolve against new risk segments and navigate the road to profitability. ATLANTA, June 20, 2024 /PRNewswire/ --Today, LexisNexis Risk Solutions released its 2024 U.S Auto Insurance Trends Report, which aggregates annual market data about consumer driving patterns, auto insurance shopping trends, claim frequency and severity, and consumer responses to rate increases to help insurance carriers better understand the evolving trends impacting the U.S. auto insurance industry.Risky driving behavior rises among younger demographics as distracted driving violations by Gen Z increased 24% from 2022 and a staggering 66% in comparison to 2019.High claim severities persist due to parts and labor shortages along with rising attorney involvement, with 93% of claimants who sought legal counsel likely to retain services in the future.Consumer dissatisfactio","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0949170772.SGD":"Blackrock Global Equity Income A6 SGD-H","ICE":"洲际交易所","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","SGXZ23171101.USD":"NIKKO AM SHENTON GLOBAL OPPORTUNITIES (USD) ACC","BK4585":"ETF&股票定投概念","LU0738911758.USD":"Blackrock Global Equity Income A6 USD","RELX":"Relx PLC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","BK4588":"碎股","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","BK4123":"调查和咨询服务","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","SG9999004303.SGD":"Nikko AM Shenton Global Opportunities SGD","BK4112":"金融交易所和数据","LU0661504455.SGD":"Blackrock Global Equity Income A5 SGD-H","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD"},"translate_title":"美国汽车保险趋势报告强调了驾驶员和车辆中的新一代风险，这些风险继续导致索赔频率上升","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ICE":1,"RELX":0.9},"content_text":"2024 LexisNexis® U.S. Auto Insurance Trends Report shares insights for insurers to help benchmark future rating decisions with today's trend data, evolve against new risk segments and navigate the road to profitability\nATLANTA, June 20, 2024 /PRNewswire/ -- Today, LexisNexis® Risk Solutions released its 2024 U.S Auto Insurance Trends Report, which aggregates annual market data about consumer driving patterns, auto insurance shopping trends, claim frequency and severity, and consumer responses to rate increases to help insurance carriers better understand the evolving trends impacting the U.S. auto insurance industry. \nKey takeaways\n\nRisky driving behavior rises among younger demographics as distracted driving violations by Gen Z increased 24% from 2022 and a staggering 66% in comparison to 2019. \nHigh claim severities persist due to parts and labor shortages along with rising attorney involvement, with 93% of claimants who sought legal counsel likely to retain services in the future.\nConsumer dissatisfaction around total loss remains high, as roughly half (46%) of auto insurance consumers note frustration with a lengthy claims process.\nAuto insurers are taking an aggressive approach to profitability challenges with an unprecedented 14% year-over-year rate increase in 2023, improving the combined loss ratio to 105i%, a 7-point improvement over 112%ii in 2022.\nConsumers are responding in a big way as elevated rate increases have led to record auto insurance policy shopping and switching levels, with new policies increasing by 6.2% in 2023. Consumer retention rates dropped from 83% to 80%, indicating there may be a need for insurers to focus on their existing portfolios and take steps to update their underwriting practices over the course of 2024.\nDiffering driving experiences in electric vehicles (EVs) have contributed to higher and more severe claims than internal combustion engine (ICE) vehicles. In 2023, claim frequency and severity for EVs were 17% and 34% higher, respectively, than traditional segments.\n\n\"Auto insurers are navigating a dynamic and challenging market environment in 2024. For their part, consumers are displaying more unpredictable driving and policy shopping behavior, and increasingly switching carriers to find better rates,\" said Adam Pichon, senior vice president of global analytics, insurance, LexisNexis Risk Solutions. \"It is crucial for insurers to balance market acquisition and retention with rate adequacy and utilize data-driven insights to help manage risk and maintain profitability to be set up for continued success as the market begins to soften.\"\nGen Z drivers and EV technology bring newfound risk \n\nBoth major speeding violations (up 10% from 2022-2023, up 36% since 2019) and minor speeding violations (up 16% from 2022-2023, up 15% since 2019) continue to increase. \nDistracted driving is more prevalent among younger drivers, especially Gen Z. From 2022-2023, violations for the age group increased by 24% and, compared to 2019 figures, have risen 66%.\nDistracted driving across all age demographics rose 10% from 2022-2023. \nIn 2023, EV sales grew 54% compared to Light Duty Vehicles (LDVs) sales growth of 13%iii. The total number of EVs insured grew by 40% to 3.9 million in 2023, while the number of private passenger vehicles (PPAs) insured grew by only 1.2% in the same period, to a total of 265 million.\nRegarding consumer EV shopping behavior, 24% of new EV buyers shopped around for lower rates on their auto insurance policies in 2023, significantly higher than the 19% of new PPA buyers that shopped for coverage last year.\n\n\n\n\nClaim severity and complexity continue to rise\n\nClaim severity continues to challenge the insurance industry as claims severities have steadily trended upward since the pandemic. Compared to 2020, bodily injury has risen by 20%, along with severity as material damage has increased by 47%.\nAttorney involvement has helped contribute to the rise in claims costs. Over half (51%) of claimants who hired an attorney received a higher settlement amount. This activity is most prevalent following an auto accident, as 85% of claimants were approached by one attorney and 60% by more than one.\nThe time required to settle a claim is the highest determinant of customer satisfaction, followed by the number of people and touches needed to resolve the claim.\nIn 2023, over a quarter (27%) of collision claims were deemed total losses, requiring payouts and consumers to replace a vehicle or find alternate transportation.  \n\nProfitability remains a challenge against heightened shopping activity   \n\nDespite overall combined ratio improvements in 2023, insurers are still working towards profitability in many states with additional rate increases being enacted across the country.   \nIn response to the record-setting rate increases (9% increase in 2022 and 14% in 2023), traditionally stable consumers have taken to the market to shop their coverage. Among consumers who had auto insurance at the end of 2023, 41% shopped at least once for a new policy. Overall, shopping increased 4.7% in 2023, with many consumers switching carriers, driving new policies up 6.2% in the same period.\nOver 2022-2023, the number of drivers within a policy increased by 5%, pointing to changing risk profiles that may be overlooked during renewal periods and potentially indicating consolidation in households.\n\nDownload the 2024 LexisNexis Risk Solutions Auto Insurance Trends Report. \nAbout LexisNexis Risk SolutionsLexisNexis® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. 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-based analytics and decision tools for professional and business customers. For more information, please visit www.risk.lexisnexis.com, and www.relx.com.\nMedia Contacts:Chas StrongLexisNexis Risk SolutionsPhone: +1.706.714.7083Charles.Strong@lexisnexisrisk.com\ni Copyright @2024, S&P Global Market Intelligence (and its affiliates, as applicable)ii LexisNexis Risk Solutions Internal Analysisiii Argonne National Laboratory\n\n\n\n\n\n View original content to download multimedia:https://www.prnewswire.com/news-releases/us-auto-insurance-trends-report-highlights-new-generational-risks-in-drivers-and-vehicles-that-continue-to-contribute-to-higher-claim-frequencies-302177930.html\nSOURCE LexisNexis Risk Solutions","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2444210866"}