Shipping Cost Increases,
New policy growth fell 7.1% quarter-over-quarter versus Q2 2021 as insurers continue to pare back their advertising spending, although this was an improvement from the 11% year-over-year decline seen in Q1 2022.
“A combination of factors – the increase in carriers due to the impact of profit; the decrease in commercial income; consumers struggling with inflation and fewer dollars to spend; the shortage of vehicles and the rise in interest rates – these are increasing at the moment, leaving the insurance industry to be difficult. continue to fluctuate,” he said
Identifying Potential Growth Factors Is Important For Insurance
For the first time since the start of the pandemic, middle-aged consumers (35-46) made more purchases than any other age group, possibly due to rising prices and the cost of renovations. This comes after several segments in the list of young consumers (16-35) who are leading the way due to Federal stimulus checks and tax deadlines that have been changed due to the pandemic.
“This middle age is traditionally a profitable segment for insurers,” Pichon said. “Even in these difficult times, carriers that can successfully target this age group gain market share.”
When Will the Uninsured Return to the Market?
When carriers began requiring payments at the end of 2021 after the COVID-related and government-sponsored approval process began to wane, many buyers left the market — meaning they abandoned their policies between the first month and the next. . Our findings show that this metric has returned to the levels we saw in previous years.
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“This period could reach 2023, which carriers will need to consider as they look forward to the second half of 2022,” he said.
In addition to questions about uninsured drivers re-entering the market, other factors that should be monitored in the next two quarters will be the effect of the increase in premium prices and the expected increase in car sales compared to new areas.
“Recently, purchasing activity has started to slow down and start slowly for the year and the second half of 2021,” Pichon said. “The first half of 2021 had very high new sales, which decreased gradually in the second half of the year, so now we are starting to slow down as we deal with the problem. first half of the year, but steady growth may come later when more buyers they’re re-entering the market.”
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About LexisNexis Insurance Demand Meter
The LexisNexis The Insurance Demand Meter is a quarterly analysis of purchase volume and frequency, new business volume and related information. LexisNexis Risk Solutions provides a unique view of the entire consumer market and changes behavior based on its analysis of billions of consumer transactions since 2009, which represent approximately 90% of the entire universe of insurance products.
LexisNexis® Risk Solutions uses the power of data and advanced analytics to deliver insights that help businesses and government agencies reduce risk and improve decisions for the benefit of people around the world. We provide data and technology solutions for a variety of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta,
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