1. Auto Insurers Grapple with Profitability Woes Amid Soaring Claims Costs

2. Auto Insurers Faced with Staggering 112 Loss Ratio, Underwriting Losses Reach 12 Cents on the Dollar

Insurance companies dramatically reduced their marketing and advertising spend in 2022 and continued this trend in 2023, as there was little point in actively attracting consumers who were already shopping for new policies due to rate increases.

9. UM and UIM Coverages: A Growing Opportunity for Insurers as Minimum Limits

Insurers should be prepared for UIM coverages to be accessed more frequently, as not-at-fault carriers will increasingly see limits exhausted with the at-fault party's carrier, and the claim will come back to them to handle the rest.

3. Insurers Adopt "Sledgehammer Approach" to Rate Revisions, Abandoning Targeted Changes

Some states were considered healthier and closer to profitability, while states like New Jersey, New York, and California were expected to see continued rate and underwriting activity due to poor performance.

4. Auto Insurance Shopping Reaches All-Time High as Consumers React to Rate Hikes

Unlike in a normal market where shopping increases but new policy purchases don't grow at the same rate, consumers in 2023 were more likely to switch policies when shopping for insurance.