Key Insights for the Road Ahead: Top 5 Auto Insurance Trends of 2023
Insurers can also re-underwrite policies based on prior loss history and other factors.
ADAS-equipped vehicles can be more expensive to repair due to costly parts that need replacement, increasing severity.
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.
The rise in risky driving behavior may be attributed to less congested roadways, which create opportunities for drivers to drive faster and more aggressively than they used to.
Insurers will need to tune their pricing models and go through a learning curve to properly price EVs due to their fundamental differences from traditional combustion engine vehicles.
