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10.Beyond Claims History: Innovations in Sourcing Prior Loss Data for Enhanced Underwriting

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Prior claims history, both at-fault and not-at-fault (where permitted), is highly predictive of future insurance loss, and insurers should explore innovations in sourcing this data from other places to improve their underwriting.

 

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.
 

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.
 

5. The New Normal: How Remote Work is Reshaping Commutes and Auto Insurance Risk

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.
 

7. ADAS: A Double-Edged Sword for Auto Insurers, Reducing Frequency but Increasing Severity

ADAS-equipped vehicles can be more expensive to repair due to costly parts that need replacement, increasing severity.
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