ATLANTA, Aug. 5, 2020 /PRNewswire/ -- LexisNexis® Risk
Solutions introduces its U.S. Auto Insurance Trends Report, which
aggregates annual market data about auto insurance shopping,
underwriting and claims. The report explores how technology is
increasingly shaping the auto insurance lifecycle. It includes
recommendations for how insurers can leverage these trends to
enhance their quoting, underwriting and claims processes in a
rapidly evolving market.
"This report and the 2019 data presented in it serves as an
important benchmark for auto insurance carriers as they continue to
develop and enhance their operating plans while managing through
unprecedented societal and economic change," said Adam Pichon, vice president and general manager,
auto insurance, LexisNexis Risk Solutions. "Given how the pandemic
has significantly impacted driving habits, it's more important than
ever for carriers to leverage available technology designed to
improve customer experience and regularly evaluate driving trends
to identify deviations in order to better anticipate future risks
and proactively adjust underwriting decisions."
The auto market data in this report was compiled with data from
2019 to help carriers identify and determine how they can best
evolve their offerings, increase profitability, manage their
business risks, improve their customer relationships and grow their
books of business. For example, the report reveals that major
speeding violations are up consistently 20 percent since 2015 and
these violations have climbed to a peak increase of 25 percent
nationally. It also identifies generational trends related to
speeding violations and distracted driving. The report illustrates
the importance of having comprehensive data about individual
policyholders and their vehicles to provide accurate pricing.
Identifying Generational Trends to Price
Accordingly
To explore the relationship between speeding
violations and driver age, LexisNexis Risk Solutions delineated
drivers into five generational groupings (Generation Z,
Millennials, Generation X, Baby Boomers and Traditionalists). All
five age groups had an increase in major speeding violations, such
as super speeding, with the majority having greater than 30 percent
growth since 2015. Millennials represented 55 percent of all
speeding violations. Traditionalists (ages 71+) represent the only
group where speeding violations have continued to increase over the
past two years, reaching the highest relative growth among all
generational groups in 2019.
Despite the fact that major speeding violations were up from
2015-2019, the report identifies that speeding violations in
aggregate (both major and minor combined) have declined nationally
since 2017. This decline, primarily in minor violations, is
possibly due to an increased use of driving technologies, including
interventions from GPS navigation apps that can help drivers adjust
their speed in real-time.
Vehicle-Centric Trends
A LexisNexis internal analysis
shows that about 76 percent of all 2019 vehicles are equipped with
at least one advanced driver-assistance systems (ADAS) feature.
Insurers need to pay more attention to the vehicle and its plethora
of information, because ADAS and other vehicle features can have a
significant influence over both driver behavior and vehicle
capabilities. The same analysis found that vehicles that had been
in an accident are approximately 10 percent more likely to be
involved in another. It also found that the future claim frequency
for vehicles that had been in four or more accidents was 23 percent
higher than for vehicles that hadn't experienced an accident.
Distracted Driving is Becoming the New DUI
While
driving under the influence of alcohol has always been a cause of
many major driving violations, there has been a continued decline
in alcohol-related reported violations since 2015. However,
distracted driving violations have seen gradual increased trends in
recent years and were associated with a significant spike in
frequency of events in 2019. Consumers' hyper-connectivity and
real-time alerts and distractions such as texting continue to be an
issue that could potentially rival DUI violations as a factor in
road safety, and insurance rating.
The Power of Real-Time Driving Data
While technology
brings its fair share of challenges with smartphone distractions,
it also enables tools that can be used to help reduce distracted
driving and facilitate good driving rewards through telematics and
usage-based insurance (UBI) programs. With the growing number of
connected vehicles on the road, including the nearly one in three
vehicles expected to be telematics-ready by 2023, promotion and
adoption of UBI programs will also likely increase given the cost
saving potential and ease of use. LexisNexis internal analysis also
shows that combining mileage data with basic driving behavior
attributes can generate up to seven times more predictability of
driving risk.
"Having access to real-time telematics data, along with vehicle
data and trended insights presents new opportunities for insurers
to leverage technology, provide more personalized services and be a
trusted partner to their customers," said Pichon. "As auto
insurance carriers continue to recognize how technology is
impacting all aspects of driving habits and the auto insurance
lifecycle, we're excited for its potential to help them make more
informed decisions and position themselves for long-term
success."
The trends identified in the report also highlight opportunities
for auto insurance carriers to enhance quoting, underwriting and
claims resolution in this rapidly evolving market. Disruption and
unexpected market conditions (like COVID-19) underscore the
importance for auto insurance carriers to embrace technology and
understand the role and new opportunities it presents.
To download the LexisNexis Auto Insurance Trends Report, click
here.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced
analytics to provide insights that help businesses and governmental
entities reduce risk and improve decisions to benefit people around
the globe. We provide data and technology solutions for a wide
range of industries including insurance, financial services,
healthcare and government. 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 and analytics for professional and business
customers across industries. For more information, please
visit www.risk.lexisnexis.com and www.relx.com.
Media Contacts:
Rocio Rivera
LexisNexis Risk Solutions
Phone: +1.678.694.2338
rocio.rivera@lexisnexisrisk.com
Mollie Holman
Brodeur Partners for LexisNexis Risk Solutions
Phone: +1.646.746.5611
mholman@brodeur.com
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SOURCE LexisNexis Risk Solutions