2025 LexisNexis® U.S. Auto Insurance Trends Report

THE RISK RIGHT NOW:

*Market Shifts Shaping U.S. Auto Insurance*

2025 LexisNexis® U.S. Auto
Insurance Trends Report

The Risk Right Now: Discover the Market Shifts Shaping the U.S. Auto Insurance Industry.Contents

TREND 1

Rate increases slow
as the industry finds
rate adequacy

TREND 2

Auto policy shopping
and switching hit
record levels

TREND 3

Driving violations continue to escalate

TREND 4

Transition risks present new ways to segment business

TREND 5

Claim cycle times improve against elevated attorney representation rates

Reacting to risk
in real time

About LexisNexis® Risk Solutions

LexisNexis® Risk Solutions harnesses the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses across multiple industries and governmental entities reduce risk and improve decisions to benefit people around the globe. 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-based analytics and decision tools for professional and business customers. For more information, please visit www.risk.lexisnexis.com and www.relx.com.

Overview

Improved loss ratios, strong premium growth and lower retention rates characterized the U.S. auto insurance industry in 2024. Our internal analysis shows that while a number of insurers returned to profitability as the market softened, record levels of policy shopping and switching, attorney representation, claims severity and rising driving violations contributed to a dynamic environment.

To help insurers keep up with this fast-shifting landscape, LexisNexis® Risk Solutions identified five key auto insurance trends for 2025:

Trend 1: Rate increases slow as the industry finds rate adequacy

Trend 2: Auto policy shopping and switching hits record levels

Trend 3: Driving violations continue to escalate

Trend 4: Transition risks present new ways to segment business

Trend 5: Claim cycle times improve against elevated attorney representation rates

Unless otherwise cited, all data presented herein is proprietary to LexisNexis® Risk Solutions.

This report analyzes each trend in detail and provides insurers with insights to help:

Make more strategic investments in a dynamic competitive environment.
Understand the drivers of rate shopping and attorney involvement in claims.
Actively manage growth opportunities.
Identify new and shifting sources of risk.