State of Insurance Rating COVID-19 Weather Report #9

May 26, 2020 Laird Rixford

 

ITC will continue to provide these ongoing weekly weather reports throughout this situation. These reports provide agencies and carriers a general baseline of their operations.

After talking with a few agents, there was a consensus. The long weekend was well needed to recharge our batteries after two months of lockdowns, shelter in place, and closed businesses.

In reviewing last week’s numbers, it seems like consumers are ready for things to get back to normal.

Week of 5/18

Last week, quoting and rating volume was 7.6% below ITC’s baseline rating expectations. A nice improvement from the prior week, where it was 10% below expectations.

Additionally, the Friday before Memorial Day is traditionally a slower day. This year it was even slower as people decided to start the weekend early. (It happened around insurance offices around the nation as well.) Without the lower rating on Friday (-12.6), rating would have only been 6% below expectations.

Quoting performance week of 5/18

State of Rating by State

Numbers across all states continued to improve. In states that persist with stricter ordinances, rating continues to be well below the national average. In states that have reopened, rating levels have returned to near or above expectations.

State

Reopening Date

Variance from Expectation

 Arizona

May 15, 2020

-16.1%

California

Indefinite

-13.7%

Georgia

April 30, 2020

33%

Illinois

Indefinite

-33%

Indiana

May 1, 2020

-9.7%

Nevada

May 9, 2020

-20%

Oklahoma

April 24, 2020

17.4%

Tennessee

April 29, 2020

7.3%

Texas

April 30, 2020

-0.1%

Washington

May 31, 2020

-33.7%

 

The Forecast

ITC predicts that quoting volumes will continue to remain below the expected quote activity, settling 5% below quoting expectations.

More positive news is starting to filter through the media. A better understanding of infection and mortality rates. A successful reopening of the economy and hopes of a vaccine. Similarly, the news in this weather report will continue to improve.

The impact on insurance has not gone unnoticed. But, it is also important to acknowledge that insurance is somewhat of a protected business.

States and lienholders require consumers to hold insurance on their assets. It is not a “nice-to-have” discretionary spend. It is a hard requirement.

Many other sectors of our economy do fall within that category. They need insurance too. So, should those businesses falter, there will be an echo effect within the insurance industry.

We must do everything we can to prevent this from happening. How can we help our insureds navigate the complicated world of insurance while keeping them covered and financially stable at the same time?

Education.

Through the use of automated marketing platforms, CRMs, and agency management systems, we can share regular guidance and expertise with clients during these difficult times.

How are you helping your clients through all of this? Leave your suggestions and ideas in the comments below.

Next Report

Stay tuned as next week’s report will include the following:

  • A recap of this week.
  • A reader request, an analysis of impact by age of insured.

Comment below on any other data metrics you want to see in this report series.

Methodology

ITC maintains a regular baseline of expected quoting volume for TurboRater. We also maintain an expectation of submission and traffic upon the Insurance Website Builder, TurboRater for Websites, and TurboRater Rate Engine API platforms. 

We built the baseline on a model that reflects multi-year historical performance, usage of the platform, state demographics, and market conditions using data from ITC’s business intelligence and analytical products.

The margin of error for the agency quoting and rating baseline averages less than 1.5%, as calculated daily. The data analysis excludes rates returned without a premium.

The margin of error for the online properties and submission volumes averages less than 5% as calculated weekly.

All models only attempt to predict Monday through Friday. Agency operations over a weekend have too much variability.

About the Author

Laird Rixford

As CEO, Laird Rixford is responsible for providing strategic direction and leadership for the company. Rixford has a proven executive management track record and has more than 20 years of experience in entrepreneurship and insurance technology. An expert in insurance technology and marketing, Laird is a recognized public speaker and has presented at industry events across the United States.

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