In 2022, U.S. auto insurers continued to navigate the perfect storm we saw brewing in 2021: record levels of inflation, supply chain shortages, a shrinking talent pool and increased levels of accident severity―all exacerbated by regulatory pushback on rate increases. This collision course transformed a difficult market into a real struggle for profitability.Challenges escalated quarter by quarter in 2022, resulting in billions of dollars in losses. The harsh economic market forced auto insurers to closely manage costs and look for opportunities to take rate. An early drop in marketing spend reduced shopping events in the first half of the year. But as rates rose in certain markets over the course of the year, the industry saw a late-year boost in shopping and switching.

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