MediaAlpha, Inc. (NYSE:MAX) Q4 2022 Earnings Call Transcript

Steve Yi: Yeah. I think this is more of a speculation that you are seeing in the marketplace more than anything else that we are seeing in our marketplace. It’s that — because these pricing increases that consumers will be faced with are pretty unprecedented. I mean these pricing increases are the highest that the industry has seen in about 40 years and because of the magnitude of these increases in the auto insurance segment, that’s the bundlers, which are often referred to as the Robinsons , which is a very profitable and desirable segment for the entire industry, may be up for grabs because people who are normally bundling their auto and home policies and willing to stick those together or wanting to keep those two together, may actually break those apart and shop for a separate auto insurance carrier because of the magnitude of the rate increases that they are seeing.

And so I think that will be a really interesting dynamic right, to see unfold because that Robinsons segment is typically one that doesn’t shop around very much, which is one of the reasons that they are so attractive to P&C carriers. And if the pricing increases that we are seeing now, which really, again, are unprecedented, really starts to put this segment back into the marketplace to shop for auto insurance rates and they show a willingness to really break apart this auto home bundle. I think that will really lead to a very interesting dynamic and some pricing increases as this very highly desirable consumer segment really comes into play for the first time.

Mike Zaremski: Interesting. Appreciate the color.

Steve Yi: Sure.

Operator: And thank you, ladies and gentlemen. That does conclude our call. Thank you for your participation and you may now disconnect.