LexisNexis® Insurance Demand Meter Shows Record Growth as U.S. Consumer Auto Insurance Shopping and New Policy Growth Hit "Nuclear" Volumes for the First Time in the Same Quarter
The LexisNexis® Insurance Demand Meter for Q2 2024 shows record growth in U.S. consumer auto insurance shopping and new policy volumes, both registering as 'Nuclear' for the first time in the same quarter. Key highlights include:
- 16.1% year-over-year shopping growth
- 19.5% increase in new policies
- Record 42.3% annual shop rate
- 21% of auto policies written in the last 12 months
- 38% growth in direct-to-consumer channels
Factors driving this growth include increasing auto and home insurance premiums, increased marketing by insurance companies, and consumers' heightened price sensitivity. The home insurance market's rate increases are also influencing auto insurance shopping patterns. Experts anticipate continued high shopping activity, despite potential impacts from the Summer Olympics and U.S. presidential election on advertising costs and effectiveness.
Il LexisNexis® Insurance Demand Meter per il secondo trimestre del 2024 mostra una crescita record nelle ricerche di assicurazione auto da parte dei consumatori negli Stati Uniti e nei volumi di nuove polizze, entrambi registrati come 'Nucleare' per la prima volta nello stesso trimestre. I punti salienti includono:
- 16,1% di crescita annuale delle ricerche
- 19,5% di aumento nelle nuove polizze
- Record di 42,3% di tasso di ricerca annuale
- 21% delle polizze auto emesse negli ultimi 12 mesi
- 38% di crescita nei canali diretti ai consumatori
I fattori che guidano questa crescita includono l'aumento dei premi per le assicurazioni auto e casa, l'aumento del marketing da parte delle compagnie assicurative e una maggiore sensibilità al prezzo da parte dei consumatori. Gli aumenti dei tassi nel mercato delle assicurazioni sulla casa stanno influenzando anche i modelli di ricerca per l'assicurazione auto. Gli esperti prevedono un'attività di ricerca ancora elevata, nonostante i potenziali impatti delle Olimpiadi estive e delle elezioni presidenziali statunitensi sui costi e sull'efficacia della pubblicità.
El LexisNexis® Insurance Demand Meter para el segundo trimestre de 2024 muestra un crecimiento récord en la búsqueda de seguros de automóviles por parte de los consumidores en EE. UU. y en los volúmenes de nuevas pólizas, registrándose ambos como 'Nuclear' por primera vez en el mismo trimestre. Los aspectos más destacados incluyen:
- 16.1% de crecimiento interanual en las búsquedas
- 19.5% de aumento en nuevas pólizas
- Tasa de búsqueda anual récord de 42.3%
- 21% de las pólizas de automóvil emitidas en los últimos 12 meses
- 38% de crecimiento en canales directos al consumidor
Los factores que impulsan este crecimiento incluyen el aumento de las primas de seguros de automóviles y viviendas, un mayor marketing por parte de las compañías de seguros y una sensibilidad al precio más alta entre los consumidores. Los aumentos de tarifas en el mercado de seguros de hogar también están influyendo en los patrones de búsqueda de seguros de automóviles. Los expertos anticipan una actividad de búsqueda alta continua, a pesar de los posibles impactos de los Juegos Olímpicos de verano y de las elecciones presidenciales en EE. UU. en los costos y la efectividad de la publicidad.
2024년 2분기 LexisNexis® 보험 수요 계량기는 미국 소비자의 자동차 보험 쇼핑 및 신규 정책의 기록적인 성장을 보여주며, 두 항목 모두 처음으로 동일한 분기에서 '핵심'으로 등록되었습니다. 주요 하이라이트는 다음과 같습니다:
- 전년 대비 16.1%의 쇼핑 성장
- 19.5%의 신규 정책 증가
- 기록적인 42.3%의 연간 쇼핑 비율
- 지난 12개월 동안 서면된 자동차 보험의 21%
- 소비자 직접 채널에서 38% 성장
이 성장을 이끄는 요인에는 자동차 및 주택 보험 프리미엄의 증가, 보험 회사의 마케팅 증가, 그리고 소비자의 가격 민감도가 높아짐이 포함됩니다. 주택 보험 시장의 요금 인상도 자동차 보험 쇼핑 패턴에 영향을 미치고 있습니다. 전문가들은 여름 올림픽과 미국 대통령 선거가 광고 비용과 효과성에 미칠 잠재적 영향을 고려할 때에도 여전히 높은 쇼핑 활동이 지속될 것으로 예상하고 있습니다.
Le LexisNexis® Insurance Demand Meter pour le deuxième trimestre 2024 montre une croissance record dans les recherches des consommateurs américains pour l'assurance automobile et dans le volume des nouvelles polices, les deux étant enregistrés comme 'Nucléaire' pour la première fois dans le même trimestre. Les points forts comprennent :
- 16,1 % de croissance annuelle des recherches
- 19,5 % d'augmentation des nouvelles polices
- Un taux de recherche annuel record de 42,3 %
- 21 % des polices d'assurance automobile souscrites au cours des 12 derniers mois
- 38 % de croissance dans les canaux directs aux consommateurs
Les facteurs à l'origine de cette croissance incluent l'augmentation des primes d'assurance automobile et habitation, un marketing intensifié par les compagnies d'assurance et une sensibilité accrue des consommateurs aux prix. L'augmentation des taux sur le marché de l'assurance habitation influence également les comportements de recherche en matière d'assurance automobile. Les experts prévoient que l'activité de recherche restera élevée, malgré les impacts potentiels des Jeux Olympiques d'été et des élections présidentielles américaines sur les coûts de publicité et leur efficacité.
Der LexisNexis® Insurance Demand Meter für das 2. Quartal 2024 zeigt ein Rekordwachstum im Bereich der Kaufanfragen für Kfz-Versicherungen von US-Verbrauchern sowie bei neuen Policen, wobei beide erstmalig im selben Quartal als 'Nuklear' registriert werden. Zu den wichtigsten Highlights zählen:
- 16,1% Wachstum im Jahresvergleich bei den Anfragen
- 19,5% Zuwachs bei neuen Policen
- Rekord von 42,3% jährlicher Anfragequote
- 21% der Autopolices wurden in den letzten 12 Monaten abgeschlossen
- 38% Wachstum im direkten Verbrauchermarkt
Die Faktoren, die dieses Wachstum antreiben, sind steigende Prämien für Auto- und Hausversicherungen, verstärktes Marketing durch Versicherungsunternehmen sowie eine erhöhte Preissensibilität der Verbraucher. Auch die Erhöhungen der Tarife im Heimversicherungsmarkt beeinflussen das Kaufverhalten für Kfz-Versicherungen. Experten erwarten eine weiterhin hohe Anfrageaktivität, trotz möglicher Auswirkungen der Olympischen Sommerspiele und der US-Präsidentschaftswahlen auf die Werbekosten und deren Effektivität.
- Record 16.1% year-over-year growth in auto insurance shopping for Q2 2024
- 19.5% increase in new auto insurance policies for Q2 2024
- Annual shop rate reached a record 42.3%
- 21% of auto policies-in-force were written in the last 12 months
- Direct-to-consumer distribution channels grew by 38%
- Captive agent and independent agent channels grew by 2.4% and 8.9% respectively
- New policy volumes slightly decreased from May to June 2024
- Anticipated increase in media advertising costs due to Summer Olympics and U.S. presidential election
Insights
The record-breaking 16.1% increase in auto insurance shopping and 19.5% growth in new policies for Q2 2024 signify a seismic shift in the U.S. insurance landscape. This "nuclear" growth is driven by rising premiums and increased carrier marketing, creating a perfect storm for policy churn.
The 42.3% annual shop rate is unprecedented, with some states exceeding 50%. This volatility presents both opportunities and risks for insurers. While it allows for market share gains, it also increases customer acquisition costs and potentially reduces long-term profitability if retention rates suffer.
The 38% growth in direct-to-consumer channels versus modest growth in agent-based channels indicates a significant shift in consumer preferences, potentially reshaping distribution strategies industry-wide.
The surge in insurance shopping and new policy growth presents a double-edged sword for insurers' financials. While increased policy sales can boost top-line revenue, the costs associated with acquiring new customers and potential underpricing risks could pressure profitability.
The fact that 21% of auto policies were written in the last 12 months suggests a significant turnover rate, which could impact long-term customer value and increase operational costs. Insurers will need to balance growth with risk management to maintain healthy combined ratios.
The correlation between home and auto insurance shopping trends indicates potential for cross-selling opportunities, which could improve customer lifetime value and operational efficiency for multi-line insurers.
The "nuclear" growth in insurance shopping presents a golden opportunity for innovative marketing strategies. With a record 42.3% annual shop rate, insurers must focus on targeted, data-driven campaigns to stand out in a crowded market.
The 38% growth in direct-to-consumer channels underscores the importance of digital marketing and user-friendly online platforms. However, the continued growth in agent channels (2.4% for captive, 8.9% for independent) suggests a multi-channel approach remains crucial.
As media costs rise due to the Olympics and U.S. elections, insurers must optimize their marketing mix and explore alternative, cost-effective channels to maintain growth momentum without sacrificing profitability.
Key Takeaways
U.S. consumer insurance shopping clocked in at 'Nuclear' on the Insurance Demand Meter, as the quarterly year-over-year shopping growth rate grew16.1% for Q2 2024 (up from last quarter's2.9% increase).- Quarterly year-over-year growth for new policies is also "Nuclear," with a
19.5% increase for Q2 2024 (up from8.7% last quarter). - By the end of Q2, the annual shop rate had risen to a record
42.3% , led by four states with annual year-to-date shop rates over50% (Texas , Fla., Ga., Ariz.). - At the end of the quarter,
21% of the auto policies-in-force were written in the last 12 months. - Carriers reinstated marketing and new business lead purchasing in Q2 to take advantage of rate-driven shoppers that included both non-standard and long-tenured customers. Direct-to-consumer (non-agent based) distribution channels grew
38% , while captive agent and independent agent channels grew2.4% and8.9% , respectively. - New policy volumes dipped slightly from May to June, causing shopping growth to outpace new policy growth in June for the first time since April 2023.
Dual Impact: Home Insurance Shopping Influences the Auto Market
With more than half of auto insurance shoppers owning a home or condo, rate increases now taking effect in the home insurance market are helping fuel shopping and switching for many consumers. LexisNexis Risk Solutions analysis based on S&P insurance rate filing data suggests that home and auto market rates have increased similarly for the past 12 months[i]. Shopping frequency patterns for both home and auto insurance consumers have also followed a similar trajectory. In fact, a recent LexisNexis Risk Solutions consumer study[ii] found that nearly four in 10 respondents with an existing home insurance policy are shopping for their insurance regularly.
"In 2023, we highlighted that certain regions or states, such as
Looking Ahead
After two years of stagnant growth in the number of policies-in-force, the second quarter of this year's increased shopping and purchasing activity approaches near-historic levels. Despite possible fluctuations in shopping levels, recent trends indicate that new policy growth could maintain record volumes through the next quarter.
"We anticipate that the convergence of the Summer Olympics and the
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LexisNexis Insurance Demand Meter
The LexisNexis® Insurance Demand Meter is a quarterly analysis of shopping volume and frequency, new business volume and related data points. LexisNexis Risk Solutions offers this unique market-wide perspective of consumer shopping and switching behavior based on its analysis of billions of consumer shopping transactions since 2009, representing nearly
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,
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ii What Homeowners Want: Understanding their insurance preferences and behaviors, LexisNexis Risk Solutions, ©2024
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FAQ
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