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LexisNexis® U.S. Insurance Demand Meter Reaches "Nuclear" as U.S. Consumer Auto Insurance Shopping, New Policy Growth Rates Continue to Surge

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LexisNexis Risk Solutions reports unprecedented levels of auto insurance shopping and new policy volumes in Q3 2024. Auto insurance shopping grew 31.2% year-over-year, while new policy volumes increased by 25.9%. The direct channel saw remarkable growth with 67% in shopping rates and 54% in new policies. Notable activity was observed in states like Florida (38%), Texas (33%), and Michigan (19%). Hurricane Helene temporarily impacted shopping in Florida and Georgia, though both states recovered quickly. The surge was driven by insurer-led marketing programs and rate adjustments, with 45% of U.S. policies being shopped within the past 12 months.

LexisNexis Risk Solutions riporta livelli senza precedenti di ricerca di assicurazioni auto e nuovi volumi di polizze nel terzo trimestre del 2024. La ricerca di assicurazioni auto è aumentata del 31,2% rispetto all'anno precedente, mentre i nuovi volumi di polizze sono cresciuti del 25,9%. Il canale diretto ha registrato una crescita notevole con un 67% nelle rate di ricerca e un 54% nei nuovi contratti. Attività significative sono state osservate in stati come la Florida (38%), il Texas (33%) e il Michigan (19%). L'uragano Helene ha temporaneamente impattato la ricerca in Florida e in Georgia, anche se entrambi gli stati si sono ripresi rapidamente. Questo aumento è stato guidato da programmi di marketing gestiti dagli assicuratori e da aggiustamenti delle tariffe, con il 45% delle polizze negli Stati Uniti in fase di ricerca negli ultimi 12 mesi.

LexisNexis Risk Solutions informa sobre niveles sin precedentes en la búsqueda de seguros de auto y nuevos volúmenes de pólizas en el tercer trimestre de 2024. La búsqueda de seguros de auto creció un 31,2% interanual, mientras que los nuevos volúmenes de pólizas aumentaron un 25,9%. El canal directo vio un crecimiento notable con un 67% en tasas de búsqueda y un 54% en nuevas pólizas. Se observó una actividad notable en estados como Florida (38%), Texas (33%) y Michigan (19%). El huracán Helene impactó temporalmente la búsqueda en Florida y Georgia, aunque ambos estados se recuperaron rápidamente. Este aumento fue impulsado por programas de marketing liderados por aseguradoras y ajustes de tarifas, con un 45% de las pólizas en EE. UU. siendo buscadas en los últimos 12 meses.

LexisNexis Risk Solutions는 2024년 3분기에 자동차 보험 쇼핑과 새로운 보험 계약이 전례 없는 수준에 도달했다고 보고했습니다. 자동차 보험 쇼핑은 전년 대비 31.2% 증가했으며, 새로운 정책 수량은 25.9% 증가했습니다. 직접 판매 채널은 쇼핑 비율이 67% 증가하고 신규 계약이 54% 늘어나며 놀라운 성장을 보였습니다. 플로리다 (38%), 텍사스 (33%), 미시간 (19%)과 같은 주에서 눈에 띄는 활동이 관찰되었습니다. 헬렌 허리케인은 플로리다와 조지아에서 쇼핑에 일시적인 영향을 미쳤지만, 두 주 모두 빠르게 회복했습니다. 이번 급증은 보험사 주도의 마케팅 프로그램과 요금 조정에 의해 촉발되었으며, 미국에서 45%의 보험 정책이 지난 12개월 이내에 쇼핑되었습니다.

LexisNexis Risk Solutions rapporte des niveaux sans précédent de recherche d'assurances auto et de nouveaux volumes de polices au troisième trimestre de 2024. La recherche d'assurances auto a augmenté de 31,2% par rapport à l'année précédente, tandis que les nouveaux volumes de polices ont augmenté de 25,9%. Le canal direct a connu une croissance remarquable avec 67% de taux de recherche et 54% de nouvelles polices. Une activité notable a été observée dans des États comme la Floride (38%), le Texas (33%) et le Michigan (19%). L'ouragan Helene a temporairement impacté la recherche en Floride et en Géorgie, bien que les deux États se soient rapidement rétablis. Cette hausse a été entraînée par des programmes de marketing dirigés par les assureurs et des ajustements de tarifs, avec 45% des polices américaines faisant l'objet de recherches au cours des 12 derniers mois.

LexisNexis Risk Solutions berichtet über bislang nie dagewesene Werte im Bereich der Kfz-Versicherungsanfrage und der neuen Policen im dritten Quartal 2024. Die Anfrage nach Kfz-Versicherungen stieg im Jahresvergleich um 31,2%, während neu abgeschlossene Policen um 25,9% zunahmen. Der Direktvertrieb verzeichnete ein bemerkenswertes Wachstum mit 67% bei den Anfragequoten und 54% bei neuen Policen. Bemerkenswerte Aktivitäten wurden in Bundesstaaten wie Florida (38%), Texas (33%) und Michigan (19%) beobachtet. Hurrikan Helene beeinträchtigte vorübergehend die Versicherungsanfragen in Florida und Georgia, jedoch erholten sich beide Bundesstaaten schnell. Der Anstieg wurde durch Versicherer-geführte Marketingprogramme und Tarifänderungen vorangetrieben, wobei 45% aller Policen in den USA in den letzten 12 Monaten nachgefragt wurden.

Positive
  • Record-breaking 31.2% YoY growth in auto insurance shopping
  • 25.9% increase in new auto policy volumes
  • Direct channel shopping rates jumped 67% with 54% growth in new policies
  • Independent agent carriers posted 26% shopping growth
Negative
  • Hurricane Helene caused temporary shopping declines in Florida (-17%) and Georgia (-16%)
  • Lingering negative effects on shopping in North and South Carolina
  • Rising auto and home policy costs forcing consumers to shop for alternatives

Insights

The unprecedented surge in auto insurance shopping and new policy volumes signals a significant market shift. The 31.2% year-over-year increase in shopping activity and 25.9% growth in new policy volumes indicate a highly dynamic market environment. The direct-to-consumer channel's 67% shopping growth and 54% new policy growth are particularly noteworthy.

This market behavior reflects broader economic pressures and changing consumer patterns. The high participation of traditionally stable segments (66+ demographic and long-tenured customers) suggests widespread rate pressure. The regional variations, particularly in high-growth states like Wyoming (80%) and Louisiana (54%), point to localized market opportunities and challenges.

For investors, this indicates a potential turning point in the insurance industry's profitability cycle, with carriers actively pursuing growth after a period of margin pressure. The rapid market response to marketing initiatives suggests strong pricing power and effective customer acquisition strategies.

The shift in consumer behavior patterns is remarkable, with nearly 45% of U.S. policies being shopped within a 12-month period. This unprecedented level of shopping activity represents a fundamental change in consumer loyalty dynamics and price sensitivity. The strong performance in direct channels versus traditional agency models signals an accelerating digital transformation in insurance distribution.

The regional impact of Hurricane Helene provides valuable insights into market resilience. The quick recovery in Florida and Georgia, compared to the prolonged impact in the Carolinas, demonstrates varying degrees of market adaptability to natural disasters. This geographic analysis is important for understanding market risks and opportunities across different regions.

ATLANTA, Nov. 20, 2024 /PRNewswire/ -- For the second consecutive quarter, the LexisNexis® U.S. Insurance Demand Meter recorded "Nuclear" levels of auto insurance shopping and new policy volumes, while the latter set a new record for growth since LexisNexis® Risk Solutions first began tracking U.S. insurance consumer shopping behavior more than a decade ago. Insurer-led marketing programs fueled activity among price-sensitive consumers who responded in droves to industry rate-taking. At the end of the quarter, nearly half (45%) of the U.S. policies-in-force were shopped at least once in the preceding 12 months, a result of the continued escalation of activity the market has witnessed over the past two quarters.

Key Takeaways

  • Auto Insurance Shopping Surge: U.S. consumer auto insurance shopping grew by 31.2% year-over-year in Q3 2024, up considerably from Q2's 16.1% growth.
  • New Policy Volume Growth: New auto policy volumes increased by 25.9% year-over-year, an increase from Q2's 19.5% number.
  • Preferred Segments are More Active: Rate increases drove shopping among the 66+ demographic and preferred and long-tenured customers, which continued the notable shift in traditionally less active segments hitting the market.
  • Direct-to-Consumer Dominance: Direct channel shopping rates jumped 67% and new policies grew 54%, followed by independent agent carriers posting 26% shopping growth.
  • Peak Month for Activity: In August, certain states experienced growth streaks for both shopping and new policy activations. In both categories, Florida (38%), Texas (33%) and Michigan (19%) exhibited increased activity by volume, while Wyoming (80%), Louisiana (54%) and Montana (47%) displayed elevated growth by percentage. New York and California not only ranked in the top five for shopping and new policy growth, they also landed in growth-by- volume and growth-by-percentage categories.

Market Impact of Hurricane Helene
At the end of the third quarter, Hurricane Helene made landfall. Despite the initial halt in shopping Florida (-17%) and Georgia (-16%) experienced, they bounced back more quickly than the Carolinas. North and South Carolina initially saw smaller shopping losses as a result of the storm, but while diminished, the effects continued to linger through the end of the quarter.

Key Observations
"Throughout Q3, the momentum in policy shopping and new policy volumes reached unprecedented levels as U.S. insurers worked to balance profitability with market demands," said Jeff Batiste, senior vice president and general manager, U.S. auto insurance, LexisNexis Risk Solutions. "With strategic reactivation of marketing programs, U.S. insurers enticed motivated consumers, eager to offset the market's rising auto and home policy costs. Resulting record activity levels, coupled with the effects of increased rates, may see the industry officially turning the page on its less profitable chapter and opening its doors for growth."

A Look Ahead
"Looking at trends, typically, soft markets spur aggressive marketing and targeted U.S. rate adjustments to enhance segmentation," said Chris Rice, vice president, strategic business intelligence, LexisNexis Risk Solutions. "Following an especially challenging four years, U.S. insurers must closely monitor industry trends, including stabilizing claim severities, increased frequency of weather-related events, rate adjustments and whether the recent shopping by long-tenured customers has motivated these consumers to entertain future shopping events."

Download the latest U.S. Insurance Demand Meter.

LexisNexis U.S. Insurance Demand Meter
The LexisNexis® U.S. 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 U.S. consumer shopping and switching behavior based on its analysis of billions of consumer shopping transactions since 2009, representing nearly 90% of the universe of U.S. insurance shopping activity.

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.

Media Contacts:
Annalysce Baker
LexisNexis Risk Solutions
Phone: +1 678.436.1579
annalysce.baker@lexisnexisrisk.com

Dean Carney
Brodeur Partners for LexisNexis Risk Solutions
Phone: +1.646.746.5607
Dcarney@brodeur.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/lexisnexis-us-insurance-demand-meter-reaches-nuclear-as-us-consumer-auto-insurance-shopping-new-policy-growth-rates-continue-to-surge-302309345.html

SOURCE LexisNexis Risk Solutions

FAQ

What was the auto insurance shopping growth rate in Q3 2024?

Auto insurance shopping grew by 31.2% year-over-year in Q3 2024, up from 16.1% in Q2.

How did Hurricane Helene impact insurance shopping in affected states?

Hurricane Helene caused temporary shopping declines in Florida (-17%) and Georgia (-16%), though both states recovered quickly, while the Carolinas experienced longer-lasting but smaller impacts.

Which states showed the highest insurance shopping volume increases?

Florida (38%), Texas (33%), and Michigan (19%) showed the highest increases in shopping volume, while Wyoming (80%), Louisiana (54%), and Montana (47%) showed the highest percentage growth.

What percentage of U.S. policies were shopped in the past 12 months?

45% of U.S. policies-in-force were shopped at least once in the preceding 12 months.

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