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
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SOURCE LexisNexis Risk Solutions
