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
Key Takeaways
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U.S. consumer insurance shopping clocked in at 'Nuclear' on the Insurance Demand Meter, as the quarterly year-over-year shopping growth rate grew 16.1% for Q2 2024 (up from last quarter's 2.9% increase). - Quarterly year-over-year growth for new policies is also "Nuclear," with a 19.5% increase for Q2 2024 (up from 8.7% 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 over 50% (
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 channelsgrew 2.4% and 8.9%, 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.
"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
Download the latest Insurance Demand Meter.
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.
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ii What Homeowners Want: Understanding their insurance preferences and behaviors,
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