Quarterly year-over-year shopping growth was 16.1%, up from a 2.9% increase in 2023. At the same time, quarterly year-over-year growth in new insurance policies jumped to 19.5% from 8.7% in the previous quarter.
LexisNexis attributes the surge in shopping and purchasing to higher auto and home insurance rates and increased marketing by insurers.
More than half of people who buy auto insurance own a home or condo, and rising premiums in the home insurance market are encouraging many consumers to buy or switch insurance, the data shows.
Other key findings from the study include:
By the end of the second quarter, the annualized shop rate rose to a record high of 42.3%, driven by four states (Texas, Florida, Georgia, and Arizona) having annualized cumulative shop rates above 50%. As of the end of the quarter, 21% of active auto insurance policies were written in the previous 12 months. Insurers resumed marketing and new business lead purchasing in the second quarter to take advantage of rate-conscious shoppers, including both non-standard and long-term customers. The direct-to-consumer (non-agency-based) distribution channel grew 38%, while the captive agent and independent agent channels grew 2.4% and 8.9%, respectively. New business volume declined slightly from May to June, with shopping growth outpacing new business growth in June for the first time since April 2023.
“Consumers are becoming more price sensitive and are increasingly favoring bundling their personal lines policies, which could create additional profit opportunities for insurers,” said Chris Rice, vice president of strategic business intelligence at LexisNexis Risk Solutions. “Given insurers’ proactive actions around marketing efforts this quarter and the positive consumer response, we believe we will see increased shopping activity continue.”