According to the LexisNexis Insurance Demand Meter, a "Sizzling" Q1 2024 for new policies showed consumers are still not resigned to higher rates as insurers continue to adjust strategies to retain customers for long-term growth

ATLANTA, May 16, 2024 /PRNewswire/ -- 

Key takeaways

U.S. consumer auto insurance shopping activity registered as "Hot" on the LexisNexis® Insurance Demand Meter, as quarterly year-over-year shopping grew 2.9% for Q1 2024 (slowing slightly from last quarter's 4.7% increase year-over-year).The quarterly year-over-year growth for new policies was "Sizzling," up 8.7% for Q1 2024 (and up again from +7.0% last quarter).Quarterly year-over-year new policy growth increased, trending up for the seventh consecutive quarter and 20th straight month, meaning consumers continue to switch carriers at an increasing rate when they shop.Even as March saw a slightly lower shopping growth rate from the previous year – which may be attributable to fewer workdays and more weekends than in 2023 – 42% of insured households shopped in the last 12 months.When comparing all years back to 2021, the consumers most likely to be retained by their existing insurance company – or those who have been loyal for 10+ consecutive years – comprised less than 20% of the shopper pool. Through Q1 2024, this cohort has grown to 24% of total shoppers.More drivers entering the market: In Q1 2024, the growth in new drivers largely offset the number of leavers. This bucks the trends observed in 2022 and 2023 where a record number of consumers left the market in response to higher premiums.