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LexisNexis® U.S. Insurance Demand Meter Shows Steady Momentum with "Sizzling" U.S. Consumer Auto Shopping and "Hot" New Policy Growth

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LexisNexis Risk Solutions reports strong U.S. auto insurance market activity in Q1 2025, with shopping growth reaching 16% ("Sizzling") and new policy growth at 8.4% ("Hot"). Key findings show 46% of policies were shopped within the past year, with consumers aged 66+ leading shopping activity at 19.7% growth. The direct channel saw a 34% year-over-year increase, outperforming other channels. Policy retention declined to 78%, down from 83% in 2022, with policies churning 30% faster than in 2021. Market activity was driven by tax refund season and potential tariff impacts, with ten states reporting over 20% shopping growth, including Hawaii (59%) and New Jersey (43%).
LexisNexis Risk Solutions riporta una forte attività nel mercato assicurativo auto statunitense nel primo trimestre 2025, con una crescita delle ricerche di polizze del 16% ("Sizzling") e una crescita delle nuove polizze dell'8,4% ("Hot"). I dati chiave mostrano che il 46% delle polizze è stato ricercato nell'ultimo anno, con i consumatori di età superiore ai 66 anni che guidano l'attività di ricerca con una crescita del 19,7%. Il canale diretto ha registrato un aumento del 34% anno su anno, superando gli altri canali. La fidelizzazione delle polizze è diminuita al 78%, rispetto all'83% del 2022, con un ricambio delle polizze del 30% più rapido rispetto al 2021. L'attività di mercato è stata trainata dalla stagione dei rimborsi fiscali e dai potenziali impatti tariffari, con dieci stati che hanno registrato una crescita delle ricerche superiore al 20%, tra cui Hawaii (59%) e New Jersey (43%).
LexisNexis Risk Solutions informa de una fuerte actividad en el mercado de seguros de autos en EE.UU. durante el primer trimestre de 2025, con un crecimiento en la búsqueda de pólizas del 16% ("Sizzling") y un crecimiento en nuevas pólizas del 8,4% ("Hot"). Los datos clave muestran que el 46% de las pólizas fueron buscadas en el último año, con los consumidores mayores de 66 años liderando la actividad de búsqueda con un crecimiento del 19,7%. El canal directo experimentó un aumento interanual del 34%, superando a otros canales. La retención de pólizas disminuyó al 78%, desde el 83% en 2022, con un recambio de pólizas un 30% más rápido que en 2021. La actividad del mercado fue impulsada por la temporada de devoluciones de impuestos y posibles impactos arancelarios, con diez estados reportando un crecimiento en búsquedas superior al 20%, incluyendo Hawái (59%) y Nueva Jersey (43%).
LexisNexis Risk Solutions는 2025년 1분기 미국 자동차 보험 시장에서 강한 활동을 보고했으며, 보험 비교(쇼핑) 증가율이 16%("Sizzling"), 신규 보험 가입 증가율이 8.4%("Hot")를 기록했습니다. 주요 결과에 따르면 지난 1년간 전체 보험의 46%가 비교되었으며, 66세 이상 소비자가 19.7% 증가로 쇼핑 활동을 주도했습니다. 직접 채널은 전년 대비 34% 증가하여 다른 채널을 앞섰습니다. 보험 유지율은 2022년 83%에서 78%로 감소했으며, 보험 전환 속도는 2021년보다 30% 빨라졌습니다. 시장 활동은 세금 환급 시즌과 잠재적 관세 영향에 의해 촉진되었으며, 하와이(59%), 뉴저지(43%)를 포함한 10개 주가 20% 이상의 쇼핑 성장률을 기록했습니다.
LexisNexis Risk Solutions rapporte une forte activité sur le marché de l'assurance auto aux États-Unis au premier trimestre 2025, avec une croissance des recherches de polices atteignant 16% ("Sizzling") et une croissance des nouvelles souscriptions à 8,4% ("Hot"). Les principales conclusions montrent que 46% des polices ont été recherchées au cours de l'année écoulée, les consommateurs âgés de 66 ans et plus menant l'activité avec une croissance de 19,7%. Le canal direct a connu une augmentation de 34% en glissement annuel, surpassant les autres canaux. La rétention des polices a diminué à 78%, contre 83% en 2022, avec un taux de rotation des polices 30% plus rapide qu'en 2021. L'activité du marché a été stimulée par la saison des remboursements d'impôts et les impacts potentiels des tarifs, dix États enregistrant une croissance des recherches supérieure à 20%, notamment Hawaï (59%) et le New Jersey (43%).
LexisNexis Risk Solutions berichtet von einer starken Aktivität auf dem US-Auto-Versicherungsmarkt im ersten Quartal 2025, mit einem Einkaufswachstum von 16% ("Sizzling") und einem Neupolicenwachstum von 8,4% ("Hot"). Wichtige Erkenntnisse zeigen, dass 46% der Policen im vergangenen Jahr verglichen wurden, wobei Verbraucher ab 66 Jahren mit einem Wachstum von 19,7% die Einkaufsaktivitäten anführen. Der Direktkanal verzeichnete einen 34%igen Anstieg im Jahresvergleich und übertraf damit andere Kanäle. Die Policenbindung sank auf 78%, von 83% im Jahr 2022, wobei Policen 30% schneller wechselten als 2021. Die Marktdynamik wurde durch die Steuererstattungszeit und mögliche Zollauswirkungen angetrieben, wobei zehn Bundesstaaten ein Einkaufswachstum von über 20% meldeten, darunter Hawaii (59%) und New Jersey (43%).
Positive
  • Strong auto insurance shopping growth of 16% YoY in Q1 2025
  • Robust new policy growth of 8.4%
  • Direct distribution channel showed significant growth of 34% YoY
  • Ten states reported shopping growth of 20% or more, with Hawaii leading at 59%
  • Non-standard market segment experienced 30% growth
Negative
  • Policy retention dropped to 78% from 83% in early 2022
  • Policies are churning 30% faster compared to three years ago
  • Six million more policies switching hands annually compared to 2021
  • Higher claims frequency in new policies likely to increase loss and expense ratios
  • Declining retention rates may strain carriers' business models

Insights

LexisNexis reports strong Q1 2025 insurance metrics with 16% shopping growth and 8.4% new policy growth, indicating solid RELX data business performance.

The latest LexisNexis Risk Solutions report reveals continued robust momentum in the U.S. auto insurance market, albeit slightly cooling from Q4 2024's "Nuclear" activity to now "Sizzling" levels. With 16% year-over-year shopping growth and 8.4% new policy growth, these metrics represent significant activity levels that translate to heightened data transaction volumes for RELX's insurance data business.

The report highlights several critical market trends with substantial revenue implications for LexisNexis. First, the 46% of policies being shopped within the past 12 months indicates an extraordinary level of consumer activity generating data queries. Second, direct channel distribution saw a 34% year-over-year increase, significantly outpacing agent channels, which suggests accelerating digital transformation in insurance distribution—a positive development for LexisNexis's digital solutions.

Perhaps most notable from a business perspective is the surprising shift in demographic behavior, with consumers aged 66 and older showing 19.7% shopping growth—traditionally a stable segment now becoming more active. This expanding market creates additional data service opportunities across new segments. The decreasing retention rates (down to 78% from 83% in early 2022) mean policies are churning nearly 30% faster than three years ago, with approximately six million more policies switching hands annually compared to 2021.

For RELX investors, these trends indicate healthy underlying transaction volumes and data service demand for LexisNexis Risk Solutions, with multiple growth vectors across customer segments, distribution channels, and geographic markets. The non-standard market's 30% growth and ten states reporting shopping increases of 20% or more (with Hawaii at an impressive 59%) further demonstrates the breadth of market opportunity that LexisNexis is capitalizing on through its insurance data services.

ATLANTA, May 20, 2025 /PRNewswire/ -- After a three-quarter streak of "Nuclear" activity, U.S. consumer auto insurance shopping remained elevated in the first quarter of 2025, according to the latest LexisNexis® Risk Solutions U.S. Insurance Demand Meter. U.S. auto policy shopping growth reached "Sizzling" at 16%, and new policy growth came in "Hot" at 8.4%. Both readings represent a slight cooling from Q4 2024.

Key Takeaways

  • Shoppers Stay Active: As of March 31, 2025, 46% of policies-in-force were shopped at least once in the past 12 months.
  • Shopping and New Policy Growth Remain Elevated: Auto insurance shopping grew 16% year-over-year in Q1 2025, while new policy growth reached 8.4%.
  • Tax Season and Tariff Concerns Drive Behavior: Consumer activity was fueled by tax refund-driven shopping and new vehicle purchases, potentially ahead of anticipated tariff impacts.
  • Older Consumers Lead the Charge: Policyholders aged 66 and older were the most active demographic, with year-over-year shopping growth of 19.7%.

Key Observations
"Macro forces like tax refund season and tariff concerns are helping shape consumers' auto insurance shopping behavior in meaningful ways," said Jeff Batiste, senior vice president and general manager, U.S. auto and home insurance, LexisNexis Risk Solutions. "We also are seeing traditionally stable, high-value customer segments become more active in the market. That underscores a potential need for insurers to re-evaluate how they engage and retain policyholders who may have previously been considered low churn risks."

First Quarter Trends Influenced by Direct Channel and Tax Season
Shoppers using the direct channel helped drive first-quarter growth across all age groups, with direct distribution outpacing both independent and exclusive agent channels with a 34% year-over-year increase. Meanwhile, the non-standard market segment saw 30% growth, attributed in part by an influx of uninsured shoppers entering the market with tax refunds in hand.

While tax season spurred activity, February's shorter calendar tempered overall momentum. Compared to the Leap Year advantage in Q1 2024, 2025 featured one fewer business day, trimming shopping activity. Still, many regions saw elevated shopping growth, with 10 states reporting increases of 20% or more, including Hawaii (59%), New Jersey (43%), Washington (33%) and Massachusetts (31%).

New Policy Growth Gets a Boost from Refunds and Pre-Tariff Vehicle Sales
New policy growth remained solid, supported by March's momentum. LexisNexis Risk Solutions internal analysis points to a combination of tax refund season and increased vehicle sales as drivers of this trend, as consumers looked to get ahead of potential cost impacts from impending tariffs. Notably, states such as Nevada (39%), New Jersey (31%) and New York (30%) reported new policy growth of 20% or higher.

Loyalty Slips as Market Dynamics Shift
As economic pressures and more aggressive marketing strategies converge, auto policy retention continues to decline. Average policy retention dropped to 78% by the end of Q1, down from 83% in early 2022. Today, policies are churning nearly 30% faster than just three years ago, with roughly six million more policies switching hands annually compared to 2021.

Perhaps more surprising, historically loyal segments, such as policyholders aged 66 and older and those with 10 and more years of tenure, are now contributing significantly to the uptick in shopping and switching behavior. This shift underscores the potential need for insurers to double down on proactive retention strategies.

Older Consumers Top the Charts in Shopping Activity
Older adults, particularly those 66 and older, became the most active shoppers this quarter, growing nearly 20% year-over-year. Meanwhile, the 26-35 age group saw the lowest growth at just over 13%. Rate sensitivity among older consumers on fixed incomes likely played a key role in older shoppers' increased activity, a noteworthy reversal for what has traditionally been a stable segment.

Looking Ahead
LexisNexis Risk Solutions notes that while the full impact of proposed tariffs may not be felt until later in 2025, those currently in effect are already shaping the market. Consumers may fast-track purchases of vehicles and home goods before prices climb and, as a result, insurers could see a ripple effect across both auto and home policy activity. As these lines of business increasingly influence one another, insurance carriers will need to closely monitor shopping trends and refine their acquisition and retention strategies accordingly.

"Carriers are achieving notable underwriting results but continue to face significant retention challenges. Declining retention rates may force carriers to replace lost policies to sustain growth, which could strain their current business models," added Batiste. "Acquiring new business is costly, and these policies often have higher claims frequency than long-standing ones, likely increasing both loss and expense ratios. To help maintain positive underwriting results, carriers should remain disciplined in their underwriting approach."

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 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 

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SOURCE LexisNexis Risk Solutions

FAQ

What was RELX's auto insurance shopping growth rate in Q1 2025?

LexisNexis reported a 16% year-over-year growth in auto insurance shopping for Q1 2025, classified as 'Sizzling' activity.

How has RELX's auto insurance policy retention changed since 2022?

Policy retention has declined from 83% in early 2022 to 78% by the end of Q1 2025, with policies churning nearly 30% faster than three years ago.

Which age group showed the highest auto insurance shopping activity in Q1 2025?

Consumers aged 66 and older were the most active shoppers with 19.7% year-over-year growth in Q1 2025.

What percentage of RELX's policies were shopped in the past 12 months?

As of March 31, 2025, 46% of policies-in-force were shopped at least once in the past 12 months.

Which states showed the highest auto insurance shopping growth in Q1 2025?

Hawaii led with 59% growth, followed by New Jersey (43%), Washington (33%), and Massachusetts (31%).
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