U.S. Auto Insurance Shopping Hits Near-Record Highs as Affordability Pressures Mount

U.S. auto insurance shopping remained in "Warm" territory in Q3 2026, despite a slight deceleration in growth. For carriers and brokers, the data highlights a persistent shift toward active policy evaluation, with nearly half of all policies shopped annually. This sustained volatility places renewed pressure on retention strategies, particularly for first-year policyholders who are most likely to switch.

What was announced

LexisNexis Risk Solutions released its Q3 2026 U.S. Insurance Demand Meter, showing a 0.7% year-over-year shopping growth rate. While this is a dip from the 1.4% recorded in Q2, the market remains active. New business growth reached 3.2%, slightly down from 3.3% in the previous quarter. A significant 47.2% of policies-in-force were shopped at least once over the past year, hovering near the record high of 47.3% set in Q1.

The report identified a surge in non-standard shopping, which grew by 5.4%—its first positive growth in 2026—compared to a 9% decline in Q2. Standard shopping growth slowed to 1.3%. Geographically, 28 states saw positive growth, led by Michigan (7%) and New Jersey (6.8%), followed by Connecticut, Georgia, and Nevada, which rounded out the top five with 6.2% growth. The exclusive agent distribution channel outpaced both direct and independent agent channels for the second consecutive quarter, posting 4.5% growth.

Analysis of policy churn revealed that policies lost over a 60-day period account for 18% of active policies annually. Of these, 70% remain active by switching carriers or returning to an original provider. Crucially, first-year policyholders account for 40% of all lost policies and more than half of total market exits, signaling a major vulnerability in early-stage retention for insurers.

The companies involved

LexisNexis Risk Solutions is a major provider of data, analytics, and technology for the insurance industry, focusing on underwriting, claims, and risk management. The company is a subsidiary of RELX, a global provider of information-based analytics and decision tools for professional and business customers. LexisNexis has established a dominant position in the U.S. insurance market by leveraging vast datasets to provide insights into consumer behavior and risk profiles.

The firm’s parent company, RELX, operates across four main segments: Risk, Scientific, Technical & Medical, Legal, and Exhibitions. LexisNexis Risk Solutions specifically serves a wide range of sectors beyond insurance, including financial services, healthcare, and government. In the insurance space, its tools are used by carriers to refine pricing models and improve the accuracy of risk assessment. The company has expanded its capabilities through strategic acquisitions and partnerships, reinforcing its role as a critical infrastructure provider for modern insurtech and legacy carriers alike.

What FF News has reported before

FF News has tracked the growth and strategic moves of LexisNexis Risk Solutions over several years. In 2021, the publication reported on the company's expansion into the financial crime and compliance space with the news that LexisNexis Risk Solutions Acquires TruNarrative. This move highlighted the firm's commitment to integrating advanced orchestration platforms into its risk management suite. Additionally, the publication covered the company's collaborative efforts in the legal tech sector, noting how AffiniPay and LexisNexis Announce LawPay for Juris to Serve Tech-Forward Law Firms. These reports underscore the company's broader strategy of embedding its data solutions across diverse professional service verticals to enhance decision-making and operational efficiency.

What this means from an insurtech perspective

This data signals a "new normal" of high-velocity churn that challenges traditional underwriting and pricing models. The fact that 40% of lost policies are in their first year suggests that the "honeymoon period" for new customers has vanished; carriers are failing to demonstrate value beyond the initial quote. This puts immense pressure on incumbent vendors and MGAs to move beyond static pricing toward real-time, behavioral engagement. For the insurtech sector, the rise of "agentic shopping" and AI-driven comparison tools means carriers must optimize their distribution channels—particularly exclusive agents, who are currently outperforming direct channels—or risk being commoditized in a market where half the customer base is perpetually looking for the exit.