Consumer Trends and Future Forecasts in Property and Casualty Insurance
In recent evaluations of the Property and Casualty (P/C) insurance sector, Fitch Ratings and Morningstar analysts have delivered key market projections. Complementing these insights, J.D. Power's research offers valuable perspectives on consumer behavior within the industry, providing a comprehensive view of current trends and future forecasts.
Personal Lines: Trends in Consumer Behavior
J.D. Power's Loyalty Indicator & Shopping Trends (LIST) report, developed with TransUnion, sheds light on consumer behavior in the personal lines segment, including auto, home, and renters insurance. The data reveal a slight decline in both shopping and switching activities among insured individuals during the fourth quarter of 2025, with notable variations across different insurance types.
In the auto insurance sector, there was a decrease in both shopping and switching rates, with a fourth-quarter 2025 shopping rate of 13.0%, down from previous quarters and the previous year. Similarly, switching rates fell to 4.1%. Home insurance saw increased shopping activity, reaching 6.8% in the fourth quarter, though switching rates dipped to 2.4%.
Renters insurance displayed a significant decline in switching, with fourth-quarter rates dropping to 3.8%, indicating a sharper decrease compared to other segments. The LIST report highlights consumer profiles, noting that those with lower credit scores were more active in shopping for auto and home insurance. Geographically, the East Coast saw higher engagement in auto insurance shopping, while interest on the West Coast increased towards year-end.
From an insurer’s perspective, Progressive gained the most in auto insurance policy acquisitions, despite significant churn. Meanwhile, State Farm attracted most shoppers in home and renters insurance but faced notable attrition in the renters segment. Allstate experienced the largest number of home insurance defections.
Industry Forecasts: Insights from Accenture
Consulting firm Accenture has provided strategic insights for the insurance market in a recent blog post, highlighting future trends significant to P/C insurers. A key prediction for 2026 is that embedded distribution will emerge as a principal growth driver, allowing insurance to be seamlessly integrated at decision points such as checkouts and renewals. This trend underscores the convenience of obtaining insurance when bundled within consumer workflows.
The forecast suggests insurers poised for rapid advancement in new business acquisition will be those embracing digital partnerships and embedded distribution channels. Insurance growth is anticipated within ecosystems where coverage is part of broader transaction processes, such as purchasing insurance through automobile or smart-home platforms. This approach aligns risk mitigation services alongside coverage.
Success in this domain will likely depend on insurers’ ability to deliver API-driven products and streamlined partner integration processes. This strategy enhances their value propositions beyond traditional distribution models, ultimately aligning with regulatory compliance requirements and evolving consumer expectations in the digital age.