Quarterly Insurance Signals Intelligence Report - Q2 2026 Insights
The latest Quarterly Insurance Signals Intelligence Report, a collaboration between J.D. Power and TransUnion, reveals a decline in auto insurance shopping activity, though policy switching is on the rise. The data shows an overall shopping rate of 12.6%, marking a 1-point decline from the previous quarter and a 0.4-point drop from the previous year. Conversely, the switching rate increased to 4.5%, growing by 0.3 points both quarter-over-quarter and year-over-year.
The report highlights a notable fluctuation in shopping activity throughout the second quarter, with a reduction in April, a peak in May, followed by another decline in June. Despite this cooling trend in shopping, policy switching climbed, reaching a high in May before decreasing in June. For those changing insurance providers, the median premium value for new policies exceeded $3,200.
Indications suggest that the auto and property insurance markets might be shifting from a period of intense activity. "While insurance shopping remains elevated across auto and property, growth has begun to level off," the report states. Data points to consumer behavior aligning across credit tiers, implying potential stabilization in market dynamics.
State Farm's Market Leadership
State Farm emerged as a leader in attracting auto and home insurance customers this quarter. On the loyalty front, some carriers saw higher customer retention, while others faced challenges, according to J.D. Power's "Loyalty Tracker," which evaluates insurers with over 200 quarterly responses.
In a related development, S&P Global Market revealed a significant change in the auto insurance landscape with Progressive overtaking State Farm in private direct premiums written over a 12-month period ending on March 31.
AI and Consumer Engagement
J.D. Power's AI Insurance Experience Study, set to release in August, explores consumer engagement with artificial intelligence during insurance inquiries. The study notes that a substantial portion of consumers engaged with AI tools like ChatGPT and Copilot during their research.
Additionally, the 2026 Auto Insurance Trends Report by LexisNexis Risk Solutions finds U.S. traffic violations have surged back to pre-pandemic levels, with a rise in distracted driving incidents, especially among older drivers. This report also cites a dramatic increase in vehicle ownership costs due to rising loan amounts and fuel prices, aligning with a sustained period of auto insurance rate hikes since 2021. By Q4 2025, there was a minor decline in average premium rates at renewal, though consumer price sensitivity remains high.
Finally, the U.S. Insurance Demand Meter for Q1 2026 from LexisNexis indicates auto insurance shopping and new business growth have moderated, with year-over-year growth slowing to 3.2% and new policy growth at 3.6%. These numbers point to a cooling phase following the heightened activity in 2025.