Texas Independent Agents reported extreme growth in new business this January with consumers shopping for savings as auto insurance rates have risen over 40% in Texas over the past two years. ITC quotes were up 50% in January 2023 over January 2022.
Insurance Business wrote,
"A report by JD Powers and Trans Union suggested that consumers have taken note of the historic rate increases their insurers have been making, forcing their hands to shop for better deals. For Q4 2022, the shopping rate was observed to be at 12.1%, characterized by a busy shopping month in November, which eventually cooled down by December. According to J.D. Power, US auto insurance shopping activity during Q4 2022 was so high, that the numbers are some of the highest it has seen in the 2+ years it has been doing these reports." (Insurance Business, Lyle Adriano Jan 25, 2023)
Not only are rates providing an opportunity for agents, but more consumers are arriving in Texas daily.
Domestic migration made for nearly a 2% growth in Texas from 2021 to 2022 with over 230,000 people coming to The Lone Star State. Florida had the most new additions at 313,000.
State's losing population include California, New York and Illinois.
Opportunities abound for independent agents.
Rates continue to move upward as carriers continue to respond to inflation and growing impact from bodily injury litigation. Here are the latest estimates of market changes from filings and ITC:
American Access +9%
Liberty Mutual +12%
American Family Connect +12.3%
Lonestar Maverick +10%
First Acceptance +17.4%
Farm Bureau +5%
Unknown amounts from several county mutuals MGAs, including Gateway Fenix, AuotMGA, AmWins
I remain available for any questions or feedback,