Texas Market Update

Good afternoon.

Please find a summary post summer for auto insurance sales in Texas. Also below are the latest estimated rate changes from filings and comparative raters over the last 60 days

• Allstate County Mutual – down 2%

• American Access – down 1.5%

• Infinity – up 1.7%

• Geico – up 3.7%

• Texas Ranger – up 4.6%

• GoAuto – up 1.9%

• American Family Connect – up 6.2%

• Gainsco - Down 3%

• Commonwealth - down (NA)

• Horace Mann – up 11%

• Venture General – up 10% on full covg; up 5% on liab only

• United – up 7%

National & Texas Overview (Summer 2025)

LexisNexis U.S. Insurance Demand Meter – Q2 2025 (April–June)

• Shopping activity rose 9.4% year-over-year nationally.

• New policy growth increased by 3.6% YoY. LexisNexis Risk SolutionsInsurance Business America

• Direct channel growth surged 22.8% YoY, leading growth across all distribution methods.LexisNexis Risk Solutions

• In Texas specifically, shopping volume grew by 17%, ranking among the top four states.LexisNexis Risk Solutions

Takeaway: Electronics and online platforms (i.e., direct channels) are driving new policy acquisitions, and Texas consumer activity mirrors this broader trend.

J.D. Power – 2025 U.S. Insurance Digital Experience Study (Data through Jan 2025)

• 47% of vehicle insurance purchases now occur via digital channels (websites/apps).

• 35% of buyers still go through insurance agents, while 17% use call centers. Carrier Management

Takeaway: Almost half of all auto policies are now sold digitally—even before summer 2025—underscoring the continued shift away from traditional agent-based sales.

Texas-Specific Figures & Context

While granular Texas-only breakdowns by distribution channel (agents vs direct) for summer 2025 aren’t publicly available in the sources, we do have important statewide context:

• In 2024, independent agents—which includes those selling auto insurance—held 64.9% of Texas’s total P&C premium volume, outpacing the national average of 61.5%.IIAT

• Meanwhile, direct premiums earned in Texas for P&C lines reached $59 billion in 2024. California led with $94B, followed by Florida, then Texas.Insurance Business America

Takeaway: In Texas, independent agents remain a dominant force in P&C distribution, but direct channels are closing in, consistent with national shifts.

Summary Table

Channel	National Trend (Summer 2025)	Texas-Specific Insight
Direct (digital)	+22.8% YoY growth in Q2, 47% of purchases through digital interfaces	Increasing, but overall share not fully quantified
Agent-based (independent)	Slower growth compared to direct channel	Still holds strong: ~64.9% of P&C premiums in 2024
Total auto shopping behavior	9.4% increase YoY; new policies +3.6%	Texas shows high engagement: 17% rise in shopping

Final Thoughts

• The summer of 2025 sees direct channels surging—consumers increasingly prefer digital platforms when shopping for auto insurance.

• Agents, especially independent agents in Texas, remain highly relevant but face growing competition from direct platforms.

• For Texas, while agent-based channels commanded a large share in 2024, the 17% increase in shopping activity signals shifting dynamics heading into the remainder of 2025.

Let me know if you’d like to explore longitudinal trends (e.g., over the past several years) or breakdowns by captive vs independent agents, or how these shifts could affect carrier strategies in Texas.