After enduring a long stretch of consecutive rate hikes, loyalty has gone out the window. Insurance customers are eager to save money, even if it means switching insurers. It’s not all bad news though – recent market turbulence has created an exciting opportunity for opportunistic insurance agencies. 

Insurance Shopping Activity Skyrockets

There will always be some policyholders who routinely shop around for a better deal. For many policyholders, though, insurance is often a one-and-done activity. Once consumers secure policies that meet their needs, they’ll likely forget about insurance – unless they have a negative experience or their carrier hikes their premiums.

That’s exactly what’s been happening recently. The number of policyholders with one foot out the door has surged. 

According to J.D. Power, the average cost of auto insurance in the U.S. was up 22.2% year over year at the end of March 2024. As a result, 49% of U.S. auto insurance customers said they were actively shopping for a new policy.

LexisNexis says U.S. insurance shopping has reached “nuclear” levels for three consecutive quarters, citing an 18% increase in the number of consumers shopping for insurance in 2024 compared to 2023. 

It’s not just home and auto insurance, either. Commercial insurance prices have also surged. Since most property and casualty lines have seen significant prices hikes in recent years, this is a widespread trend. 

A Golden Opportunity for Insurance Agencies

Although carriers who are losing policyholders may be worried, the insurance shopping trend creates opportunity for some insurance agencies. 

If you sell home and auto insurance, you’ve likely encountered many people who aren’t interested in your help because they’re satisfied with the coverage they already have. However, satisfaction has dropped. If you can help policyholders lower their costs, many of them will be receptive.

This is a wonderful time to gain new clients and grow your agency – if you can keep up with the demand. One silver lining of the hard market is that consumers have become more reliant on insurance agencies. After seeing insurance rate increases, and in some extreme cases, canceled homeowners insurance policies, consumers appreciate expert assistance. They have questions and are looking for guidance. Many of them will want to speak to someone.

In a previous article, we looked at five ways insurance agencies can prepare for rapid agency growth. Responsive phone service was one of the critical ways agencies can stand out. 

A McKinsey survey found that live phone conversations were among their most-preferred methods of contacting companies for help and support for respondents of all ages, including 18- to 28-year-old Gen Z consumers.

 J.D. Power found that 72% of auto insurance shoppers close the deal with an agent or call center. As purchases become increasingly complex, the likelihood that consumers will want to speak to an agent increases.

Is Your Agency Prepared to Answer the Phone 24/7? 

Imagine you’re an insurance customer who just found out your premiums are doubling. If you can’t afford to pay that much, you begin a frantic search for more affordable coverage. You receive some quotes, but you don’t really understand the coverage differences and you’re unsure how the process of switching works. Since you need expert help, you call an agent. 

The agent doesn’t answer.

You keep calling agents until someone picks up the phone. The agency that answers is the agency that earns your business.

AT&T says most callers will hang up after an average wait time of 1 minute and 30 seconds. If your average wait time is longer than that – and for many insurance companies it is – you have a problem.

Eliminate Wait Times

Liberate’s friendly Voice AI agents eliminate wait times. When you implement our Voice AI technology, a friendly agent who’s ready to help immediately greets insurance shoppers who call your agency. You choose the voice, language, and conversation rules. Plus, you can integrate the Voice AI agent with your existing systems. It’s the cost-effective way to improve customer service and capitalize on the insurance shopping trend. Learn more. 

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