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Rate Pressure, Customer Retention and Digital Engagement Top Insurance Industry Challenges for 2026

Key Insights

• Effects of rate increases hit critical mass: The percentage of customers who shopped for auto insurance hit record-high levels at 57% in 2025, up from 49% in 2024. However, unlike past years – when switching lagged shopping – customers are finding better prices in the market, which will put further pressure on insurers in 2026.
• High-value customer retention a top priority: Driven by premium hikes, insurers are starting to finally see customer attrition among their most valuable customers – those who are more likely to bundle products and have high rates of loyalty. With price volatility likely to remain a factor in 2026, insurers must find ways to focus their efforts on retaining these customers.
• Digital channels and technology offer key insights: Use of digital channels and technology are vital to customer satisfaction. Overall, 47% of all insurance policy buyers now purchase through digital channels, and customers are forming new habits and opinions in their use of tech, which provides an opportunity for insurers to tailor their offerings.

 

Executive Summary

Sky-high policy rates have finally changed the game. After five years of unprecedented volatility, insurers are beginning to see the consequences of gradual, but consistent premium hikes. Faced with bigger bills, customers have come to expect more from their insurers. Now more than ever, insurers that fail to provide compelling offers to customers will send them rushing into the waiting arms of a company that will. 

This Insurance Intelligence Report dives into key data points gathered from JD Power Insurance Intelligence studies and proprietary market data to offer a data-driven perspective on the biggest issues confronting insurers as we head into 2026.

 

Premiums Drive Satisfaction, Even Among High-Value Customers

Insurers likely knew that rate hikes were building toward a tipping point. For years, the number of customers who were shopping for new policies continued to climb, but those who were actually willing to make the switch lagged. The reasons for this varied. All insurers were raising rates, so customers couldn’t find a lower premium when they were shopping. In fact, some insurers were not actively seeking new customers. But now that insurers are getting more aggressive, customers are on the move.

Even as customer satisfaction has held steady, 29% of insurance customers switched their insurer in 2025. Of particular note, customers who had high rates of loyalty in the past – those who insurers deem “high-value” customers due to their loyalty and willingness to bundle multiple products –now say they are the least likely to renew with their insurer. In fact, just 51% of high-value customers say they will definitely renew with their insurer. Lack of understanding in pricing is key to this change in behavior. In fact, when customers understand why the price of their premiums is increasing, they are typically far more satisfied with their premium. 

It’s important that insurers fill this information vacuum. In the absence of insurers explaining hikes, some customers are turning to artificial intelligence. In fact, AI is playing a heavy role in the shopping process by helping customers understand the nuances of the industry, learn the insurance lexicon and even shop quotes. This could spark the evolution of new customer habits and drive a wedge between customers and insurers. In 2026, companies need to find the best way to proactively deliver personalized customer information about their premiums.

 

Digital Channels Take Center Stage

One way to achieve this level of personalized communication is through digital channels. Customers want a comprehensive digital experience. According to the JD Power 2025 U.S. Auto Insurance Study,^SM the KPI that most drives overall customer satisfaction is providing a seamless cross-channel experience.). In fact, among customers who start their interaction through an insurer’s app, 46% are more likely to say they had a seamless cross-channel experience than those who inquire via phone or through an agent.

What’s more, 47% of all insurance policy buyers now purchase through digital channels, significantly more than through agents (35%) and more than double that of call centers (17%). The better digital experience customers have with their insurer, the more likely they are to keep using digital channels. When customers have an excellent digital experience (overall satisfaction score of 801 or higher on a 1,000-point scale), 92% say they definitely will use digital channels in the future. When customers have a poor digital experience (overall satisfaction score of 500 or less), only 40% say they are likely to use digital channels in the future.

With more customers willing to not just start a claim or speak with an agent, but also purchase policies through an app, it will be vital for insurers to create a cohesive experience between their digital channels and the rest of their business in 2026.  

 

The Evolution of UBI

Usage Based Insurance (UBI), which uses telematics software to monitor an insured customers driving style and assign rates based on safety and mileage metrics, is increasingly important to shoppers, and insurers are responding in kind. This past year, 17% of insurers offered UBI programs to shoppers, up from 15% in 2024, but still down from 22% in 2023. 

While the trend toward UBI appears to be heating up again, the drop-off from two years ago reflects challenges insurers are still dealing with as they try to get the UBI formula right. Using a mobile app to collect driving info is the most common form of data collection in UBI programs, but it also correlates with the lowest levels of customer satisfaction among those who use these apps. Insurance app (628) trails vehicle system or an onboard computer (703), a device installed in the customer’s vehicle (656), or self-reported data (640).

UBI is often used to entice customers to save money on their premiums, and with so many customers shopping their policies, this is an easy way to offer a reduced price. But customers will only find this attractive if they trust the data that is collected. Done properly, insurers can use UBI to bring down premiums, attract and retain clientele and build loyalty in the process.

 

Controlling the Controllables 

To a degree, pricing will always create some level of attrition. But in times like these, insurers need to find ways to insulate themselves from the ebbs and flows of premium changes. To do that, companies will need to offer more personalized interactions across all channels of their customer-facing business. 

With so many customers up for grabs, particularly those high-value customers who are more likely to bundle products and are almost impossible to recapture, it will be the insurers that can unlock the most streamlined interactions and proactively communicate that will succeed in 2026.

 

Find out More

This Insurance Intelligence Report is based on data and insights gathered across all JD Power Insurance Intelligence studies conducted during 2025. It was authored by Craig Martin, executive director; Stephen Crewdson, managing director; and Tony Soloman, director, insurance intelligence at JD Power.

Please contact us at the numbers below to connect with the team or to learn more about the underlying research.

 

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected] 

Joe LaMuraglia, JD Power; East Coast; 714-621-6224; [email protected] 

The Seven Year Itch

The battleground between dealership service departments and aftermarket facilities for vehicle servicing is well worn. The JD Power 2013 Canadian Customer Commitment Index Study^SM research has shown that dealership service departments serve as a secondary sales de.partment. Learn when to forgo the increased service revenue of older vehicles.

Improvements in Data Networks Lessen Network Quality’s Impact on the Canadian Wireless Customer Experience

Data networks have become less of a differentiating driver in the customer experience as data problems become less prevalent. Find out more about how carriers will need to focus on improving other factors of the customer experience such as customer service, purchase process, cost of service, offerings and promotions, and account management to stand out against the competition.

Financial Health of U.S. Consumers Drops to a 12-Month Low

The stubbornly high cost of consumer goods continues to be a drain on consumers in the United States. The number of consumers in the U.S. classified as financially unhealthy^[1] has climbed to its highest level in 12 months, as measured by JD Power.

As their struggles continue, consumers are prioritizing their payments and coming up with strategies for what bills would go to the back of the line should that become a necessity. While consumers plan for the worst, there are provider programs and banking tools that may be able to help, but a knowledge gap exists, particularly among those that stand to benefit from assistance the most. 

 

Financial Health Shows Strain

Financial health has been on a steady decline since October. In January, the proportion of consumers who are financially vulnerable rose to 46%. That increase brings the total share of financially unhealthy consumers, defined as vulnerable, overextended or stressed, to 72%: its highest mark in 12 months. Holiday spending may have had an impact, and if so, we would expect to see a correction within the next month.

 

The persistently high price of consumer goods has become an accepted reality. Overall, 68% of consumers say the price of goods is increasing faster than their income in January, largely in line with the rate of the past six months. This could be an indication that prices have had a snowball effect, and consumers are finally reaching a tipping point. Vulnerable (74%) and stressed (79%) consumers have notably higher levels of concern regarding inflation. 

 

When Hardship Hits

With financial health slipping, some consumers are making difficult choices on what bills need to be paid in a timely manner. More than half (56%) say that if they could not pay their bills on time, they would skip or delay entertainment subscriptions or other memberships. That includes 62% of healthy consumers and 61% of those over the age of 40. Interestingly, 29% say that they would skip their internet or mobile phone bill, followed by a credit card payment (28%). 

 

In the event of financial hardship, consumers have options to contact their provider for a grace period, payment assistance or inclusion in a hardship program. But according to JD Power data, there is a gap in provider-contact knowledge. While 73% of consumers say they know how to contact their internet or mobile phone provider, just 42% say they know how to do the same for a personal or student loan provider. What’s more, knowledge on how to contact these providers is notably higher among healthy consumers and those over the age of 40 – the populations that are less likely to need help.

 

 

Can Banks Help Stave off Hardship

While consumers are certainly planning for a worst-case scenario, they should be working just as hard on a path forward. The price of goods doesn’t seem to be declining anytime soon, and many consumers could have to come up with strategies to stay afloat. 

One way banks may consider intervening is a huge engagement push around digital tools. More than one-third (37%) of consumers say they are willing to use digital banking tools, such as budgeting and spend management tool, more, including 61% of overextended consumers and 54% of consumers under the age of 40.  If banks can find a way to expand the reach of these tools, it could mitigate some of the financial risk exposure that consumers face. 

 

Find out More

This Banking and Payments Intelligence Report is based on responses from 4,000 consumers nationwide and was fielded in January 2026. It was authored by Jennifer White, senior director of banking and payments intelligence at JD Power. Please contact us at the numbers below to connect with Ms. White or to learn more about the underlying research.

 

Media Contacts
 

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Joe LaMuraglia, J.D. Power; East Coast; 714-621-6224; [email protected]

 

[1] JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage. Consumers are placed on a continuum from healthy to vulnerable.

FinTech Brands Continue to Attract and Convert New Banking and Investment Accounts

• Chime sees highest new customer acquisition for checking accounts and conversion rates for checking and savings accounts
• Fidelity leads on new investment account openings, SoFi leads on investment account conversion rate
• Bank of America and Chase capture highest percentage of mass affluent and affluent banking customers

 

The “soft switching” phenomenon, whereby banking and investment services customers are opening secondary accounts and quietly making them their primary relationships, continues for a second consecutive quarter in the JD Power Financial Services Churn Data and Analytics report.

The report, which tracks customer attrition among the nation’s leading financial services providers, finds that FinTech brands, such as Chime and SoFi have become the biggest beneficiaries of this trend, attracting and converting new account openings faster than more established financial services brands. The trend is particularly noteworthy in the mass market banking segment, while traditional brands continue to lead on new account openings in the mass affluent and affluent banking segments[1].

 

Chime Leads on New Bank Account Openings and Conversions

Just under half of new checking (49%) and savings (46%) account openings in the fourth quarter of 2025 were for secondary accounts, opened by customers who already have an existing banking relationship, while 26% of checking and 18% of savings account openings were replacement accounts. Brand new banking relationships among customers who did not previously have a banking or checking account represented 25% of all checking and 36% of all savings account openings. This pattern of secondary account opening, which is consistent with Q3 2025, suggests that more banking customers are expanding and diversifying away from their primary deposit relationships.

 

Chime claimed the largest share of new checking account openings in Q4 with 12.8%. It was followed by Chase (8.4%) and Wells Fargo (7.1%). Among new savings account openings, Chase saw the largest overall market share at 9%. It was followed by Chime (8.4%) and Bank of America (6.3%).

One area where Chime has continued to show strength for a second consecutive quarter is its conversion rate—the percentage of time the checking account was opened with the bank after customers evaluated other brands. Overall, Chime has the highest conversion rate for customers who considered opening checking (78%) and savings accounts (85%). For both checking and savings accounts, Chime consistently outperformed both FinTechs and more established brands on new account conversion.
 

 

Bank of America and Chase Win More Affluent Banking Customers

When it comes to targeting higher income, and higher net worth, customers, the Big Four national banks are outperforming FinTech brands. Among checking account openings, Chime led on customer acquisition in the mass market segment, claiming 11.5% of new customers, while Chase led in the mass-affluent segment, with 10.9% of new customers, and Bank of America led in the affluent segment, with 14.1% of new customers in Q4. A similar trend played out in savings accounts, where Chime led mass market customer acquisition with 11.5% market share, and Chase led in both the mass affluent (9.7%) and affluent (11.5%) segments. 

 

 

Investment Account Openings, SoFi Converts More Customers

In the investment account category, Fidelity claimed the largest share of new account openings in Q4 with 16.8%. It was followed by Charles Schwab (9.1%) and Robinhood (8%). When it came to new account conversions, however, FinTech brand SoFi claimed the lead, capturing 83.1% of accounts that were opened after other brands were evaluated. SoFi was followed by Fidelity (80.2%) and Acorns (78.2%)

 

When segmenting customer acquisition by total investible assets, Fidelity maintained the top position among mass market (16.3%), mass affluent (17.7%) and affluent (16.4%) customers. It is followed by Robinhood (10.5%) in the mass market segment and Charles Schwab in the mass affluent (10.8%) and affluent (13.1%) segments.

 

 

A Mature Market Ripe for Disruption

The findings in this report are noteworthy because they spotlight a critical transition point in the decision-making process of financial services customers as they evaluate a steadily growing list of brands and options for how to manage their money. We are clearly seeing a trend toward more consumer interest and experimentation with relatively new FinTech brands, particularly in the mass market segment. The fact that many of these brands are succeeding at converting customers suggests that effective digital engagement will play a major role in the future development of the financial services industry. Incumbent brands need to monitor this trend closely and make sure they are continuing to connect with the right customers at the right time with the right approach.

 

Find out More

This Financial Services Intelligence Report is based on 263,151 responses collected as part of the JD Power Financial Services Churn Data and Analytics report between October and December 2025. It was authored by Jennifer White, senior director, financial services intelligence at JD Power. Please contact us at the numbers below to connect with the team or to learn more about the underlying research.

 

Media Contacts
 

Brian Jaklitsch; East Coast; 631-584-2200; [email protected]

Joe LaMuraglia, JD Power; East Coast; 714-621-6224; [email protected]
 

[1] JD Power defines wealth categories for banking as Mass Market (income <$150,000 and investable assets <$100,000); Mass Affluent (income of $150,000+ and investable assets <$250,000 or income <$150,000 and investable assets of $150,000+); and Affluent (income of $150,000+ and investable assets of $250,000+). Wealth categories for investment accounts are defined as Mass Market (<$250,000 in household investments); Mass Affluent ($250-<$1milion in household investments); and Affluent ($1 million+ in household investments).

 

Financial Services Churn Data and Analytics Report Q4 2025

The following is based on data gathered through the JD Power Churn Data and Analytics 2025 fourth-quarter report. Review insights on this quarter’s results in the latest industry briefing: FinTech Brands Continue to Attract and Convert New Banking and Investment Accounts

 

Checking Savings

Who is Acquiring the Most New Accounts?

Chime captures the highest share of checking account openings and is most effective at turning considerations into new accounts. This mirrors results from Q3 2025.
 

 

Do Those Open Rates Hold True by Affluency? 

Chime maintains its leadership among the Mass Market, but Bank of America and Chase capture the highest percentage of new accounts among the Affluent and Mass Affluent.

 

SAVINGS ACCOUNT

Who is Acquiring the Most New Accounts? 

Chase outpaces Chime in new savings account openings, but Chime converts the most considerations into new accounts.

 

Do Those Open Rates Hold True by Affluency? 

Chime leads in savings account openings within the Mass Market, but Chase, Bank of America, Wells Fargo, and Capital One win the most Mass Affluent and Affluent new savings accounts.

 

INVESTMENT ACCOUNT

Who is Acquiring the Most New Accounts? 

Chime captures the highest share of checking account openings and is most effective at turning considerations into new accounts. This mirrors results from Q3 2025.

.

 

Do Those Open Rates Hold True by Affluency?

Chime leads in savings account openings within the Mass Market, but Chase, Bank of America, Wells Fargo, and Capital One win the most Mass Affluent and Affluent new savings accounts.

 

 

About JD Power Churn Data Analytics

JD Power U.S. Financial Services Churn Data & Analytics is a syndicated benchmarking study profiling the actions and experiences of customers opening new financial products/accounts in the U.S. The study includes the following consumer account types: checking, credit card, savings/money market, individual investment, HELOC/HELoan, personal loan, auto loan, and retirement. The key metrics in this study track the opening and closing (“churn”) of customer financial accounts among institutions. 

Contact our team to get the full results. 

Make sure you are on the list to get the latest report as soon as it is published. 

A marketer’s guide to leveraging regional customer satisfaction insights to strengthen trust, loyalty, and brand differentiation.

Banking Customer Insights driven by JD Power Research

In today’s crowded financial services landscape, customer experience has become one of the most powerful—and credible—marketing differentiators. With more than half of retail banking customers open to switching banks within the next year, marketers face a clear mandate: earn trust, prove performance, and communicate value in ways that resonate locally and emotionally.

For CMOs and agencies serving retail banks, this environment elevates the importance of unbiased, third‑party customer insights. Data‑driven performance signals not only inform smarter marketing strategies—they also provide the proof points that build confidence, credibility, and brand preference.

Unbiased customer insights help banks understand what matters most, allowing banks to craft more effective marketing strategies. Messaging should resonate with regional audiences while reinforcing the bank’s reputation as a trusted institution. By addressing the priorities of different customer segments, banks can fight attrition and strengthen their competitive position. 

Regional Variations in Customer Satisfaction 

A one-size-fits-all national approach can fall short in addressing local market differences—especially those around trust and reputation. JD Power research reveals that customers in the New England, Northwest, Upper Midwest and California regions have lower-than-average scores on critical-to-success metrics. These include overall satisfaction; level of trust; likelihood to say they definitely will reuse the bank; and reputation. This regional performance gap is driven in part by a divide among age groups. For example, Gen Z customers in California have a lack of confidence in regional and midsize banks and a preference for national banks. The opposite is true in the New England and Upper Midwest regions, where Gen Z customers display a lack of confidence in national and regional banks and a preference for midsize banks.

Banks on both sides of the size equation must proactively highlight their reputation for satisfying customers to win new business and retain existing accounts. 

Marketing Strategies Based on Data-Driven Regional Insights  

Effective regional marketing requires a nuanced and informed approach with strategically tailored messages that speak to regional customer preferences. 

Regional marketing campaigns help banks to meaningfully engage customers, reinforce a reputation for exceptional customer satisfaction, and build lasting relationships that inspire retention.  

Marketers can make the most of regional consumer data with messaging that meaningfully addresses the concerns of regional banking customers. 

Emphasizing Reputation and Security

A bank’s reputation remains a top reason why customers select a bank, while “security/fraud” is the main reason why customers replace a previous checking account with a new one. Marketers should highlight credible proof of performance, customer satisfaction, and the bank’s demonstrated strength in security and fraud prevention to reinforce and promote their bank’s positive reputation in regional markets. By pairing marketing efforts with both reputation management and clear communication of security and fraud‑prevention capabilities – grounded in real‑world customer experience data – banks can more effectively communicate their trustworthiness, their commitment to protecting customers, their ability to deliver a satisfying experience, and their overall brand value

Developing Regionally Tailored Campaigns 

Banking customers in different regions have distinct priorities and expectations when choosing and working with a financial institution. To connect with customers effectively, banks must create tailored campaigns that address regional concerns, demonstrate their commitment to local markets and highlight how they meet customer needs. 

Final Thoughts 

The banking landscape is changing rapidly. Staying competitive relies on leveraging every advantage. Credible third-party customer insights are more important to marketing efforts across the banking industry than ever before, especially for banks serving clients in a variety of regions and those competing with national players.

Customer insights from reliable sources are useful to banks looking to stand out in a competitive market and understand how they perform when compared with national and regional competitors. Data-driven rankings and recognitions also help consumers avoid exhaustive searches and piecemeal comparisons, saving time, and frustration, and giving a more accurate picture of available choices. 

The results of the JD Power 2026 U.S. Retail Banking Satisfaction Study are coming soon. Stay tuned for the results. 

In the meantime, explore insights from the JD Power 2025 U.S. Retail Banking Satisfaction Study. Read the 2025 press release >

[1] JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2006). Millennials (1982-1994) are a subset of Gen Y.

• Average monthly residential electric, gas and water utility bills total $412 in 2025, up 7% from 2024
• For Q4 2025, average monthly utility bills total $416, up 4.5% from Q3 2025 and 5.1% from Q4 2024
• Electric utilities account largest share of wallet, gas shows sharpest price increase

 

Executive Summary:

As part of its ongoing analysis of customer experience with residential utilities, JD Power tracks the average prices customers pay for electric, gas and water services nationwide. This average price data is tracked in four waves over the course of the year, which are roughly in line with calendar quarters. The following are key highlights from the Q4 2025 analysis.

Average Household Utility Cost Rises 6% in 2025

The average amount paid for monthly residential electric ($189), gas ($122) and water ($101) was $412 in 2025. That’s an increase of 7% ($27) since 2024. On a quarterly basis, average monthly utility bills were $416 in Q4 2025, which is up 4.5% from Q3 2025 and 5.1% versus Q4 2024.  

 

Electric Utilities Account for Largest Wallet Share

Average monthly residential electric bills were $206 in Q4 2025, up 15.7% from Q3 2025 and flat with Q4 2024. The average monthly residential gas bill was $107 and the average monthly residential water bill was $103 in Q4 2025.

 

 

Gas Prices Show Sharpest Annual Rise

The average monthly residential gas utility bill was $122 in 2025, which represents a 13% increase over 2024 ($108). Residential gas utility bills have increased 45% between 2020 and 2025.

 

 

Total Share of Wallet

Monthly utility bills have come to occupy a significant share of consumers’ recurring household expenses. Based on a median annual household income of $80,610^[1], monthly electric, gas and water bills now account for 6.1% of utility customers’ household income.

 

Find out More

This JD Power Quarterly Share of Wallet Tracker for residential utilities is based on data and insights drawn from the JD Power U.S. Electric Utility Residential Customer Satisfaction Study, the JD Power U.S. Gas Utility Residential Customer Satisfaction Study and the JD Power U.S. Water Utility Residential Custom Satisfaction Study.

 

Media Contacts

Brian Jaklitsch; East Coast; 631-584-2200; [email protected] 

Joe LaMuraglia, J.D. Power; East Coast; 714-621-6224; [email protected]

 

[1] United States Census Bureau https://www.census.gov/library/publications/2024/demo/p60-282.html 

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Progressive’s race to #1 in personal lines auto

Progressive’s personal lines posted a strong combined ratio of 87.5 in 2025 amid a softening market and following years of rate hikes and profitability challenges across the insurance industry. Progressive has become a market leader in personal lines auto due in part to Progressive’s strong underwriting discipline and pricing sophistication. 

In the most recent JD Power quarterly Insurance Shopping LIST report, which tracks customer shopping, loyalty, and attrition among the nation’s leading personal lines insurance providers, an interesting trend has emerged for Progressive. 

According to LIST, Progressive had the strongest growth in auto policies in 2025—their new business rates outpaced State Farm and GEICO. At the same time, Progressive also had the highest rate of churn—auto insurance customers leaving them—in 2025; the report also noted shopping rates were on the rise among Progressive’s auto insurance customers in Q4 2025, likely due to increased competition in the market. The latest report can be found here. 

What happens when a company leads in both acquiring (inflow) and losing (outflow) customers? The answer depends on the company. The story is nuanced for Progressive, so uncovering who these customers are and where they are going is key to understanding these trends. 
 

 

Progressive Defector (Outflow) Profile: Who are the customers leaving Progressive?

An above average number of customers with less favorable credit history (fair and poor credit) defected from Progressive in 2025. The company also lost an above average number of “Dianes” (customers with auto and renters) (53%), yet the company seemed to back-fill the loss with new Dianes (55%). 

 

Customer Segment Definitions

• Sam: Has an auto policy but does not rent or own his home, he lives with relatives or has some other living situation
• Diane: Has an auto policy and rents her home
• The Wrights: Own their home but don’t bundle their home and auto policy
• The Robinsons: Own their home and bundle their home and auto policy together

 

A notable proportion of Progressive’s defectors were from Texas, Florida, and California, due in part to increased competition paired with too high premiums and premium hikes over the years in those markets. 

 

Among Progressive’s Florida defectors, an above average number cited either their rates were too high or rate recently increased (50% in Florida vs. 39% nationally for Progressive). Notably, GEICO is capturing a significant proportion of Progressive’s Florida defectors (47%).

Progressive New Customer (Inflow) Profile: Who are the customers coming to Progressive? 

Progressive gained a notable proportion of Dianes (auto and renters) in 2025. Despite its strategy to gain more Robinsons (auto and homeowners), the proportion of Robinsons gained by Progressive (13%) lagged the industry (23%) in 2025. According to the carrier’s financial reports, this is partially due to initiatives to improve profitability. The initiatives, which included restricting new homeowner applications, had an adverse impact on new business growth within this segment.  

 

Customer Segment Definitions

•  Sam: Has an auto policy but does not rent or own his home, he lives with relatives or has some other living situation
• Diane: Has an auto policy and rents her home
• The Wrights: Own their home but don’t bundle their home and auto policy
• The Robinsons: Own their home and bundle their home and auto 

 

Texas and Florida also became states in which Progressive gained a notable number of new customers in 2025. Progressive became more price competitive in Florida after filing for rate reductions so it’s not surprising that 35% of Progressive’s new customers in Florida indicated they were shopping due to their rate being too high with their former carrier (versus 28% nationwide for Progressive).

 

Progressive’s Inflow/Outflow 

The competitive landscape within acquiring and losing customers shows that Progressive lost more defectors to GEICO and State Farm than it gained from each of these companies.  The General received an outsized number of Progressive’s defectors overall, and an even greater number of Progressive defectors in the poor or fair credit history tiers. 

The LIST data shows Progressive acquired slightly more customers from USAA and Liberty Mutual than it lost to these brands.