SHOPPING SPREE: 46.6 PERCENT OF U.S. DRIVERS SHOPPED POLICIES LAST YEAR
U.S. auto insurance shopping surged in Q2 2025. Nearly half (46.6 percent) of in-force policies were shopped at least once, up 9.4 percent year over year, creating competitive pressure. LexisNexis’ Insurance Demand Meter report also showed policy filings down four percent as rate cuts were offered to sustain business. The direct sales channel led growth at 22.8 percent, while existing policyholders shopped more than uninsured drivers. Insurers responding via rate flexibility may need to focus on retention. “Policyholders will help determine the growth and profitability outcomes for the industry,” said Jeff Batiste.
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COSTLY COLLISIONS: AUTO INSURER LOSSES RISING IN U.S.
The U.S. commercial auto insurance line has posted underwriting losses for 14 consecutive years, including US$4.9 billion lost in 2024 alone, thanks to rising claims severity. Inflation, advanced vehicle repair costs, and labor costs are cited as key pressures squeezing insurers’ ability to offset losses. Canadian repair shops may see the effects through reduced fleet programs, tighter deductibles, or insurer scrutiny of repair proposals. One analyst noted insurers had trimmed about six percentage points off administrative ratios to claw back margins. “Adverse loss development has become a constant drain on commercial auto results,” said Christopher Graham.
collisionrepairmag.com/15767844
SYSTEM SHIFT: MANITOBA ADOPTING OWNER INSURANCE MODEL
Manitoba is replacing the driver based basic auto insurance system with a registered owner model that links coverage to vehicle ownership. The 2025 board approved a 5.7 percent rate increase, raising annual premiums by approximately $50 per vehicle. Proposed changes also hike the basic deductible from $750 to $1,000 and expand the driver safety rating program. The shift is aimed at smoothing volatility in premiums while maintaining access under a public insurer structure.
collisionrepairmag.com/15768820
ALBERTA EXIT: ANOTHER AUTO INSURER DEPARTS PROVINCE
CUMIS General Insurance Company will exit Alberta’s auto insurance market by the end of 2025, citing escalating claim costs and provincial rate caps. The withdrawal adds to insurer pullouts already underway, narrowing coverage options for drivers in that province. Policyholders will retain coverage until expiry in 2026 and receive guidance for replacing policies. “As auto insurers reduce available coverage … brokers are increasingly unable to find coverage options,” said Jhnel Weller Hannaway.
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