Record shopping with flat switching
UK drivers shopped for motor insurance at a record rate in the first half of 2026, with an average of 403,000 consumers shopping each day—an increase of approximately 31,000 per day compared to the previous year, according to the LexisNexis Insurance Demand Meter UK. Despite this surge, the proportion of policyholders who switched providers held steady at around 22%, leaving 78% remaining with their existing insurer. The rise in shopping activity coincides with motor premiums beginning to increase again, following Association of British Insurers data showing the average premium paid in the second quarter of 2026 reached £566, up 1% on the previous quarter. Insurers paid out a record £3.2 billion in motor claims during the same period, while EY projected a net combined ratio of 111% for UK motor insurers this year.
Changing fleet dynamics
The composition of vehicles entering insurer books is shifting significantly, creating distinct renewal pressures for brokers. Hybrids accounted for 46% of new private car registrations in the first half of 2026, and fully electric vehicles represented a further 24%, combining for 70% of the total. Internal combustion engine registrations fell 9% year on year. LexisNexis highlighted that these vehicles carry different repair, technology, and risk characteristics, requiring accurate vehicle-level data on powertrains and advanced driver assistance systems to ensure proper pricing and claims handling.