Despite Seasonal Dip in Q4 2023, Insurance Shopping Likely to Remain Strong in 2024
23 February 2024 - 12:00AM
Personal and auto insurance shopping is likely to increase in 2024
due to several market factors, according to new research from
TransUnion (NYSE: TRU). This observation comes at a time when
shopping for both insurance lines dropped at the end of 2023,
mostly because of predictable seasonality as consumers focused on
holiday gift buying and travel.
Increases in insurance shopping will partly be spurred on by
changing mortgage rates, which are expected to decline in 2024. As
a result, consumers are expected to enter the housing market and
shop for insurance along with new homes. In addition, 17% of
consumers plan to purchase or lease a new vehicle in 2024—up from
11% the year prior, which also typically constitutes an insurance
shopping event. These findings and more are part of TransUnion’s
latest quarterly Insurance Personal Lines Trends and Perspectives
Report.
“We are seeing signs that consumers have begun to accept that
premiums are higher across the board, so there is less desire to
shop with multiple carriers,” said Stothard Deal, vice president of
strategic planning for TransUnion’s insurance business. “That said,
there are other factors that will likely inspire consumers to
shop.”
The report notes that insurers have made significant progress in
closing the gap for rate adequacy, with some reporting near-target
profitability. As a result, marketing efforts are likely to pick up
in 2024. Consumers may be more likely to consider switching with
increased ad exposure.
Approaching marketing like pricingWhile the
financial picture for insurers is improving, profitability remains
in a precarious position. The report notes that insurers’ marketing
spend will need to be efficient and highly targeted to yield
effective results.
A critical first step is to enhance customer data to ensure
consumers, who might have multiple email addresses or other
outdated contact information on file, only hear from companies
through current and appropriate channels. De-duplicating records
with identity resolution and appending up to date points of contact
helps carriers reach the intended customer while reducing waste
from direct mail advertisements being sent to old addresses and
multiple locations.
In addition, audience segmentation is critical to find and reach
high-value consumers. For example, Millennials, Gen Z and high
credit-based insurance score (signifying the lowest risk) consumers
are most likely to shop for insurance in general; however, insights
into attitudes and preferences, asset ownership or other consumer
behaviors may indicate the prospect is a less valuable
target.
“In the same way that actuaries look at multiple layers of
information to better calculate risk, marketers can use rich data
to segment their target audiences and reveal high-value
individuals,” said Deal. “This could include combining traditional
characteristics like financial behavior and driving record with
other individual and household profiles and behaviors.”
Marketers who refine their audiences will realize savings and
efficiency while feeding more high-value customers into the sales
pipeline. The capability to segment a marketing audience based on
first- and third-party attributes is available through TransUnion’s
TruAudience™ Identity and Audience Solutions.
Click here to read the Insurance Personal Lines Trends and
Perspectives Report.
About TransUnion’s Insurance Personal Lines Trends and
Perspectives ReportThis quarterly publication examines
trends in the personal lines insurance industry, including
shopping, migration, violation, credit-based insurance stability
and more. The Trends and Perspectives Report research is based
almost entirely on TransUnion’s extensive internal data and
analyses. It includes information on insurance shopping
transactions from Jul 2022 to December 2023. However, the report
excludes shopping data from insurance customers in California,
Hawaii (auto), Massachusetts (auto), and Maryland (property), where
credit-based insurance scoring information is not used for
insurance rating or underwriting.
About TransUnion (NYSE: TRU) TransUnion is a
global information and insights company with over 13,000 associates
operating in more than 30 countries. We make trust possible by
ensuring each person is reliably represented in the marketplace. We
do this with a Tru™ picture of each person: an actionable view of
consumers, stewarded with care. Through our acquisitions and
technology investments we have developed innovative solutions that
extend beyond our strong foundation in core credit into areas such
as marketing, fraud, risk and advanced analytics. As a result,
consumers and businesses can transact with confidence and achieve
great things. We call this Information for Good® — and it leads to
economic opportunity, great experiences and personal empowerment
for millions of people around the
world. http://www.transunion.com/business
Contact |
Dave Blumberg |
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TransUnion |
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E-mail |
david.blumberg@transunion.com |
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Telephone |
312-972-6646 |
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