Despite Seasonal Dip in Q4 2023, Insurance Shopping Likely to Remain Strong in 2024

CHICAGO, Feb. 22, 2024 (GLOBE NEWSWIRE) -- 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 .

“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 pricing

While 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A critical first step is to enhance customer data to ensure consumers, who might have multiple email addresses or other outdated contact information on file, only hear from companies through current and appropriate channels.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™ and Solutions.

to read the Insurance Personal Lines Trends and Perspectives Report.

About TransUnion’s Insurance Personal Lines Trends and Perspectives Report

This 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.