In the dynamic landscape of insurance shopping, a recent TransUnion report sheds light on sustained trends influencing the market. Auto and property insurance shopping rates showed stability compared to Q2 2023. But when measured against Q3 2022 they rose by 12% and 6%, respectively.
The report, part of TransUnion’s Insurance Personal Lines Trends and Perspectives, delves into the intricacies of auto and property insurance markets. Emphasizing consumers’ behaviors and attitudes, it reveals that the pursuit of lower insurance premiums remains a key factor driving auto insurance shopping.
Auto insurers, faced with a forecasted premium growth of 10.4% in 2023 by the Insurance Information Institute, are employing strategies to enhance profits. Measures such as rate increases, distribution suspension, and stricter underwriting standards have prompted consumers to explore new insurers.
Contributing to this shift is the buoyant new vehicle sales market. A robust labor market and increasing employer return-to-work policies spur these sales. J.D. Power notes a resilient US new automobile market, projecting a 7% sales increase in 2023 over the previous year.
On the flip side, property insurance shopping faces challenges. Depressed home sales and refinancing, coupled with homeowners reluctant to move due to low-interest rates, contribute to a subdued market. Yet, property insurance shopping remains elevated, driven by a quest for lower premiums and an uptick in insurers mandating bundling or multiline policies.
Cyber Security Threats
Crucially, the report underscores the evolving landscape of cyber security threats. With social engineering scams becoming pervasive, insurers are urged to expand their offerings. The report recommends adopting preventative solutions to complement restorative measures. TransUnion’s TruEmpower™ Scam Blocker emerges as a solution, aiding policyholders by blocking cyber threats on mobile devices and laptops.
Matt Cullina, head of TransUnion’s global cyber insurance business, emphasizes the importance of insurers providing robust preventative measures. Consumers seeking guidance and protection in the aftermath of cyber-attacks, find assurance in such measures, fostering a sense of online security and coverage policy stability. “Providing a robust, preventative measure can help policyholders feel safer online and more secure in their coverage policy,” he said.
Source: Insurers’ Efforts to Improve Profitability Drive Auto and Property Insurance Shopping
Other News: Global Cyber Insurance Prices Decrease in Q3 2023(Opens in a new browser tab)