Consumers' search for lower rates continue: TransUnion

A year-over-year, 20% increase in auto and property insurance shopping is linked to consumers' search for lower premium costs, according to the latest quarterly report from TransUnion, Insurance Personal Lines Trends and Perspectives Report.

Auto insurance saw higher profits while property insurance is down because of climate-related disasters, according to the report. One factor related to the profitability in auto insurance may be linked to the stabilization in personal auto repair and replacement costs. The Insurance Information Institute is forecasting an average annual increase of 4.0% over the next two years, according to the report. 

There is some potential in using traffic court record data rather than state motor vehicle reports (MVR), which can be costly, according to the report. Court records are often more affordable to deploy across a policy lifecycle.

Patrick Foy, senior director of strategic planning for TransUnion's insurance business, said in a statement to Digital Insurance:

"Insurers have significant upside in leveraging traffic court records throughout the insurance lifecycle. More than 10% of individuals' driving records have one or more ratable violations which show as 'clean' on state MVRs. By using traffic court records, insurers can improve profitability through improved marketing selection, underwriting and pricing risk, and adjudicating claims compared to MVRs alone or in lieu of ordering an MVR."

There are challenges related to customer acquisition and retention and 40% of shoppers switched insurance carriers, which has been similar since 2023, but higher than historical averages. It appears that insurers may increase their marketing efforts this year, according to the report, specifically those in auto insurance. 

Foy said in the press release: "The current market provides great potential for acquisition. The best moves insurers can make to procure high quality prospects is to use data segmentation, enabling them to market to the best potential customers."

The Trends and Perspectives Report research is based on TransUnion's data and insurance shopping transactions from July 2023 to December 2024. The report excludes shopping data from insurance customers in California, auto in Hawaii, auto in Massachusetts, and property in Maryland, where credit-based insurance scoring information is not used for insurance rating or underwriting.