Inflation in auto and home prices is reducing churn in those major purchases, which is having a downstream effect on churn in the insurance market for each as well.
That’s according to
TransUnion says that with supply low and prices high for autos and homes, consumers are now more reluctant to make those purchases. So, insurers will have to look toward other ways to spur shopping behavior.
For example, TransUnion found that about 49% of customers who were offered usage-based insurance took up the product.
“Shoppers are looking around because auto insurance rates are still going up. It’s important to identify what are the things that are driving them [to shop] and understand that,” McElroy says. “If UBI happens to be an option for that company and that user, it would be an opportunity to meet them, try to understand why they are shopping and what’s driving them to that situation and meet them where they are.”
For home insurers, digitally focused add-ons to home insurance like smart home programs or repair options might be useful in providing those insurers a similar path to new engagement and sales. McElroy adds.
“Part of the survey data that we collected [indicated] as well that there is a much higher propensity of people that want to engage electronically,” he says. “Those driving a huge amount of the transactions, whether they are auto purchases or certainly home purchases, there's a huge opportunity to leverage that digital journey across the board from a carrier's perspective and ensure that you are walking along with that consumer.”
