The fourth quarter of 2022 saw an
Holding the line on rents and housing prices, or cutting them, may remain tough this year, according to Michelle Jackson, senior director of personal property and casualty insurance in the insurance practice TransUnion. Jackson is an author of the report, "
"If rent prices start to come down a little bit, then people can start moving again. They were locked in for a while with high prices where they weren't moving," she said. "As costs continue to rise and are not expected to come down in 2023 -- the cost of vehicles, the cost of a home – the question is, will shopping for price continue to persist enough that it will outweigh the fact that people aren't necessarily buying the way they used to."
The rates for
"They will shop and switch all the time, always striving for that cheapest price," she said. "We're seeing the shopping rates go up on a year-over-year basis. Rates have been increasing so much just because of loss costs rising and carrier rates. Rates are going up 5, 10, 15 or 20%. It's driving more and more consumers to just be more price sensitive around what they're paying."
According to TransUnion,
Also, carriers can expect a rise in auto claims, which makes the auto insurance space more vulnerable, according to TransUnion's trends report.
In this insurance market climate, insurers' next move appears to be focusing on cyber incident insurance, especially because 95% of cyber incidents can be resolved by incident response teams without having claims, as TransUnion's insurance trends report stated.
"In a time of profitability constraints, insurers are looking for ways to provide value-add services.