Auto, property insurers must maximize retention in 2026

Chicago, Nov 11, 2025 —The coming year may pose challenges to insurers that are outside their control, such as economic uncertainty and weather catastrophes. However, there are several steps they can take to improve customer retention, which has fallen in 2025, according to TransUnion’s latest analysis.

The research includes a survey of consumers’ attitudes and plans for managing their property and auto insurance policies over the coming year. These findings and many more insights on moderating rates and profitability are included in TransUnion’s 2026 Trends and Outlook Report.

“The landscape in 2026 will continue to be increasingly competitive, especially for auto policy growth,” said Patrick Foy, senior director of strategic planning for TransUnion’s Insurance business. “Using targeted marketing to speak to consumers about what they value most will create a significant advantage.”

Among the top reasons consumers said would make them more likely to stay with their current auto insurance provider were proactive outreach about premium discounts, contacting customers prior to renewal regarding any rate increases, and having a well-known brand. Gen Z and Millennials were more drawn toward brand strength, while Gen X and Boomers indexed higher in valuing proactive outreach.

In addition, carriers can boost loyalty by communicating through the right channels. Younger customers remain more receptive to email and Boomers favor the phone or person-to-person interaction. Telephone is still preferred across generations for handling claims—so AI chat and app-based updates should augment, not replace, live support.

Insurers should also consider proactive outreach to address customers’ curiosity about cost savings.

The top changes consumers anticipate making to their insurance needs within the next 12 months are:

• Adjusting coverage and/or deductibles to lower premiums

• Bundling auto with home or renter’s insurance

• Enrolling in additional premium discount programs

Small business owners demand digital service — and broader coverage

As mentioned previously, for small businesses the line between personal and commercial insurance continues to blur, and owners increasingly expect the same digital experiences they have through their personal auto and property policies. The report found that 91% of business customers prefer streamlined online customer experiences — but only 34% say they actually receive them. That's a clear opening for carriers that can deliver digital quoting, binding and service at scale.

Cyber coverage is another area of both exposure and opportunity. In TransUnion’s survey, more than one in three business owners reported experiencing a cyber-related incident in the past year. Among insurers working with Cyberscout, a TransUnion brand, social engineering accounted for about a third of cyber loss payments in 2024, and the absence of social-engineering coverage drove a majority of all commercial claim denials in 2023.

Yet over half of surveyed firms had not purchased cyber coverage in the past year, and more than a quarter said it was never offered. More than two-thirds would consider changing insurers if their carrier does not provide it, highlighting both the urgency and the opportunity for executive cyber options that bridge workplace and household exposures.

“Commercial insurers have a big opportunity to differentiate themselves through great digital experiences that are on par with what customers have come to expect on the personal lines side of the business,” said Scott Learn, advisor for commercial insurance strategic planning at TransUnion. “Beyond that, adding value through cyber insurance coverage will set insurers apart as partners and trusted advisors helping to protect small businesses.”

Read the full 2026 Trends and Outlook Report here.