Insurance shopping likely to remain strong in 2024, TransUnion says

Chicago, Feb. 22, 2024 — Personal and auto insurance shopping is likely to increase in 2024 due to several market factors, according to new research from TransUnion. This observation comes at a time when shopping for both insurance lines dropped at the end of 2023, mostly because of predictable seasonality as consumers focused on holiday gift buying and travel.

Increases in insurance shopping will partly be spurred on by changing mortgage rates, which are expected to decline in 2024. As a result, consumers are expected to enter the housing market and shop for insurance along with new homes. In addition, 17% of consumers plan to purchase or lease a new vehicle in 2024—up from 11% the year prior, which also typically constitutes an insurance shopping event. These findings and more are part of TransUnion’s latest quarterly Insurance Personal Lines Trends and Perspectives Report.

“We are seeing signs that consumers have begun to accept that premiums are higher across the board, so there is less desire to shop with multiple carriers,” said Stothard Deal, vice president of strategic planning for TransUnion’s insurance business. “That said, there are other factors that will likely inspire consumers to shop.”

The report notes that insurers have made significant progress in closing the gap for rate adequacy, with some reporting near-target profitability. As a result, marketing efforts are likely to pick up in 2024. Consumers may be more likely to consider switching with increased ad exposure.

Approaching marketing like pricing

While the financial picture for insurers is improving, profitability remains in a precarious position. The report notes that insurers’ marketing spend will need to be efficient and highly targeted to yield effective results.

A critical first step is to enhance customer data to ensure consumers, who might have multiple email addresses or other outdated contact information on file, only hear from companies through current and appropriate channels. De-duplicating records with identity resolution and appending up to date points of contact helps carriers reach the intended customer while reducing waste from direct mail advertisements being sent to old addresses and multiple locations.

In addition, audience segmentation is critical to find and reach high-value consumers. For example, Millennials, Gen Z and high credit-based insurance score (signifying the lowest risk) consumers are most likely to shop for insurance in general; however, insights into attitudes and preferences, asset ownership or other consumer behaviors may indicate the prospect is a less valuable target.

“In the same way that actuaries look at multiple layers of information to better calculate risk, marketers can use rich data to segment their target audiences and reveal high-value individuals,” said Deal. “This could include combining traditional characteristics like financial behavior and driving record with other individual and household profiles and behaviors.”

Marketers who refine their audiences will realize savings and efficiency while feeding more high-value customers into the sales pipeline.

Click here to read the Insurance Personal Lines Trends and Perspectives Report.