CHICAGO, Feb. 18, 2025 — A recent study by TransUnion revealed that both auto and property insurance shopping experienced a 20% year-over-year increase in Q4 2024. Despite this surge, profitability in the auto and property insurance sectors remained uneven.
The auto insurance market has nearly achieved rate adequacy, while the property insurance market faced constraints due to limited rate increases and significant losses from natural disasters such as hurricanes Helene and Milton. The year 2025 has also started on a challenging note, with wildfires in southern California posing substantial losses for insurers.
Key Findings
The increase in insurance shopping was primarily driven by consumers’ ongoing search for more affordable rates. According to Patrick Foy, senior director of strategic planning for TransUnion’s Insurance business, “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.”
Leveraging Traffic Court Data
Traffic court data has proven to be invaluable in assessing individual drivers throughout the policy lifecycle. Traditional methods, such as referencing state motor vehicle records (MVRs), often have gaps and limitations and can be costly. In contrast, traffic court records are more comprehensive and cost-effective.
TransUnion’s latest report estimates that 11% of drivers have ratable violations that are not recorded in MVRs but can be identified through traffic court records. Insurers using solutions like TransUnion’s TruVision™ Driving History can enhance lead quality and increase customer lifetime value. These solutions can be applied at any stage of the policy lifecycle.
Understanding Generational Preferences
Understanding the preferences of different generations is crucial for insurers to effectively engage with their target audience across various channels. While younger shoppers prefer a seamless digital experience, Baby Boomers still favor discussing policy details over the phone. TransUnion’s TruAudience® suite of marketing solutions can assist insurers with identity resolution, audience building, and measurement.
For more insights, read the latest Insurance Personal Lines Trends and Perspectives Report.
About TransUnion’s Insurance Personal Lines Trends and Perspectives Report
This quarterly publication examines trends in the personal lines insurance industry, including shopping, migration, violation, and credit-based insurance stability. The research is based primarily on TransUnion’s internal data and analyses, covering insurance shopping transactions from July 2023 to December 2024. The report excludes data from California, Hawaii (auto), Massachusetts (auto), and Maryland (property), where credit-based insurance scoring is not used.
About TransUnion
TransUnion is a global information and insights company operating in over 30 countries with more than 13,000 associates. The company enables trust by providing a comprehensive view of consumers, known as a Tru™ picture, which is managed with care. Through innovative solutions extending beyond core credit into areas like marketing, fraud, risk, and advanced analytics, TransUnion facilitates confident transactions and achieves positive outcomes for consumers and businesses worldwide.
