CHICAGO, Feb. 18, 2025 – According to new research from TransUnion (NYSE: TRU), both auto and property insurance shopping experienced a 20% year-over-year increase during the fourth quarter of 2024. Despite the rise in shopping activity, profitability within the auto and property insurance sectors presents a mixed picture.
While the auto insurance market shows signs of achieving rate adequacy, the property insurance market faces challenges. These include limited rate increases and significant losses stemming from natural disasters such as Hurricanes Helene and Milton. The start of 2025 has already brought further difficulties, with wildfires in southern California posing substantial losses for insurers. The primary driver behind increased shopping activity in both auto and property insurance is consumers seeking lower rates.
These findings and more are detailed in TransUnion’s latest quarterly Insurance Personal Lines Trends and Perspectives Report.
“The current market provides great potential for acquisition,” stated Patrick Foy, senior director of strategic planning for TransUnion’s Insurance business. “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.”
Traffic Court Data Proves Indispensable
Driving record information is a crucial factor in assessing an individual throughout the policy lifecycle. Traditional methods, like using state motor vehicle records (MVRs), can have data gaps, limitations, and are costly to obtain. Conversely, traffic court records offer a more comprehensive picture of a driver’s history of violations and are significantly less expensive to access.
TransUnion’s recent report estimates that 11% of drivers possess a ratable violation that is detectable through traffic court records but is absent from MVRs. Insurers who utilize solutions like TransUnion’s TruVision™ Driving History suite to access traffic court data can enhance the quality of their leads and boost customer lifetime value. These solutions are adaptable for use at any stage of the policy lifecycle.
In addition, insurers can improve their effectiveness across different channels by understanding generational preferences. Younger consumers favor a seamless digital experience, while Baby Boomers often prefer discussing their policy details over the phone. The TruAudience® suite of marketing solutions from TransUnion can help with identity resolution, audience building, and measurement.
[Read the latest Insurance Personal Lines Trends and Perspectives Report.](link to report if available)
About TransUnion’s Insurance Personal Lines Trends and Perspectives Report
This quarterly publication analyzes trends in the personal lines insurance industry, including shopping patterns, migration, violations, and credit-based insurance stability. The research incorporated in the Trends and Perspectives Report is primarily based on extensive internal data and analyses by TransUnion. The report includes data on insurance shopping transactions from July 2023 to December 2024, but excludes shopping data from California, Hawaii (auto), Massachusetts (auto), and Maryland (property), where credit-based insurance scoring is not used for insurance rating or underwriting.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. The company aims to foster trust through reliably representing each individual in the marketplace. This is achieved with a ‘Tru™’ picture of each person that gives an actionable view of consumers, all managed with care. Through strategic acquisitions and investments in technology, TransUnion has developed innovative solutions that extend beyond its core credit services to include marketing, fraud, risk, and advanced analytics. These developments enable confident transactions for consumers and businesses alike, facilitating opportunity, enhanced experiences, and personal empowerment, defined as Information for Good®.
Contact:
Dave Blumberg
TransUnion
Email: [email protected]
Telephone: 312-972-6646
