Migration Trends in 2024: Implications for Insurers
A recent study by TransUnion found that Americans who relocated in 2024 preferred more affordable cities and suburbs in the southern United States. The top destinations in Texas were North Houston, Fort Worth, and Austin. Overall, consumers moved away from expensive and densely populated urban areas to more affordable locations.
The research revealed that over a quarter (26%) of Americans who moved in 2024 relocated distances ranging from 51 miles to 250 miles or more. “As consumers continue to find new places to settle, it’s crucial for insurers to stay on top of trends across segments,” said Patrick Foy, senior director of strategic planning for TransUnion’s Insurance business. “These changes can impact customer acquisition, risk, and engagement.”
Top Migration Trends and Implications
The top five inbound and outbound markets in 2024 were:
- Inbound: North Houston, TX; Fort Worth, TX; Austin, TX; Phoenix, AZ; Nashville, TN
- Outbound: Miami, FL; Houston, TX; Queens, NY; South Florida, FL; Oakland, CA
The study found that migration trends varied across generations. Gen Z consumers moved to cities like New York and Chicago, contrary to older generations who left these cities. “Gen Z’s migration patterns resemble those of Millennials in 2010, likely due to the appeal of big city living and career opportunities,” Foy explained.
Challenges for Life Insurers
When consumers move across state lines, public records may not update accordingly, causing issues for life insurance providers. They may struggle to locate beneficiaries or receive notification of death for policyholders. The majority of states require life insurers to monitor policyholders’ mortality status and conduct due diligence to contact beneficiaries. However, limited access to the Social Security Death Master File (SS DMF) has made this task challenging.
TransUnion’s TruLookup Deceased Data uses multiple sources to help insurers overcome this challenge. “Life insurance companies relying solely on public records will likely fail to deliver on their promises,” said Karen Malone, senior director of strategic planning for TransUnion’s life insurance business.
Assessing Driver Risk
When consumers move to a new state or receive a traffic violation outside their license state, their motor vehicle report (MVR) may not capture these events. TransUnion research found that traffic violations increased by 8% in 2024 compared to 2023, highlighting the need for insurers to look beyond MVRs and investigate court records to assess driver risk accurately.
For more information on TransUnion Insurance Risk solutions, including TruVision Driving History, visit their website. Learn more about TransUnion solutions for life insurance here.
