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TransUnion reports rising auto insurance shopping amid premium hikes

EditorNikhilesh Pawar
Published 14/11/2023, 14:06
© Reuters.
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CHICAGO - TransUnion (NYSE:TRU)'s latest quarterly report has highlighted a surge in auto insurance shopping as consumers respond to lower premiums and a robust labor market. Industry experts from the Insurance Information Institute are forecasting a significant 10.4% increase in auto insurance premiums for 2023, which is double the rate of growth seen in 2022. This uptick is attributed to insurers raising rates and tightening underwriting standards to maintain profitability, according to Stothard Deal from TransUnion.

The report also notes that the strong labor market and policies encouraging a return to work have spurred new vehicle sales, which in turn fuels the demand for auto insurance. J.D. Power supports this observation, projecting a 7% rise in U.S. new automobile sales this year compared to last.

In contrast, while home sales and refinancing have seen a downturn, property insurance shopping remains robust compared to 2022. Homeowners appear hesitant to sell given the currently low-interest rates, and insurers are responding by often requiring bundled policies that combine various types of coverage. To keep policyholders engaged, insurers are considering adding services beyond basic coverage.

As cyber security threats evolve, TransUnion advises insurers to broaden their offerings. The introduction of tools like TransUnion’s TruEmpower™ Scam Blocker is a step towards enhancing individual and business protection against cyber threats such as fraudulent websites and phishing attempts. Matt Cullina of TransUnion emphasized the importance of such preventative measures in strengthening the security of policyholders' online activities and their coverage policies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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