Real estate, auto insurance shopping subsided in Q2, report finds - InsuranceNewsNet

Real estate, auto insurance shopping subsided in Q2, report finds – InsuranceNewsNet

Shopping for real estate and auto insurance in the second quarter of 2022 was generally muted with differences in certain sectors, according to the Latest Trends and Perspectives report from TransUnion, the global information and insights company.

The quarterly report found that shopping for home insurance was up slightly (4%) compared to the same period last year, driven mostly by activity in southern states where shopping was up 12% year-over-year.

Shopping for auto insurance products is down 3% overall compared to last year, apparently as a result of a significant decline by high-risk consumers, as shopping is down 22% compared to the second quarter of 2021.

“We were surprised by the auto shopping behavior,” said Mark McIlroy, Executive Vice President and Head of Insurance Business at TransUnion. “We can see the effects of supply chain disruptions and shortages of new vehicles.”

TransUnion regularly reviews insurance shopping trends, disaggregating the data by geographic region, age, and other factors. It uses customer engagement information from insurance companies and extrapolates across the entire industry. It complements the research with field surveys with consumers to assess current market and insurance trends.

Main results

Several other key findings:

• When comparing consumers across credit levels, there was a clear deviation from the general trend in that consumers with higher credit scores continued to shop for auto insurance.
• Tenant insurance purchases declined significantly (10%) in the second quarter of 2022. While shopping declined across all generations, shopping between Baby Boomer and Silent Generation tenants was down 16% compared to the second quarter of 2021.
• Shopping in the second quarter of 2022 among Generation Z tenants decreased by 12% compared to the second quarter of 2021. This may be attributed to the overall rise in rents: according to a joint analysis by TransUnion and the National Apartment Association of more than 300.00 rental units in In the United States, the average monthly rental rate charges 17% from $1,365 a month to $1,599. The report concluded that rising rents usually push tenants to stay in their places rather than looking for new apartments.

“The lack of new car purchases has limited comprehensive car insurance shopping,” said Michelle Jackson, senior manager of personal property and casualty insurance at TransUnion Insurance. “Even as consumers flock to purchase auto insurance as premiums increase from industry-wide price increases, this cannot overcome the pent-up shopping rates we see from consumers who don’t buy new cars, thus creating a shopping event.”

Immigration affects homeowners insurance

Immigration activity to southern states drove homeowners’ insurance purchases. Comprehensive home insurance shopping saw a modest increase (4%) in the second quarter of 2022, compared to the same period last year. This trend was primarily driven by activity in the southern United States, where shopping was up 12% compared to the second quarter of 2021.

“We continue to see interest in moving to brighter environments, which has led to increased insurance shopping for homeowners in states like Florida and Texas, which are ironically more vulnerable to extreme weather events and expensive insurance,” Jackson said. . “However, consumers in the housing market are increasingly facing headwinds from higher mortgage interest rates and housing costs, which have lowered the buy-and-repurchase rate, and thus insurance shopping.”

The report said that there are indications that the market will recover. According to the Consumer Pulse survey conducted in the second quarter, 32% of consumers said they would apply for a mortgage within the next year, an increase of 4% from the first quarter. Millennials – those between the ages of 25 and 40 – led all generations at 40%. This is consistent with data that has found that homeowners shop by generations, with Generation X and Millennials seeing the highest increase in shopping year-over-year (between 11% – 14%).

“Millennials, as a generation, are the prime movers in a lot of real estate transactions today,” McIlroy said.

Looking ahead, McIlroy said that as the level of loss costs for the insurance industry eases and the supply chain disrupts, the market should begin to thrive.

Doug Bailey is a freelance journalist and writer based out of Boston. It can be accessed at [email protected].

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