With Few Exceptions, Personal Insurance Purchases Slowed in Q2 2022

CHICAGO, Oga. 25, 2022 (GLOBE NEWSWIRE) — Auto insurance purchases were down 3% overall in Q2 2022 compared to Q2 2021. That trend was driven primarily by a sharp decline in high-risk consumers, where purchases fell 11%, compared to Q2 2021.TransUnion’s (NYSE: TRU) new Personal Lines Insurance Trends and Perspectives Report found sales and car insurance sales in Q2 2022 were mostly subdued, with a few exceptions in some sectors.

When comparing consumers in all credit categories, there was a clear trend as consumers with high credit continued to increase their purchases of auto insurance.

Buying Car Insurance by Credit Tier (Q2 2022 vs Q2 2021)

Small Loans (300-500) Intermediate Loans (501-700) Advanced Loans (701+)
-11% -3% 4%

“The lack of buying new cars prevented me from buying car insurance,” he said Michelle Jackson, senior director of personal property and casualty insurance, in TransUnion’s insurance business. “Even if more consumers are buying their car insurance as premiums rise from companies that are expanding, this will not overcome the price reductions we are seeing from consumers not buying new cars, which is creating a buffer zone.”

The practice of moving to southern states is driving home owners to buy insurance
Homeowners insurance purchases increased slightly (4%) in Q2 2022, compared to the same period last year. That culture was largely driven by events in the Southern United Stateswhere the purchase was 12%, compared to Q2 2021.

“We’re still seeing interest in moving to warmer climates, which has led to more homeowners buying insurance in states like. Florida and Texas, which ironically are the countries with the most weather and the most expensive insurance,” said Jackson. “However, buyers in the housing market are facing many problems due to the increase in interest rates and the cost of housing, which has reduced the number of purchases and renovations, and therefore, the purchase of insurance.”

It is possible that the market will see a return. According to the TransUnion Consumer Pulse survey conducted in Q2 this year, 32% of consumers said they would apply for a mortgage within the next year—an increase of 4% from Q1 2022. Among those surveyed, Millennials led all generations at 40%. This is similar to what we’ve seen in homeownership over the generations, with Gen X and Millennials seeing the biggest increase in purchases year-over-year (between 11%-14%).

Tenant’s responsibility in property insurance
Another contributing factor to the decline in home insurance is that sales of renter’s insurance decreased significantly (10%) in Q2 2022. Although purchases were at an all-time low, purchases among Baby Boomer and Silent Generation renters were down 16%, compared to Q2 2021.

“This is just coming off the back of the huge increase seen in this same category last year, when millions of older homeowners spent their money and moved into the rental market. Because they are more financially stable, they can buy or save money to buy their new rental home,” added Mr. Jackson.

In addition, purchases in Q2 2022 among Gen Z renters decreased by 12%, compared to Q2 2021. This may be due to the increase in rent: According to the agreement. TransUnion and National Apartment Association analysis of over 300,000 rental units in the USthe average monthly rent rose 17% from $1,365 month that $1,599comparing Q1 2021 to Q1 2022. Higher rents often lead people to stay instead of looking for a new home.

For more information on the insurance industry markets, the full report can be found Here.

About TransUnion’s Insurance Trends and Perspectives Report
At first, a Personal Lines Insurance Shopping Report, the three-month publication examines current trends in the insurance industry, including acquisitions, migrations, defaults, consolidation of credit-based insurance and more. The Trends and Perspectives Report research is based on TransUnion’s internal data and analysis. It includes information about purchasing insurance from January 2021 to July 2022. However, the report does not include data from insurance customers in California, Hawaiiand Massachusettswhere the principles of credit-based insurance policy are not used in underwriting insurance premiums.

About TransUnion (NYSE: TRU)
TransUnion is a global information and knowledge company that builds trust in today’s economy. We do this by providing a realistic picture of each person so that they can be reliably represented in the market. As a result, businesses and consumers can act with confidence and achieve great things. We call this Information for Good®.

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Source: TransUnion