With Few Exceptions, Personal Insurance Purchases Slowed in Q2 2022

TransUnion

A new report from TransUnion highlights trends in the homeowner, mortgage and auto insurance markets.

CHICAGO, Aug. 25, 2022 (GLOBE NEWSWIRE) — Auto insurance purchases were down 3% in Q2 2022 compared to Q2 2021. This was driven primarily by a sharp decline in high-risk buyers, while purchases were down 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 generally subdued, with 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 new car purchases has slowed auto insurance purchases,” said Michelle Jackson, head of property and casualty insurance for TransUnion’s insurance business. “Even if more consumers are purchasing their auto insurance as premiums rise from companies that are expanding, this won’t offset the price reductions we’re seeing from consumers not buying new cars, which is creating a shopping spree.”

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. This was mainly driven by activity in the Southern United States, where purchases were up 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 are hot weather and expensive insurance states,” Jackson said. . “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 dropped significantly (10%) in Q2 2022. While purchases were lower across all generations, purchases among Baby Boomer and Silent Generation renters were down 16%, compared to Q2 2021 .

“This is only being renewed after the huge increase seen in this same category last year, when millions of older homeowners secured their home equity and moved into the rental market. Because they are more financially stable, they are able to buy or keep their 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 a joint study by TransUnion and the National Apartment Association of more than 300,000 units in the US . , the average monthly rent increased 17% from $1,365 per month to $1,599, comparing Q1 2021 to Q1 2022. Rising rents often cause renters to stay in place 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, migration, defaults, consolidation of credit-based insurance and more. The Trends and Perspectives Report research is based on TransUnion’s internal data and analysis. It also includes information on insurance sales from January 2021 to July 2022. However, the report does not include data from insurance customers in California, Hawaii, and Massachusetts, where credit-related insurance interest rates are not used for insurance pricing or underwriting. .

About TransUnion (NYSE: TRU)
TransUnion is a global information and communications company that makes reliability possible 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®.

With a leading presence in more than 30 countries on five continents, TransUnion provides solutions that help create economic opportunities, better experiences and empower hundreds of millions of people.

http://www.transunion.com/business

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Dave Blumberg

TransUnion

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