TransUnion Insurance Trends and 2023 Outlook Report Points to More Online Life Insurance Shopping
12 Januar 2023 - 02:00PM
More than four in 10 consumers go online or use an app when
shopping for life insurance, according to a new TransUnion (NYSE:
TRU) report. This is a significant shift as the vast majority of
consumers traditionally purchase their life insurance policies
through an agent.
However, this is also very much on-trend as the insurance
industry undergoes an evolution toward digitalization across all
segments and policy touchpoints, as detailed in TransUnion’s
Insurance Trends and 2023 Outlook Report.
To help prepare insurers for what’s next, TransUnion conducted a
survey of 2,907 U.S. adult consumers with active auto, homeowners,
renters and/or life insurance policies during October 2022. The
findings highlight consumer attitudes towards online insurance
shopping, auto telematics, policy servicing, submitting claims and
“Across the board, we are observing consumers increasingly
looking for digital experiences when it comes to engaging with
insurers,” said Mark McElroy, executive vice president and head of
TransUnion’s insurance business. “Importantly, we’re seeing the
life insurance industry making strides to meet consumer
One of the most important advancements in the life insurance
space is that companies are streamlining what was once a very
cumbersome process. Applicants had to submit to blood draws and
physical exams to obtain a basic quote. Insurers can now leverage
rich data sources, including medical scores and credit-based scores
that expedite the underwriting process and eliminate the need for
in-person home visits or invasive testing.
While this is good news for consumers already in the market, the
survey found more than one third (34%) of consumers do not have a
life insurance policy. The top reason given for this choice was
that they don’t believe they need one—underscoring the need for
insurers to make their value proposition more clear.
To this end, marketing efforts are becoming more sophisticated.
Insurers are creating direct-to-consumer brands that complement and
enhance agent-driven sales by providing education to consumers,
using clear language to help them understand how to bundle life
insurance policies with other financial products.
Mismatched supply/demand in commercial insurance digital
offerings In the commercial insurance space, TransUnion’s
survey revealed that 91% of respondents would be willing to get a
quote online for commercial insurance; however, only 28% have
actually done so. This represents a gap in offerings from
commercial insurers and a huge opportunity for companies willing to
invest in a more streamlined and automated process.
In addition, TransUnion’s report found two-thirds of respondents
said their rates increased — and 20% said they went up by double
digits. While profitability for insurers is important, dramatic
rate hikes for businesses already burdened by inflation could
backfire and drive customers to shop for lower premiums.
“Rate increases are only going to carry companies so far toward
profitability, and customers are increasingly at their limits,”
said McElroy. “Creating opportunities to provide customers
efficient quoting and underwriting, in addition to valuable
coverage packages, is one of the best alternative strategies to a
better bottom line.”
Personal lines plateaus in its digitalization
journeyThe personal lines insurance industry is facing
similar challenges. With a limited ability to raise rates and a
significant amount of digitalization already achieved, insurers now
must fine-tune efforts to stay competitive and profitable.
One area in which insurers may want to focus resources is
diversifying and optimizing their marketing spend across channels.
Access to data can help marketers reach the best prospective
consumers more effectively in the channels where they're most
likely to respond.
After an initial surge in early 2022, telematics adoption
remained almost flat throughout the year, with 60% of consumers who
were offered a telematics program opting in to participate. While
most reported being satisfied with their program, some did see
their rates increase, which may hinder continued adoption.
“The value proposition of telematics is that consumers give up
some sense of privacy or autonomy to provide insurers a
demonstrably safe driving record in real-time,” said McElroy. “If
they’re not seeing that translate into lower rates, or if their
rates actually increase, some may not continue with the
Please click here to download a full version of the
TransUnion Insurance Trends and 2023 Outlook Report.
MethodologyThis online consumer survey of 2,907
U.S. adults, who were 18 years of age and older, was conducted
October 20-28, 2022 by TransUnion in collaboration with third-party
research provider, Dynata. To ensure general population sample
representativeness across United States resident demographics, the
survey included quotas to balance responses to the census
statistics on the dimensions of age, gender, household income, race
and region. Generations are defined as follows: Gen Z, born
1995–2004; Millennials, born 1980–1994; Gen X, born 1965–1979;
and Baby Boomers, born 1944–1964. These research results are
unweighted and statistically significant at a 95% confidence level
within ±1.82 percentage points based on calculated error
About TransUnion (NYSE: TRU)TransUnion is a
global information and insights company that makes trust possible
in the modern economy. We do this by providing an
actionable picture of each person so they can be reliably
represented in the marketplace. As a result, businesses and
consumers can transact with confidence and achieve great things. We
call this Information for Good®.
A leading presence in more than 30 countries across five
continents, TransUnion provides solutions that help create economic
opportunity, great experiences and personal empowerment for
hundreds of millions of people.
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