Auto and property insurance purchases continued to grow in the first quarter of the year, according to TransUnion’s Personal Line Insurance Trends and Outlook for the second quarter of 2023.
Despite interest in lower premiums, more consumers are turning away from telematics programs, according to the report. The number of consumers who accepted the telematics offer was 53%, or 12 percentage points, lower than a year ago, at 65%.
Michelle Jackson, senior director of personal property and casualty insurance at TransUnion’s insurance business, said in an email response: “Some things have changed since we saw a surge in telematics adoption last year. their driving habits may cause their insurance rates to increase. In addition, some telematics programs have evolved to withhold any discounts until the end of the trial period.
“While more than half of those who proposed a telematics program still opt in, the increased risk and delayed rewards have combined to make telematics less attractive to price-sensitive, risk-averse clients.”
report suggests that digitalization has made it easier to buy insurance online, but searching for lower premiums through digital channels does not result in the lowest prices.
Consumers who received an offer from an agent increased by 25% from previous surveys. The report notes that the inability to find lower rates online may push consumers to agents who, for example, can bundle policies.
