CHICAGO, IL--(Marketwired - Jan 29, 2014) - According to a new TransUnion Auto Insurance Shopping Index, consumers who shop for insurance and receive a quote are 350% more likely to shop again in the next year than policyholders who did not receive a quote. The TransUnion report also found that more than half (55%) of policyholders who shop receive two or more quotes in an annual period.
"More than a billion dollars are spent each year on auto insurance advertising, most of which urges consumers to switch their policies to another carrier," said Mark McElroy, executive vice president of TransUnion's insurance business unit. "Our proprietary data is able to track actual trends in new business auto insurance since 2009, improving the industry's access to strategic information on auto insurance shopping."
Shopping rates for auto insurance are down about 4% in the 12 months ending June 2013 relative to the full year of 2012 and down about 7% relative to a year earlier. While 15.1% of the credit-active population shopped for new auto insurance policies in the 12 months ending June 2013, this was down from 15.7% for the full 2012 year and 16.2% for the 12 months ending June 2012.
TransUnion's proprietary data provides insight into the characteristics of auto insurance shoppers and what motivates them to shop. Among other characteristics, the data show that younger people tend to shop for auto insurance more frequently, and auto insurance shopping peaks at age 25 for both men and women.
Younger women (ages 25-40) are more active auto insurance shoppers than younger men, but that trend reverses at mid-life. After age 40, the percentage of women who shop for new policies declines, while the shopping rate among men stays relatively stable.
While auto insurance shoppers tend to be younger, those who are in the process of, or have recently changed their place of residence also tend to be heavy shoppers. Compared to non-movers, consumers who move residences are 200% more likely to shop for auto insurance before their move; 130% more likely during the month of their move; and 60% more likely one month after the move.
"In the competitive auto insurance market, data and analytics can mean the difference between winning and losing, as a result of low retention and adverse selection," McElroy said. "TransUnion's auto insurance shopping data help insurers understand how their company is faring among insurance shoppers. Among other things, our data can tell insurance companies if their customers are shopping more than the general market, which customers are quoting most often and when they are likely to shop."
Other findings of TransUnion's Auto Insurance Shopping Index include:
- Shoppers in previous years are much more likely to shop in the current period (350% and 300% higher shopping rates one and two years after their original shopping year, respectively).
- Higher risk auto insurance customers -- those with lower credit-based insurance scores --shop most frequently. Consumers with the highest insurance scores are less likely than the general population to shop for new auto insurance.
- On average, auto insurance shoppers solicit two quotes (2.04); nearly half (45%) of auto insurance shoppers solicit only one quote.
- Spring months are the most active for auto insurance shopping, while December is the least active month.
About the TransUnion Auto Insurance Shopping Index
The TransUnion Auto Insurance Shopping Index is derived from TransUnion's extensive database of credit data, which includes information on more than 430 million auto insurance shopping transactions from 2009 to 2013. The Index focuses on the credit population, highlighting TransUnion's unique data. It also explores for a subset of the full data shopping rates for insurance policy holders. The Index excludes data from auto insurance customers in California and Massachusetts, where credit-based insurance scoring information is not used for auto insurance rating or underwriting. For more information on the TransUnion Auto Insurance Shopping Index, please visit: http://transunioninsights.com/autoshopping.
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion reaches businesses and consumers in 33 countries around the world on five continents. www.transunion.com/business