Returning to the office and commuting could drive insurance buying activity in 2023, TransUnion said. (iStock)
Hurricane Ian impacted auto and home insurance activity in the third quarter of 2022, according to a recent TransUnion report. As a result of the storm, overall shopping in these markets fell 2% from the previous quarter.
However, insurance activity has been boosted by more consumers buying new cars. Citing information from JD Power, TransUnion said he saw an 11% increase in car sales in October compared to the same period last year.
Inflation and rising insurance premiums have pushed consumers to buy cheaper insurers, the report said.
“The good news this quarter is that vehicle inventories have shown signs of easing to better meet consumer demand,” said Michelle Jackson, senior director of personal property and casualty insurance for TransUnion’s insurance business. “Additionally, demand itself is likely to increase as more employees commute to the office, all of which should have a knock-on effect on car sales and insurance purchases.”
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Bundles Drive Home Insurance Purchases
According to TransUnion, homeowners’ insurance purchases were 1% below activity in the second quarter and down 7% from last year.
Much of the activity is due to homebuyers moving to new states. States with stronger economies and lower prices, such as Texas, Florida and North Carolina, saw the largest influx of homebuyers.
Consumers seeking lower auto insurance premiums have also boosted home insurance purchases, led by those looking to buy policies in bulk, according to a TransUnion report.
Bundling homeowners and auto insurance is one way consumers can maximize their savings through discounts in a high-cost environment. To take advantage of insurance bundles, policyholders must have multiple types of policies from the same insurance company.
“The drive to find cheaper car fares is also impacting the property and casualty insurance industry as more consumers bundle up policies,” Transunion said. “People trying to find lower auto insurance premiums will want to maximize their savings by also changing property and casualty insurance companies.”
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Here’s what will drive insurance purchases in 2023
Insurance buying trends in 2023 may be impacted by lingering economic concerns. Fears of inflation, rising costs and a recession will shape how consumers spend their money, and “the insurance industry will inevitably be affected,” Transunion said.
According to TransUnion, here are two key trends that could impact insurance purchases in 2023:
return to office work
More people returning to the office means more commuting. According to TransUnion, this is expected to affect car sales and insurance purchases.
“Office occupancy hit a pandemic high in September, with 10 regions in the country’s major cities averaging 47.5% of work compared to pre-pandemic levels, according to data tracked by security firm Kastle Systems. are commuting to the office,” said TransUnion.
However, the high cost of purchasing a car can curb shopping activity. Vehicle sales are expected to remain flat until 2023.
Homebuying activity may pick up
High mortgage rates and home prices have pushed buyers to the sidelines in 2022, according to TransUnion, but consumers may return to the market when prices start to fall.
“Consumers remain optimistic, with 28% of respondents who planned to apply for credit say they would consider a new mortgage,” said TransUnion. “Young consumers are also satisfied with their future economic situation. His two-thirds of his Gen Z and millennial respondents to his latest TransUnion Consumer Pulse survey We are optimistic about our finances.”
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