Auto Insurance Shopping Continued to Rise Even as Rates Stabilized in Q2 2024
TransUnion's latest Insurance Personal Lines Trends and Perspectives Report reveals auto insurance shopping volume reached a new record in Q2 2024, up 7% YoY. Despite this trend, the Consumer Price Index for Motor Vehicle Insurance saw a 0.2% decrease between April and May 2024, potentially signaling rate adequacy for insurers.
The report highlights the importance of leveraging court records alongside Motor Vehicle Records (MVR) for assessing driving history. TransUnion estimates that declining traffic violations since 2020 have cost the auto insurance industry about $200 million annually in lost premium capture. The study also found that 51% of accidents in 2022 involved drivers with prior violations, up from 42% in 2019, emphasizing the increased predictive power of violation history for insurance losses.
Il rapporto più recente di TransUnion sulle tendenze e le prospettive delle assicurazioni personali rivela che il volume di acquisto dell'assicurazione auto ha raggiunto un nuovo record nel secondo trimestre del 2024, con un aumento del 7% rispetto all'anno precedente. Nonostante questa tendenza, l'Indice dei Prezzi al Consumo per l'assicurazione auto ha registrato un calo dello 0,2% tra aprile e maggio 2024, segnando potenzialmente un'adeguatezza delle tariffe per gli assicuratori.
Il rapporto evidenzia l'importanza di sfruttare i registri giudiziari insieme ai Registri dei Veicoli a Motore (MVR) per valutare la storia di guida. TransUnion stima che il calo delle violazioni del traffico dal 2020 ha causato al settore delle assicurazioni auto circa 200 milioni di dollari all'anno in premi persi. Lo studio ha inoltre rilevato che il 51% degli incidenti nel 2022 ha coinvolto conducenti con violazioni precedenti, in aumento rispetto al 42% del 2019, evidenziando il maggior potere predittivo della storia delle violazioni per le perdite assicurative.
El último informe de TransUnion sobre tendencias y perspectivas en líneas de seguros personales revela que el volumen de compras de seguros de auto alcanzó un nuevo récord en el segundo trimestre de 2024, lo que representa un aumento del 7% interanual. A pesar de esta tendencia, el Índice de Precios al Consumidor para el Seguro de Vehículos de Motor experimentó una disminución del 0.2% entre abril y mayo de 2024, lo que podría señalar una adecuación de tarifas para los aseguradores.
El informe destaca la importancia de utilizar registros judiciales junto con los Registros de Vehículos de Motor (MVR) para evaluar la historia de conducción. TransUnion estima que la disminución de las violaciones de tráfico desde 2020 ha costado a la industria de seguros de auto aproximadamente 200 millones de dólares al año en captura de primas perdidas. El estudio también encontró que el 51% de los accidentes en 2022 involucraron a conductores con violaciones previas, un aumento respecto al 42% en 2019, enfatizando el mayor poder predictivo de la historia de violaciones para las pérdidas de seguros.
TransUnion의 최신 개인보험 동향 및 전망 보고서에 따르면, 자동차 보험 쇼핑량이 2024년 2분기에 새로운 기록에 도달했습니다. 이는 전년 대비 7% 증가한 수치입니다. 이러한 추세에도 불구하고, 자동차 보험에 대한 소비자 물가 지수는 2024년 4월과 5월 사이에 0.2% 감소를 보였으며, 이는 보험사들에게 요금 적정성을 나타낼 수 있습니다.
보고서는 운전 이력을 평가하기 위해 자동차 기록(MVR) 외에도 법원 기록을 활용하는 것의 중요성을 강조합니다. TransUnion은 2020년 이후 교통 위반이 감소하여 자동차 보험 산업이 매년 약 2억 달러의 프리미엄 손실을 겪었다고 추정합니다. 또한 연구에서는 2022년 사고의 51%가 이전에 위반 기록이 있는 운전자가 관련되었다고 밝혀졌으며, 이는 2019년의 42%에서 증가한 수치로, 보험 손실에 대한 위반 기록의 예측력을 강조합니다.
Le dernier rapport de TransUnion sur les tendances et perspectives en assurance personnelle révèle que le volume de souscriptions d'assurance automobile a atteint un nouveau record au deuxième trimestre 2024, en hausse de 7 % par rapport à l'année précédente. Malgré cette tendance, l'indice des prix à la consommation pour l'assurance automobile a enregistré une baisse de 0,2% entre avril et mai 2024, ce qui pourrait signaler une adéquation des tarifs pour les assureurs.
Le rapport souligne l'importance d'exploiter les dossiers judiciaires en parallèle avec les dossiers de véhicules motorisés (MVR) pour évaluer l'historique de conduite. TransUnion estime que la diminution des infractions routières depuis 2020 a coûté à l'industrie de l'assurance automobile environ 200 millions de dollars par an en primes perdues. L'étude a également révélé que 51 % des accidents en 2022 impliquaient des conducteurs ayant des infractions antérieures, contre 42 % en 2019, soulignant ainsi le pouvoir prédictif accru de l'historique des infractions pour les pertes d'assurance.
Der neueste Bericht von TransUnion über Trends und Perspektiven im Bereich der persönlichen Versicherung zeigt, dass das Volumen bei der Suche nach Kfz-Versicherungen im 2. Quartal 2024 einen neuen Rekord erreicht hat, mit einem Anstieg von 7% im Vergleich zum Vorjahr. Trotz dieses Trends verzeichnete der Verbraucherpreisindex für Kfz-Versicherungen einen Rückgang um 0,2% zwischen April und Mai 2024, was möglicherweise auf eine Angemessenheit der Prämien für Versicherer hinweist.
Der Bericht hebt die Bedeutung der Nutzung von Gerichtsakten neben den Fahrzeugregisterdaten (MVR) zur Bewertung der Fahrhistorie hervor. TransUnion schätzt, dass der Rückgang der Verkehrsverstöße seit 2020 der Kfz-Versicherungsbranche jährlich etwa 200 Millionen Dollar an verlorenen Prämien gekostet hat. Die Studie ergab auch, dass 51% der Unfälle im Jahr 2022 Fahrer mit vorherigen Verstößen betrafen, ein Anstieg von 42% im Jahr 2019, was die erhöhte Vorhersagekraft der Verstoßhistorie für Versicherungsverluste unterstreicht.
- Auto insurance shopping volume increased by 7% YoY in Q2 2024
- Consumer Price Index for Motor Vehicle Insurance decreased by 0.2% between April and May 2024, indicating potential rate adequacy
- Court records offer over four times the number of ratable out-of-service violations compared to state MVRs
- Court record data is more cost-effective than carrier processes relying solely on MVR data
- Declining traffic violations since 2020 have cost the auto insurance industry an estimated $200 million per year in lost premium capture
- 17 out of 27 states with automated traffic enforcement prohibit the use of these violations in insurance rating and underwriting
- Only 24 out of 48 states effectively execute inter-state violation sharing programs
Insights
The rise in auto insurance shopping volume, despite stabilizing rates, indicates a shift in consumer behavior. This trend suggests that consumers are becoming more price-sensitive and proactive in seeking better deals, even as the market shows signs of stabilization. The
The slight
The estimated
The disparity in violation reporting between states with and without automated enforcement (
The varied state regulations regarding automated traffic enforcement create a complex legal landscape for insurers. With 17 out of 27 states prohibiting the use of automated violations in insurance rating, insurers face significant challenges in accurately assessing driver risk. This regulatory patchwork may lead to disparities in risk assessment and pricing across state lines, potentially raising fairness concerns.
The ineffective execution of inter-state violation sharing programs by half of the participating states poses a serious issue for risk assessment. This gap in information sharing could lead to underpricing of high-risk drivers who move across state lines, potentially increasing losses for insurers and raising premiums for all policyholders. It also highlights the need for more standardized and efficient information sharing practices in the insurance industry.
TransUnion report finds court record data essential to helping insurers capture driving violation histories that enable improved risk segmentation and pricing accuracy
CHICAGO, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Auto insurance shopping volume set a new record for the second consecutive quarter, according to new research from TransUnion (NYSE: TRU). The number of U.S. consumers shopping for auto insurance was up
This trend has been driven in recent years by increasing insurance premiums that motivated consumers to shop for lower rates. However, for the first time since December 2021, the month-to-month Consumer Price Index for Motor Vehicle Insurance decreased—a
The slight shift could signal that insurers are approaching rate adequacy and prospective loss trends could be moderating. These insights and more are part of TransUnion’s latest quarterly Insurance Personal Lines Trends and Perspectives Report.
“It is very encouraging to see indicators that carriers are returning to rate adequacy, and ultimately profitability,” said Stothard Deal, vice president of strategic planning for TransUnion’s insurance business. “TransUnion’s research has uncovered ways for insurers to accelerate the move to profitability and prepare to resume marketing activity in a more-efficient manner.”
Driving record and violation insights
One means for carriers to shorten the path to profitability is by leveraging court records in addition to state Motor Vehicle Records (MVR) to assess driving history. Beginning with the pandemic, states across the U.S. began issuing fewer traffic violations, which insurers have used to price and underwrite risks.
Due to a lower number of violations issued, auto insurers have been capturing fewer dollars in surcharge premiums, thereby contributing to negative premium trends. TransUnion estimates the declining volume of traffic violations starting in 2020 has cost the auto insurance industry an estimated
In addition, more states have adopted automated traffic enforcement, though reporting varies significantly. For example, 17 of the 27 states that currently use automated traffic enforcement prohibit the use of these violations in insurance rating and underwriting. As a result, from 2019 to 2023, states with automated enforcement saw a
The issue is further complicated by inefficient sharing of violation information between states. While 48 states have inter-state violation sharing programs, only 24 execute them effectively. This often means drivers with dangerous prior violations can relocate to a new state, potentially leaving their histories behind.
Violations increasingly predict loss
In 2019,
The confluence of these factors—fewer violations, unusable automated traffic citations, and a lack of inter-state violation history sharing—means that insurers are significantly hindered from accurately pricing risk. Compounding this issue is that most insurers rely on MVRs to access driving histories.
While MVRs are subject to some of these same limitations, TransUnion has found court records offer a clearer view of violation activity, returning over four times the number of ratable out-of-service (OOS) violations compared to state MVRs. Additionally, court record data is more cost effective than carrier processes that depend solely on MVR data.
Click here to read the latest Insurance Personal Lines Trends and Perspectives Report.
About TransUnion’s Insurance Personal Lines Trends and Perspectives Report
This quarterly publication examines trends in the personal lines insurance industry, including shopping, migration, violation, credit-based insurance stability and more. The Trends and Perspectives Report research is based almost entirely on TransUnion’s extensive internal data and analyses. It includes information on insurance shopping transactions from January 2023 to June 2024. However, the report excludes shopping data from insurance customers in California, Hawaii (auto), Massachusetts (auto), and Maryland (property), where credit-based insurance scoring information is not used for insurance rating or underwriting.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business
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FAQ
What was the increase in auto insurance shopping volume in Q2 2024 for TransUnion (TRU)?
How much did the Consumer Price Index for Motor Vehicle Insurance change between April and May 2024?
What is the estimated annual cost to the auto insurance industry due to declining traffic violations since 2020?
How many times more ratable out-of-service violations do court records return compared to state MVRs, according to TransUnion (TRU)?
