Homeowners have home insurance
Gen Z consumers, who are increasingly coming of age, have seen the biggest increases in migration so far in 2022. Many in this group have also likely seen their launch into independence delayed by the pandemic, which may help explain their current peak in migration. Generally, consumers continue to move to lower-cost states with booming economies like Texas, Florida and North Carolina.
However, these trends were mostly evident to homeowners. Tenant migration has been suppressed in the past three quarters as rising prices have kept many tenants stranded, especially those living in major cities that may have instituted a rent freeze during the pandemic. The prospect of leaving such a situation would likely mean higher rents everywhere else.
There is a possible silver lining in the fact that in August 2022 rental prices fell for the first time in two years. Nonetheless, demand is expected to remain high as rising mortgage rates and high housing costs prevent a significant number of people from buying homes.
Taken together, these trends underscore the importance of effective consumer engagement and acquisition, which will require operators to modernize their strategies across various channels.
“The best advice we can give insurers is to optimize for a streamlined and secure quote process,” Jackson said. “These are becoming increasingly important to all consumers, but they are absolutely issues for the emerging Gen Z cohort.”
About TransUnion’s Insurance Trends and Insights Report
Formerly, the Personal Lines Insurance Purchase Report, this quarterly publication examines trends in the personal lines insurance industry, including shopping, migration, breach, credit-based insurance stability and more. The research for the Trends and Insights report is entirely based on TransUnion’s extensive internal data and analysis. It includes information on insurance purchase transactions from April 2021 through October 2022. However, the report excludes data from insurance customers in California, Hawaii and Massachusetts, where insurance rating information based on credit are not used for rating or underwriting insurance.