As more baby boomers retire, many are deciding to downsize their living quarters and are turning to the rental market to do so, with J.D. Power reporting adults age 55 and older accounted for around two-thirds of all rental housing growth from 2004-2019. The age group accounts for approximately 30% of the current rental market in the U.S.

This migration from homeownership presents a customer retention risk for personal line insurers, according to Robert M. Lajdziak, senior consultant of insurance intelligence at J.D. Power.

"So far, most insurers are missing that mark. Consider the stats: 44% of combined boomers and pre-boomers who are renters today had homeowners insurance in the past, but only 52% of them now have their renters policy with the same carrier," Lajdziak said in a release. "Recognizing that annual retention for homeowners is 91.7%, there is a huge opportunity out there for insurers that get the life stage transition formula right, but the scale of this generational movement will likely drive a great deal of switching activity in the future."