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The science behind insurance shopping

Understanding the needs of different customers and why they are more inclined to shop can help carriers better target ad spends and messaging.

By David Drotos | January 09, 2020 at 12:00 AM
Insurance shopping. Younger generations, millennials and Gen Z, are the primary groups driving the shopping activity. (Photo: Shutterstock)

Most people don’t typically associate the word “science” with shopping for auto insurance; however, there are many factors taken into consideration when trying to determine who is looking for insurance each year. In TransUnion’s most recent Auto Insurance Shopping Index, 21.7% of consumers shopped for insurance in 2018, up from 20% in the previous year.

The primary groups driving the shopping activity were the younger generations (millennials and Gen Z), who accounted for 39% of the total shoppers, and the subprime credit market which shopped nearly twice as much as prime or above credit consumers. Not surprisingly, insurance companies also spent a record amount advertising to consumers in 2018, rising 13.2% (Auto Insurance Report. Vol. 26#31/) over the prior year to total a staggering $7.49B.

 

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