Shopping for personal property insurance surged during the past year, a trend that has continued into 2021, according to TransUnion, which noted that for the week of March 28, 2021, property insurance shopping increased 24.6% compared with the year prior.
Although lockdown measures that went into place during March 2020 influenced the results some, TransUnion noted the jump in March was not the only, or largest, year-on-year gain seen during 2021. During the week of January 3, 2021, the market saw a 26% increase.
“Based on our latest data, we expect that positive year-over-year trends will continue for personal lines insurance shopping as the economy continues to emerge from the pandemic,” Mark McElroy, executive vice president and head of TransUnion’s insurance business, said in a release. “Price continues to be the main driver of auto insurance shoppers. For property insurance shoppers, however, better coverage is the main driver, perhaps owing to the fact they are in a better financial position at this point in the recovery.”
Driving some of these gains are low-interest rates, more work-from-home arrangements, and “a race for space,” all of which spurred on a red housing market as well, according to McElroy.
Additionally, property insurance saw a sharper year-on-year increased during the pre-election period, which was presumably driven by uncertainty around post-election interest rates. Freddie Mac and Fanny Mae also announced caps on second mortgages around the same time, TransUnion reported.
The year-over-year positive trends in personal property insurance shopping are anticipated to continue as the economy continues to improve and mortgage interest rates remain stable.