One-third of consumers went from being fully insured to under- or uninsured during the COVID-19 pandemic, according to TransUnion. The issue was among the featured topics at the recent TransUnion 2021 Virtual Insurance Summit.
“It’s clear that COVID-19 has complicated the consumer experience as well as the affordability of insurance policies,” said Mark McElroy, executive vice president and head of TransUnion’s insurance business. “The research presented at our summit stressed the importance for insurers to lean into comprehensive data that provides a holistic view of the consumer. Doing so helps insurers better understand consumer needs and accurately price, quote and deliver personalized policies and solutions for their customers.”
TransUnion examined several trends during the summit, including how the pandemic impacted insurance customers.
In response to the economic impact of COVID-19, the government provided trillions of dollars in assistance, including accommodation programs allowing borrowers to delay payments on certain loans.
While more accounts are now exiting accommodation than entering it, those who remain in accommodation are likely to be struggling, according to TransUnion. This group also likely needs the most assistance with their insurance payments.
A TransUnion study conducted in March found that 70% of respondents said it was important to have full auto insurance, but 34% said they went from being fully insured to uninsured or under-insured during the pandemic. Eighteen per cent (18%) said they missed one or more payments, and 27% said they canceled a policy. Only 20% adjusted payment plans, while 32% increased deductibles to lower premiums.
“The results clearly point to opportunities for insurers to better support their policyholders,” McElroy said. “Insurers who engage their customers, especially those in a difficult predicament, can forge long-lasting relationships once the economy recovers.”