Marketing intensifies, retention strategies shift and data takes center stage
Consumers continue to shop for auto and property insurance at elevated levels as we progress through the second half of 2025. Personal insurance carriers, however, are being forced to rethink their strategies for growth and long-term sustainability. Increased marketing investments, shifting consumer expectations and the demand for higher-quality data are reshaping how carriers operate.
Auto insurance marketing ramps up but data quality is key
Auto insurance shopping rose 17.6% year over year in Q2 2025, driven largely by high-risk segments. Activity peaked in March and remained high through early Q2 before easing slightly in May and June.1 While many consumers have already secured policies, others — especially those bundling auto and property insurance — continue searching for better rates.
Carriers responded with a 22.9% year-over-year increase in marketing spend during Q1. That investment spanned multiple channels, with greater emphasis on direct mail and a shift from traditional TV ads to video formats.2 Campaigns increasingly spotlight specialty lines like motorcycle, pet and identity theft coverage to stand out in a highly competitive landscape.
Clean data’s role in effective marketing
In one TransUnion® case study, cleansing just two contact fields (email and phone) for 2.4 million records helped a carrier save $1 million in direct mail costs and generate nearly $5 million in additional revenue.3
Additionally, a TransUnion analysis of targeting strategies showed pairing two selection criteria, such as credit-based insurance score and auto loan activity, can boost return per ad dollar by up to 3.6x4 — demonstrating the value of robust, up-to-date consumer data.
Rethinking retention for a more mobile customer base
Retention is also under pressure, particularly as long-term policyholders are increasingly inclined to comparison shop — driven by years of rate increases and sophisticated advertising from competitors.
According to a recent TransUnion consumer survey, 42% of auto insurance shoppers switched carriers in the past 18 months, and 25% had been with their previous insurers for more than six years. This shift is most pronounced among Gen X and Baby Boomer customers — segments traditionally viewed as stable. Consumers are also now looking for more than just lower premiums: Better coverage and improved customer service were cited as equally important.5
Today’s consumers have their customer experience preferences set by digital-first brands like Amazon and Uber. That means insurer retention efforts must move beyond the traditional renewal call. Carriers need to personalize outreach around key life events — such as moving or vehicle shopping — which create natural opportunities for engagement. Only high-quality data on customers can allow insurers to make those kinds of timely personal connections.
Property lines show divergence across risk segments
Shopping for homeowners and renters insurance remained strong in Q2 2025, up 9.2% year over year.6 Consumers with lower credit-based insurance scores are driving much of the activity, reflecting increased sensitivity to rate changes. Meanwhile, many Gen X and Baby Boomer consumers in higher-valued property segments are seeking broader coverage for growing asset portfolios.
A mounting challenge in the property segment involves unreported home upgrades and renovations. Often funded through HELOCs or refinances, these changes can result in inadequate coverage. In Q2 2025, the number of opened first mortgage refinance, HELOC and HELOAN accounts was 23% higher than the same period the prior year — likely indicating continued investment in home improvements.7 Without updated policy data, carriers risk misaligned coverage and potential claims exposure.
What to watch for the rest of 2025
The economic outlook for the remainder of the year is uncertain: US GDP declined for the first time in three years as consumer spending slowed and inflation stayed elevated. Auto loan payments hit record highs — while insurance and maintenance costs continue to outpace overall inflation. And the housing market remains tight, with mortgage balances set to continue to rise.8
In this environment, personal lines should grow new business, retain valuable customers and maintain underwriting discipline. High-quality data is the foundation that powers all these objectives.
For deeper insights, read the full Q3 2025 Personal Lines Trends and Perspectives report or contact your TransUnion representative.
References
1,6 TransUnion Internal Data
2 “Q1 2025 Insurance Omnichannel Market Trends Overview.” TransUnion. May 2025.
3 Kathleen Denier. "Strengthening Customer Relations While Solidifying Trust." PowerPoint presentation. TransUnion. May 20, 2025
4 “The High-Risk, High-Reward World of Audience Targeting.” TransUnion. January 2025.
5 Q2 2025 through Q3 2025 TransUnion Quarterly Consumer Survey results.
7 “Home Equity Trends Report.” PowerPoint presentation. TransUnion. Q1 2025.
8 TransUnion Q1 2025 Consumer Credit Trends Webinar.
