TransUnion: Nearly half of consumers buy insurance via digital channels

According to TransUnion's 2026 Property and Casualty Annual Insurance Outlook, auto and property insurers will need to optimize customer retention to stay competitive in 2026. With customer retention rates dropping in this past year, TransUnion's report highlights the key areas in which customers were more likely to stay with their current auto carrier. Insurers that saw these results have proactive outreach about premium discounts, contact customers prior to renewal regarding any rate increase and have a well-known brand.

"The landscape in 2026 will continue to be increasingly competitive, especially for auto policy growth," said Patrick Foy, senior director of strategic planning for TransUnion's Insurance business, in the press release. "Using targeted marketing to speak to consumers about what they value most will create a significant advantage."

The research shows that generational differences also play a role in the right approach. Gen Z and Millennials are more receptive to email communication and brand strength, for example, while Gen X individuals and Baby Boomers prefer communication via telephone or in-person interactions. Telephone is preferred for all generations when it comes to claims, according to the TransUnion analysis, suggesting that AI chatbots and app-based updates should enhance live support, but not completely replace it.

In small business insurance, customers largely prefer and expect the same digital experiences they have with their personal auto and property policies – the survey found that 91% prefer streamlined online customer experiences, though just over a third say they actually receive them. TransUnion also found that more than one in three small business owners reported a cyber-related incident within the past year, but more than half of those surveyed have not purchased cyber insurance coverage in the same time-frame.

"Commercial insurers have a big opportunity to differentiate themselves through great digital experiences that are on par with what customers have come to expect on the personal lines side of the business," said Scott Learn, advisor for commercial insurance strategic planning at TransUnion, in the press release. "Beyond that, adding value through cyber insurance coverage will set insurers apart as partners and trusted advisors helping to protect small businesses."

TransUnion expects to see digital channels continue to gain share with 47% of policyholders now purchasing coverage through digital channels, versus 35% through agents. According to their research, just 32% of customers purchased through digital channels five years ago.