What insurers should know about renters today

As home prices continue to rise at a record-setting pace in the U.S., many individuals who would have been able to enter homeownership in previous years are being priced out. This is creating a new generation of consumers opting to rent what they cannot buy. The increased number of renters and the lengthening duration of rental periods present insurers with an opportunity to serve this population in a time they need it most.

Despite an influx of potential rental insurance customers, carriers must innovate to cut through the noise and connect with their best prospects on a personal level to ultimately turn them into a client. With so much competition, simply reaching out at the right time may not be enough. Insurers need to understand these consumers on a deeper level.

However, without the right insight into the hearts and minds of current and future customers, insurers are often left wondering where to start.

The modern renter
In the past, if you were to picture the average renter, you may have thought of younger, single individuals perhaps finishing college or starting their careers, but extraordinary circumstances have created a unique generation of renters with distinct characteristics.

According to AnalyticsIQ data, the average age of those most likely to purchase renter’s insurance is 53 years old. They are an educated audience that is over 133% more likely to have a graduate degree than the average population, resulting in a 52% higher likelihood of being employed in white-collar positions. Thanks to their education and employment status, these individuals enjoy above-average affluence – specifically, their annual household income is 16% greater than average allowing them to spend 37% more on discretionary items per year – making them a valuable target.

In addition to their life stage and level of affluence, today’s renter’s insurance shoppers are a truly modern audience. AnalyticsIQ data shows those highly likely to purchase renters insurance are consumers of the digital age both in terms of their progressive views and shopping preferences. These consumers are early adopters of technology with a clear preference for digital convenience as they are nearly 20% more likely to use digital fintech platforms or apps and often opt to use online food and grocery delivery services. They also welcome a variety of experiences and are over 40% more likely to be open to conversations around diversity and inclusion.

As more affluent consumers opt for renting due to rising home prices and competition amongst buyers, insurers have the opportunity to capture valuable customers. To meet the expectations of the modern renter, carriers must first adapt and evolve, from the way they communicate with prospects to the coverage-acquisition experience, by gaining a complete view of their customers and prospects with predictive data that goes beyond the insights provided by their first-party data.

Predictive data
To answer the call of the simplified digital experience that consumers expect today, insurers must have comprehensive, individual-level data and the ability to extract actionable observations. Consumer expectations have continued to shift further towards seamless, digital experiences – especially over the last couple of years.

Customers today expect a streamlined experience that allows them to get an immediate, bindable quote personalized to their life. Individuals that are shopping for renter’s insurance want coverage based on their situation sooner than later, so insurers must have the technologies and processes – along with data to back them up – in place to make it as easy as possible for a prospect to become a customer.

By boosting what they know about applicants or specific audience segments like renters, insurers can personalize recommendations and expedite the underwriting process while not giving up insights into liability. Having the right data that provides insight into who individuals are, what they do, and why they do it is a critical first step in meeting fast-evolving expectations in a unique market.