Auto and Property Insurers Will Need to Maximize Retention Efforts to Stay Competitive in 2026

Rhea-AI Summary

TransUnion (NYSE: TRU) released its 2026 Trends and Outlook Report on Nov 11, 2025, identifying retention and digital service gaps in auto, property and small commercial insurance.

Key findings: retention fell in 2025; consumers value proactive outreach, clear renewal notices and brand strength; 91% of small businesses prefer streamlined online experiences but only 34% receive them; >1 in 3 businesses reported a cyber incident last year; social-engineering drove about one-third of cyber loss payments in 2024 and the absence of such coverage drove a majority of commercial claim denials in 2023.

Positive

• 91% of business customers prefer streamlined online experiences
• More than 1 in 3 businesses reported a cyber incident last year
• Over 2/3 of firms would switch insurers lacking cyber coverage

Negative

• Customer retention fell in 2025
• Only 34% of businesses receive streamlined online service
• Absence of social-engineering coverage drove a majority of commercial claim denials in 2023

Insights

Industry Strategist

TransUnion flags retention decline and digital/cyber product gaps as actionable opportunities for insurers in 2026.

TransUnion highlights that customer retention fell in 2025 and identifies clear levers insurers can use to slow attrition: proactive outreach before renewal, targeted premium-discount communications, and stronger brand presence. The research shows generational differences in channel preference—younger cohorts prefer email while older cohorts prefer phone or person-to-person—and confirms phone remains the dominant channel for claims, so digital tools should support, not fully replace, live service.

The report exposes commercial-lines openings: 91% of business customers want streamlined online service but only 34% get it, over one-third of firms experienced a cyber incident in the past year, and more than half did not buy cyber coverage recently. These facts signal latent demand for scalable digital quoting/binding and bundled cyber products; carriers that close the delivery gap can capture switching-prone clients who would change carriers if cyber coverage is missing.

Key dependencies and near-term watch items include execution of digital platforms, productization of social-engineering and cyber bundles, and marketing that segments by generation. Monitor adoption metrics and product offers over the next 6–18 months and any disclosure of take‑rates for cyber coverage or customer-retention trends in 2026 earnings or updates; those measures will show whether the theoretical opportunity translates into measurable revenue or retention gains.

TransUnion annual outlook report identifies growth opportunities in commercial lines via digital experiences and cybersecurity offerings

CHICAGO, Nov. 11, 2025 (GLOBE NEWSWIRE) -- The coming year may pose challenges to insurers that are outside their control, such as economic uncertainty and weather catastrophes. However, there are several steps they can take to improve customer retention, which has fallen in 2025, according to TransUnion’s (NYSE: TRU) latest analysis.

The research includes a survey of consumers’ attitudes and plans for managing their property and auto insurance policies over the coming year. These findings and many more insights on moderating rates and profitability are included in TransUnion’s 2026 Trends and Outlook Report.

“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. “Using targeted marketing to speak to consumers about what they value most will create a significant advantage.”

TransUnion’s research supports this notion. Among the top reasons consumers would more likely stay with their current auto insurance provider, included: proactive outreach about premium discounts; contacting customers prior to renewal regarding any rate increases; and having a well-known brand. Gen Z and Millennials were more drawn toward brand strength, while Gen X and Baby Boomers indexed higher in valuing proactive outreach.

The report also found that carriers can boost loyalty by communicating through the right channels. Younger customers remain more receptive to email while Baby Boomers favor the phone or person-to-person interaction. Telephone is still preferred across generations for handling claims—so AI chat and app-based updates should augment, not replace, live support. 

Insurers should also consider proactive outreach to address customers’ curiosity about cost savings.
The top changes consumers anticipate making to their insurance needs within the next 12 months are: 

• Adjusting coverage and/or deductibles to lower premiums 
• Bundling auto with home or renter’s insurance 
• Enrolling in additional premium discount programs 
  

Small business owners demand digital service — and broader coverage

For small businesses, the line between personal and commercial insurance continues to blur, and owners increasingly expect the same digital experiences they have through their personal auto and property policies. The report found that 91% of business customers prefer streamlined online customer experiences — but only 34% say they actually receive them. That's a clear opening for carriers that can deliver digital quoting, binding and service at scale. 

Cyber coverage is another area of both exposure and opportunity. In TransUnion’s survey, more than one in three business owners reported experiencing a cyber-related incident in the past year. Among insurers working with Cyberscout, a TransUnion brand, social engineering accounted for about one-third of cyber loss payments in 2024, and the absence of social-engineering coverage drove a majority of all commercial claim denials in 2023.

Yet over half of surveyed firms had not purchased cyber coverage in the past year, and more than a quarter said it was never offered. More than two-thirds would consider changing insurers if their carrier does not provide it, highlighting both the urgency and the opportunity for executive cyber options that bridge workplace and household exposures.

“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. “Beyond that, adding value through cyber insurance coverage will set insurers apart as partners and trusted advisors helping to protect small businesses.”

Read the full 2026 Trends and Outlook Report here.

Click here to learn more about TransUnion’s marketing solutions that help with identity resolution, audience building and measurement.

About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business

Contact	Dave Blumberg TransUnion
E-mail	david.blumberg@transunion.com
Telephone	312-972-6646

FAQ

What did TransUnion (TRU) report about insurer retention trends on Nov 11, 2025?

TransUnion reported that retention fell in 2025 and insurers must boost proactive outreach to retain customers.

How does TransUnion (TRU) say small businesses view digital service in 2026?

The report found 91% of small businesses prefer streamlined online experiences, but only 34% actually receive them.

What cyber insurance gaps did TransUnion (TRU) identify affecting commercial insurers?

TransUnion found >1 in 3 businesses had a cyber incident last year; social-engineering made up ~one-third of cyber loss payments in 2024 and missing coverage caused most commercial denials in 2023.

What retention tactics does TransUnion (TRU) recommend for auto insurers in 2026?

Recommended tactics include proactive outreach about discounts, contacting customers before renewal about rate changes, and leveraging brand strength.

Will lack of cyber coverage affect commercial customer churn according to TransUnion (TRU)?

Yes — the report says over two-thirds of firms would consider changing insurers if cyber coverage is not provided.