[SPEAKER_01]: Welcome to AMBAST audio.
[SPEAKER_01]: New research from Trans Union reveals key consumer migration trends with major implications for insurers.
[SPEAKER_01]: In twenty twenty four three of the top five U.S.
[SPEAKER_01]: destinations for Movers were in Texas while Gen Z buck the broader trend by heading to cities others were leaving.
[SPEAKER_01]: with shifts in where and how far people move ensures face new challenges in customer acquisition, risk assessment, and beneficiary tracking.
[SPEAKER_01]: I'm John Weber for AM best audio and I'm speaking today to Patrick Floyd, senior director, market strategy, PNC markets for Trans Union, Patrick's a glad you could join us.
[SPEAKER_01]: So happy to be here, John.
[SPEAKER_01]: Thank you.
[SPEAKER_01]: So Patrick, what are the most important implications of these migration trends for insurers, especially those operating in fast growing Texas markets?
[SPEAKER_00]: Right.
[SPEAKER_00]: So I think the most important trends that we're seeing are, first and foremost, the cash fee risk implications within the property markets.
[SPEAKER_00]: So you look at the cities that in the states that have the greatest net outbound migration
[SPEAKER_00]: which is probably not unexpected to be California markets as well as Northeastern U.S.
[SPEAKER_00]: and the inbound migrations primarily focused in Southeast or markets like Florida, Texas North Carolina, South Carolina, Tennessee and you're seeing that these have a much broader risk profile as it comes to hurricanes, severe convective storms,
[SPEAKER_00]: And you're still not entirely out of the woods with things like winter storm and wildfires.
[SPEAKER_00]: So, you know, the risk implications of that are, you know, there's going to be more exposure to more frequent events and not necessarily getting away from some of the more severe events as well.
[SPEAKER_01]: Why don't you ask about Gen Z and first of all, could you define Gen Z for us, Patrick?
[SPEAKER_00]: Gen Z is going to be in our database, their credit active individuals who were born between the years in nineteen ninety seven and two thousand twelve.
[SPEAKER_01]: Okay.
[SPEAKER_01]: So, Gen Z is gravitating toward cities that others are leaving.
[SPEAKER_01]: How should insurers adjust their outreach and product strategies to reflect this generational divergence?
[SPEAKER_00]: Right.
[SPEAKER_00]: So, Gen Z right now are currently primarily runner population, but we all know that they're going to be buying homes five, ten years from now.
[SPEAKER_00]: So it's important for insurers to start building and cultivating those relationships.
[SPEAKER_00]: A lot of these markets where they're moving like New York, Chicago, Washington.
[SPEAKER_00]: These aren't necessarily markets where they're going to be owning vehicles and driving, but they're obviously all going to be runners.
[SPEAKER_00]: They have to live somewhere.
[SPEAKER_00]: So I think it's important to start working on building out that foundational and starting to establish sticky relationships.
[SPEAKER_00]: with these new consumers as they are matriculating through the insurance lifecycle.
[SPEAKER_01]: How can insurers improve their ability to locate life insurance beneficiaries amid rising interstate migration and reduced access to federal death records?
[SPEAKER_00]: Right, I think it's important that you have utilized all assets that are available that, you know, are able to track consumers as they're migrating in the, you know, within databases that are authoritative.
[SPEAKER_00]: around, you know, credit data, they're going to be able to track all the moves, they're going to be able to, you know, transcend, they have one continuous consumer record within a credit database, for example, where you can see where all the different permutations and name and address on an individual, and there's going to be most well-suited to be able to identify, you know, where consumers are popping up, where they're receiving their mail,
[SPEAKER_00]: where they are, you know, listing their next address for having their mail said, for instance, for a credit card statement or utility statement.
[SPEAKER_01]: So Patrick, what steps should auto-inture as take to better assess risk when motor vehicles report failed to capture violations across state lines?
[SPEAKER_00]: Yeah, one of the challenges, John, that we're seeing within the data is that
[SPEAKER_00]: You know, traditional underwriting processes and risk assessment processes normally took into consideration, you know, with with state DMV records, for example, you know, there were already existing reciprocity agreements within states, but
[SPEAKER_00]: We're seeing that roughly half of those states are actually either systemically able to continue carrying out those requirements or they're not doing it right.
[SPEAKER_00]: So instead of forty-eight states having participating in compacts and practice only twenty-four are.
[SPEAKER_00]: You know, it's important to make sure that you have national solutions in place using alternative data in addition to those traditional processes to supplement your ability to find individual violations that are occurring out of state across state lines or
[SPEAKER_00]: You know, are occurring with, again, with prior iterations and name and address.
[SPEAKER_00]: So an individual that is married, they move out of state.
[SPEAKER_00]: You don't want to lose that violation because, you know, the violations are occurring in the states that they previously lived in, but you're pulling the underwriting reports in the state where they're living now.
[SPEAKER_00]: So it's important that you have that alignment.
[SPEAKER_01]: With traffic violations reaching a post pandemic high, how can ensures leverage alternative data sources like court records to improve underwriting accuracy?
[SPEAKER_00]: Yes, so it's important that a ensure contemplate a multifaceted data strategy to ensure that they're actually accurately assessing
[SPEAKER_00]: The risk associated with violation activity for insurers.
[SPEAKER_00]: So for instance, state DNVs are going to contain a lot of information on convictions.
[SPEAKER_00]: And they have compacts between forty eight states typically, but only twenty four states in processor, you know, honoring those compacts, right, whereas
[SPEAKER_00]: Court records, for example, are able to capture all the activities of a company across state lines, but it's maybe not available in every single market.
[SPEAKER_00]: So it's not on one size fits all approach.
[SPEAKER_00]: It's probably worth noting that based on a carrier state specific state footprint,
[SPEAKER_00]: There may be different varying combinations of, you know, the best ways to use those court records to find all the violations, including violations prior that are out of state under different names and address combinations, as well as less than guilty and convictions that, you know, things that haven't happened yet in terms of convictions.
[SPEAKER_00]: in addition to the motor vehicle report, which is going to be have fifty state availability, but may not always have the same data.
[SPEAKER_01]: Patrick, thank you so much for taking the time to speak with us today.
[SPEAKER_01]: This was fascinating.
[SPEAKER_00]: Thank you, John.
[SPEAKER_00]: Always a pleasure.
[SPEAKER_01]: That was Patrick Foy, Senior Director, Market Strategy, PNC, Markets for Trans Union, and I'm John Weber for I am best audio.
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