The latest J.D. Power 2018 U.S. Insurance Shopping Study found that record-low amounts of new insurance shoppers combined with price competition among insurers and the continued innovation of insurtech disruptors has forced many auto insurers into aggressive customer courtship. The crux of this courtship centers around insurers differentiating themselves from their competition, usually through new digital experiences.
Tom Super, director of the Property and Casualty Insurance Practice at J.D. Power spoke with the Insurance Journal about this report, saying that “We’re entering an era of consumer-centric insurance that will likely be marked by a surge in new digital offerings and serious efforts by insurers to improve the auto insurance shopping experience…Auto insurers looking to differentiate and win new customers are making big bets with digital—such as in personalization—that meet customers’ growing expectations for improved interactions.”.
According to this report, having a consistent omnichannel experience is crucial for retaining customers. 45% of auto-insurance shoppers use multiple channels when purchasing a new policy. This is why it’s so important for insurers to focus on digital development that supports the rest of their business experience, not completely replacing them. Customers want options, and utilizing digital experiences is one of the best ways to give them more.
The U.S. Insurance Shopping Study is one of the best resources for analyzing the current state of the insurance market. The study measures car insurance purchase behaviour and purchase experience satisfaction among customers who recently purchased insurance. Satisfaction is measured by price, distribution channel and policy offerings. The study is based on responses from approximately 15,000 shoppers and includes more than 50,000 customer evaluations of insurers.