Monday, September 30, 2013
Price is a key driver of satisfaction among auto insurance buyers, according to the J.D. Power 2014 U.S. Insurance Shopping Study â€“ Wave 1.
The study examines insurance shopping and purchase behaviors and overall satisfaction among customers who recently purchased insurance across three factors (in order of importance): price, distribution channel, and policy offerings. Retention and shopping rates reflect Q2 2013 results.
J.D. Power reports that rate increases are driving more auto insurance customers to obtain competitive price quotes, while satisfaction with the purchase experience is trending downward among new buyers due to lower satisfaction with price.
Key findings of the study include:
— Price satisfaction declines to 808 (on a 1,000-point scale) in 2014, from 821 in 2013.
— Auto customer retention averages 97 percent, with 3 percent of auto insurance customers switching insurers, fueled by a shopping rate of 8 percent.
— More than 20 percent of new buyers purchased auto insurance online. Therefore, companies that lack a viable quote website are not well-positioned to acquire or sell to one in five customers.
— The average annual savings when switching to a new insurer is on par with 2013 ($387 vs. $386, respectively).
In a press release, Jeremy Bowler, senior director of the global insurance practice at J.D. Power, says:
As rate increases continue to drive customers to shop around for the best price, insurers need to provide a seamless shopping experience, including competitive websites with quote compatibilities and a satisfying on-boarding experience to acquire new customers.
The 2014 U.S. Insurance Shopping Study â€“ Wave 1, which for the first time is being conducted on a quarterly basis, is based on responses from more than 5,500 auto insurance shoppers.
Check out I.I.I. facts and statistics on auto insurance.