The parallel research referred to in my previous blog is the 2013 Accenture Global Consumer Pulse Research (GCPR), the latest iteration of nearly a decade of surveying consumers across multiple industries. This year, one of those sectors was P&C insurance.

The GCPR shows that the tendency to switch providers is growing across all sectors. Even more eye-catching, the researchers used their research data to quantify just how much business was in play for the coming year: and their total was a jaw-dropping $5.9 trillion.

Unfortunately, this year’s GCPR research did not cover the life industry, something we hope to rectify next year. Meanwhile, though, having the Customer-Driven Innovation research to hand, which did cover both sectors, we were able to apply a similar methodology to come up with a quantification of the total insurance premiums that are in danger of being switched from one provider to another.

After a great deal of discussion with our team at Accenture Research—I won’t bore you with the details—we were able to establish that up to $400 billion-worth of insurance premiums across personal-lines life, property and casualty insurers are at risk of being switched.

Playing to win
Read the report.

As one of my marketing team said, “That’s worth getting out of bed for!”

Of course, a figure like that is a great headline, but it only represents the potential amount of business that might be switched. The main point isn’t the number, but the fact that a large number of insurance customers are ready to change providers.

The size of this switching economy is a wake-up call for all insurers. Customers that switch are a disaster from a number of points of view:

  • They are people who have tasted what you are offering and yet are still tempted by the siren songs of your competitors. What are you not doing right?
  • They represent a marketing and servicing investment that you have already made, and will need to re-spend in order to replace them. It’s always better to keep customers than have to find new ones.
  • Just to drive home the point: existing customers are usually the most profitable because the acquisition costs have already been incurred, and the provider is best placed to build up a solid base of customer information to be used for deepening loyalty and cross- and up-selling.

I’ll continue this series of blogs with a look at some of the reasons that insurance customers are so ready to switch.

Download the Customer-Driven Innovation survey report.

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