In the last five years, insurers have been unable to significantly improve customer metrics. According to our research, customer churn is a top issue in property & casualty insurance. In fact, 40 percent of customers are very or somewhat likely to change at least one auto or home insurer in the next 12 months. However, only 10 percent are likely to switch their life insurer. Approximately $400 billion in insurance premiums are in play in the global “switching economy.”
In this day and age, customers use multiple channels to meet their various needs, from in-person meetings to smartphones. What’s more, non-insurers entering the fray are expected to put added pressure on insurers. To survive—and thrive—in this “new normal,” carriers will need to take bold approaches to understand customer needs, and then meet these needs. And while price is by no means the only factor involved in making the decision to switch, it remains a key trigger.
The bottom line: a low price is a switching trigger, but it cannot be offered at the expense of a personalized, consistent, multichannel customer experience.
To learn more:
- Access the data from more than 6,000 insurance customers across 11 countries and tailor it by age group, line of business and geography.