In US personal lines insurance, the Internet is important (see Consumers prefer to research insurance online)—but it’s not everything (see Consumers prefer to purchase insurance from an agent). And when it comes to price, it’s not a deal-breaker either.
Accenture’s research leveraged the conjoint analysis methodology to measure the actual importance of a number of factors in the selection of a P&C insurance product. Rather than directly asking survey respondents what they prefer in a P&C insurance product, or what factors they find most important, respondents were put in a realistic situation and asked to make a series of trade offs. Analysis of these trade-offs revealed the relative importance of component attributes, which provides a more realistic view on how respondents made choice between products.
The findings revealed:
- While price is important—38 percent of consumers ranked it the primary motivator when selecting an auto or home insurer—other factors are also considered.
- Twenty-four percent of consumers indicated having a point of contact to set up a policy as an important factor.
- Thirteen percent of consumers ranked advice as the third most important factor when selecting an insurer.
Half of consumers we surveyed see little difference between the offerings of their current insurer and its competitors—reinforcing just how important it is for an insurer to have a solid value proposition.
Next week, I’ll look at how consumers rank the value of insurers’ advice.
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