In today’s competitive market, many consumers view life insurance as a luxury. However, auto and home insurance is typically seen as essential.
What are consumers looking for in auto and home insurance? Price and quality rule the day.
What drives purchases of auto and home insurance?
However, Accenture research shows that insurers have a few challenges to overcome. Consumers see life insurance products as either too complex, or as a luxury product. And while property and casualty insurance doesn’t have to overcome those perceptions, they are seen as commodities.
There are some fascinating numbers in Figure 3. Consider that 74 percent of respondents say that price has become the most important factor in selecting an insurance provider. That’s more than the 69 percent quote cite quality of coverage, and 60 percent who cite ease of contact as the most important factor.
More important, carriers should take note that consumers ranked an existing relationship as the least important factor when making a purchase. It’s a compelling reason to develop a strong customer segmentation strategy and to take a close look at channel distribution.
For more information, download Attracting and Retaining Customers for Life.