Auto insurers increase reliance on service, agents as sales stagnate
Source: Asia Insurance Review | Jun 2017
With average premiums increasing by a modest 2-3% annually, auto insurance companies have grown increasingly reliant on great customer service, personalised advice and strong agents to win over their customers, according to global market research firm J.D. Power’s 2017 US Insurance Shopping Study.
Despite stagnant pricing, price remains a driver in every stage of the acquisition process, the study found. For example, the influence of price on a shopper’s decision to consider a brand has increased five percentage points in each of the past two years.
The study also revealed that as auto insurers struggle to compete on price, they are being forced to differentiate based on factors such as brand reputation, agent recommendations, products and services to drive new business sales. A