ATLANTA — LexisNexis® Risk Solutions, a leading provider of data, analytics and technology for the insurance industry, released the findings of its latest U.S. consumer auto insurance shopping study, providing key insights to help insurers improve their engagement strategies in order to help increase policyholder retention. The study reveals good news for insurers – policyholders do in fact want to hear from their auto insurer, more than they are currently today, but it has to be on their own terms. And, when insurer communication is lacking, consumers can be easily tempted to shop with another carrier.
LexisNexis Risk Solutions conducted the survey of more than 2,000 U.S. auto insurance policyholders earlier this year to help insurance carriers improve their customer acquisition and retention strategies. Participants had researched or actively shopped for auto insurance within the year. The findings reveal that the majority of consumers (74%) say they want to hear from their insurance carrier at renewal in addition to the renewal notice. In addition, more than half (57%) are open to outreach anytime during the policy term. Despite consumers’ preferred desire for regular communication, only 46% of respondents said they were contacted by their carrier at any point during their policy term, outside of the regular renewal notice.
“With easy-to-use websites, mobile apps and always-on call centers, it’s easier than ever to shop for insurance policies, and consumers are actively taking advantage―both on and off policy cycle,” said Ian Griffin, director, product management, LexisNexis Risk Solutions. “It’s encouraging to know that customers are willing to listen, but effective outreach is a balancing act, and you need to make sure you have the right listening and communication strategies in place to avoid attrition, and ideally build customer loyalty.”The Right Time with the Right Message
Major life events are also critical in consumers’ shopping and decision making, and this information is crucial to carriers. In a 2019 LexisNexis study, of the 60% of respondents that had recently experienced a major life event, half claimed that the event affected their decision to shop their auto insurance. Knowledge of consumer life changes gives carriers significant opportunities to expand coverage with current policyholders and further establishes the carrier as a trusted advisor.Prove You Know Your Customer
When it comes to cadence, nearly half (49%) of policyholders feel it’s appropriate for their carrier to contact them within two to five days of them receiving a competitor’s quote, but the majority (68%) don’t want to be pestered and feel that one contact post-quote is enough. However, carriers who are too quiet and don’t proactively reach out to their customers are at a disadvantage as nearly half (47%) of policyholders who switched to a new carrier said their existing carrier’s failure to reach out influenced their decision to switch.Use Easy Shopping to Your Advantage
“Understanding when and how policyholders are shopping can lead to a huge competitive advantage,” said Griffin. “For insurers looking to pay closer attention to their customers, LexisNexis® Active Insights can help to notify when a policyholder is shopping, which then enables the carrier to proactively engage them at the right time and consequently better retain their policyholders.”Consumers want to be Valued: a Lesson for Carriers
Carriers who master the cadence and messaging that consumers are looking for are the ones best positioned for long-term success. So, insurers, acknowledge that your policyholders’ voices matter, and understand their communications preferences so you can tailor your outreach to meet their expectations.
To read the full LexisNexis Risk Solutions U.S. Consumer Report titled, “The Outreach Blueprint: How consumers want to be engaged by their carrier,” click here.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers across industries. For more information, please visit www.risk.lexisnexis.com and www.relx.com.