When it comes to buying insurance, it seems that today's consumers do not exhibit the brand loyalty of even a decade ago. Continued investment in ad spend combined with the ability to easily gain an auto quote through carrier websites, mobile apps and comparative rating sites have empowered consumers to shop more quickly and easily than ever before.
And why not? Insurers have continued to raise rates, although to different degrees at different times—leading to a steady growth in the volume of shoppers since 2009. By investing a modest amount of time online or on the phone, consumers can easily compare rates and may often uncover savings potential.
These proprietary LexisNexis Risk Solutions shopping insights are derived from 3.5 billion consumer-shopping transactions since 2009.
What You Need to Know About Consumer Shopping Behavior:
Factors Contributing to Rising Auto Insurance Rates:
Consumers are shopping insurance with greater frequency. Even traditionally stable, high-value consumers are shopping at higher rates. This can provide carriers with an opportunity to diversify their offerings to a larger, more diverse and more active market. However, not all shoppers are created equal, both in terms of potential loss and retention risk, so it is important to accurately segment and target customers to ensure that you are identifying and attracting the ones that are right for you.
If you are focused on profitable growth, you can leverage today's consumer shopping dynamics to identify customers that best fit your risk profile and help execute successful acquisition programs.
Whether it is acquiring with retention in mind or improving your customer loss profile, what you know can help you.
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