A study of consumers’ intent to switch products or services found that one category stood out: auto insurance. Based on CivicScience consumer surveys, record levels of auto insurance policyholders intend to switch providers.
As of February, 33% of auto insurance holders reported that they are likely to switch to a different provider in the next three months. That's a seven-point increase year-over-year and the highest year-to-date switching intent since the first quarter of 2018, the data provider said.
It noted that over half of insurance holders ages 18 to 29 reported to be “somewhat” likely to change providers in the next three months, while interest was more subdued in older age groups.
While dissatisfaction is certainly a driver of churn, the report noted that even “safe” segments are at risk, 30% of satisfied policyholders intending to switch within the next three months. Unsurprisingly, affordability is the biggest concern policyholders gave, 66% ranking it the most important factor when choosing a provider.
The most commonly reported primary auto insurance provider was State Farm, but it experienced a year-over-year decline as its competitors made market share gains. Of the consumers who considered switching providers in the past year, Geico was the most commonly cited current primary provider.
CivcScience said auto insurers should focus on targeted digital engagement that addresses what matters most to consumers who are considering switching providers.