The results of the 2022 U.S. Home Insurance Study reveal that price is less likely to influence home insurer selection than rent or auto.
Homeowners customers have more insurance needs than renters and monoline auto customers, which influence reasons for insurer selection. They are more likely than auto customers to select their policy due to service/quality, product, or recommendation influences.
Note: Price = good rates and good discounts; Product = bundling and good coverage/variety of products available, Recommendation = member of an organization, family/friend/agent recommendation, Reputation = good reputation, Service/Quality = good service experience and convenience/ease of doing business.
Homeowners bundlers, however, are significantly more likely than non-bundlers to have their purchase decision be influenced, at least in part, by price (56% vs. 48%).
Why this is a trend to watch: Carriers looking to build loyalty and bundling opportunities need to offer the complete package – relying solely on price or service or reputation will open the door for carriers focused on the full experience to increase market share.
So what are customers looking for, how can carriers meet all of their needs, and how does this trend impact new industry entrants like Lemonade?
Subscribers will find out when the 2022 U.S. Home Insurance Study results go live on September 13. If you’re not yet a subscriber, contact us today for details >