Study: How customers proceed when changing car insurance

June 9, 2022 – The Internet remains the most used source of information for auto insurance customers who are willing to switch. At the same time, they get more and more active and detailed information. Brokers continue to be strong and successful movers of change with high closing rates. However, the Internet remains the preferred medium for completion. These are the results of a study of today and tomorrow.

In its “Customer Journey to Motor Vehicle Insurance 2022” study, the Today and Tomorrow company examined how customers who are willing to change their auto insurance can be won or retained. The reasons, forms and drivers were determined, as well as the relevant factors of prevention of change.

The analysis is primarily aimed at auto insurers. It’s important for them to “know exactly the customer journey of customers who are generally interested in change and its various seasons,” she says. However, many of the results are also interesting for the intermediary business.

Two customer groups were surveyed

The online survey was conducted in March and, according to the company, was representative. 505 people between 18 and 65 years old were surveyed, divided into two groups.

The first included customers who had changed their car insurance in the last 12 months. It included 267 study participants. The second consisted of consumers who had been actively informed but ultimately did not switch providers. This group contained 238 people.

In addition to current trends, developments were also analyzed in comparison with studies from previous years. In 2019, 500 people were interviewed (225 people without change and 275 people with change) and in 2016, 453 people were interviewed (203 people without change and 250 people with change).

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The main trigger is the desire for a better price

The results: The most important trigger in nearly eight out of ten cases (78 percent) is the prospect of financial savings or price dissatisfaction. Although this is seven percent less than in 2019, this ratio still plays a role.

Other reasons follow far behind. Only eight percent stated, for example, that they had received a tip from the insurance broker. Multiple entries were possible.

Customer Journey to Motor Insurance 2022 (Image: Today and Tomorrow)
Customer Journey to Motor Insurance 2022 (Image: Today and Tomorrow)

In the information phase, the Internet is still far ahead

The Internet remains the most used source of information by a wide margin. An unchanged 85 percent use it. Comparison portals continue to play a central role here, especially Check24.de, the study authors report, albeit with a downward trend.

21 percent (plus five percent) collect information from family and friends. 19 percent (plus five percentage points) consult a bank advisor, insurance agent or broker by phone. 18 percent (minus seven percentage points) seek personal contact with them. In addition, five percent (plus three percentage points) request information from them by email.

Another nine percent (plus five percentage points) get their information from magazines and newspapers. Five percent (plus two percentage points) draw conclusions from television and radio reports.

Those interested in change are increasingly active in their search

Compared to previous years, customers who are willing to switch use more sources of information. The number of touchpoints has increased from an average of 2.1 in 2019 to 2.5 today.

In addition, consumers are increasingly requesting quotes from different insurers. More than one in three are now doing this. This means a significant increase (2022: 36 percent; 2019: 21 percent).

In the decision-making phase, intermediaries are strong drivers of change

The Internet is still the dominant way to close. Some 57 percent of those surveyed said they made their choice through comparison sites or vendor websites. However, after rapid growth until 2015, this trend has stagnated in recent years (2019: 60%).

39 percent are currently signing up for brokers, which is slightly more consumers than in 2019 (36 percent).

The study authors report, however, that consultants continue to be particularly strong and successful drivers of change with high success rates at closing. Especially when the advice is experienced by the client as competent, objective and fair. Insurance agents could have expanded their position in settlements compared to independent brokers.

Current Preferred Providers When Switching Auto Insurers

Among the respondents who changed their car insurance in the last twelve months, Huk24 AG, Huk-Coburg-Allgemeine Versicherung AG, Allianz Versicherungs-AG, ADAC Autoversicherung AG and VHV Allgemeine Versicherung AG are currently the five most popular insurers.

In an individual comparison with Huk24 and Huk-Coburg, Allianz is reported to be in the lead in the sample. The ADAC is the one that has grown the most in recent years.

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The approximately 70-page rate-based study “The Customer Journey to Motor Vehicle Insurance 2022” is available on the Today and Tomorrow website.

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