differentiating themselves in a crowded
So far, advertising has played a key role in
that effort. Advertising spend has increased
by a staggering 62% over a 10‐year period,
signifying a long‐term shift towards a consumer‐centric marketing approach that is
focused on communicating brand value to
consumers to win their business.
Market share in personal lines auto
segment is increasingly being consolidated among the top insurers. Today, the
top 10 insurers in terms of market share
write 72% of all business in the industry,
compared with just 64% in 2000.
These market share leaders consistently spend more on advertising than
their competitors, underscoring the impact that heavy advertising spend and
consumer‐centric marketing have on
winning new business.
Rising consumer expectations
Overall customer satisfaction with their
insurance purchase experience is at an
all‐time low of 839 (on a 1,000‐point
scale) according to our recent Insurance
Shopping Study. This is attributable to declining satisfaction across key factors that
drive the Purchase Experience Index.
With the shift away from channel‐
based relationship building and toward
more agile customer engagement across
channels, study findings show that new‐
buyer customers are most influenced by
the value proposition of the total insurance company.
Price continues to be the most influential factor in driving customer satisfaction in the purchase experience index
(36% importance weight), yet it is the
lowest‐scoring single factor in the study.
For many customers, the value proposition has never been clearly explained or
the tools and resources required to understand premiums are inadequate.
The other major factor influencing
auto insurance customer satisfaction
comes from outside the insurance industry. Digital service providers, such as
Amazon, Netflix and Uber have irrevocably influenced consumer expectations
and preferences, and have ushered in an
era in which successful companies are
providing products and services to consumers that are relevant, personalized,
easy and timely. Despite significant tech
investment, the auto insurance industry
has been playing catch-up with other
consumer-facing industries on this front.
Maximizing the digital
With consumers empowered like never
before and expecting greater access and
more personalized touch points, insurers
need to ensure they are proficient in providing an omnichannel experience. This
includes an ecosystem of digital offerings,
such assisted online, responsive or mobile‐
optimized websites, and mobile apps.
Shoppers who use digital offerings
during the shopping experience are more
satisfied with the quote process than
shoppers who use traditional channels.
Assisted online, for instance, is only used
by 6% of shoppers, yet the average quote
satisfaction among these shoppers is
773—62 points higher than quote satis-
faction among website shoppers. Notably,
this “people plus digital” solution cur-
rently yields the highest satisfaction with
the quote process.
Insurers are falling short in terms of
providing customers with relevant and
personalized digital experiences. According to Centric Digital, 42% of insurers do
not meet best practices related to digital
cross‐channel personalization. With Amazon and InsurTech companies setting
the pace for personalization, insurers will
increasingly be expected to provide tailored digital experiences, or get disrupted
by someone who does.
Insur Tech and alternative
Insurtech companies — those who use
technology to innovate insurance practices — have raised over $7.1B globally
since 2012, and have increased funding
by 42% from 2016 to 2017 according to
The primary focus of Insur Tech is on
enhancing an incumbent or traditional
insurers’ value chain rather than disrupting it, which presents partnership
opportunities for incumbent insurers.
Moreover, the focus on innovation for 2017 2010 2000
U.S. PERSONAL LINES
AUTO INSURANCE MARKET
SHARES BY DPW
Top 100 Insurers Today
*Note: 2013-2016 data has been adjusted to accommodate the impact of responsive survey design
2013 2014 2015 2016 2017 2018
PURCHASE EXPERIENCE CSI 6-YEAR TREND*
Price CSI Overall CSI