J.D. Power releases data on insurance customer loyalty

J.D. Power releases data on insurance customer loyalty | Insurance Business America

Insurance News

J.D. Power releases data on insurance customer loyalty

New report provides an overview of auto insurance shopping and loyalty behavior

Insurance News

By
Ryan Smith

J.D. Power has announced the publication of its quarterly loyalty indicator and shopping trends (LIST) report.

The report, conducted in partnership with TransUnion, provides an overview of auto insurance shopping and loyalty behavior.

The LIST report found that a slowdown in insurance shopping hit in December and lasted into January before making a dramatic turnaround in February, rising from 11.6% to 12.6%.

Shopping spiked even higher in March, rising to 13.1% – a new record for the data series, J.D. Power said. The report noted that insurance shopping tends to be higher in April, so this month may see the record surpassed again.

Quarterly quote rates increased across three out of four US regions:

Northeast: from 9.9% in Q4 2022 to 10% in Q1 2023
Midwest: from 11.4% in Q4 2022 to 11.8% in A1 2023
South: from 13.1% in Q4 2022 to 13.8% in Q1 2023
West: from 12.4% in Q4 2022 to 12.2% in Q1 2023

The overall switch rate stayed strong at 3.9%, down slightly from 4.1% in Q4.

“Last month’s report described how the industry is in a difficult position: it’s facing intense cost pressures and, in some areas, an inability to raise rates, and less money to spend on advertising,” J.D. Power said. “Some are closing acquisition channels. All of this comes as consumers may be financially stressed or constrained.”