Conning: Insurers Must Stay On Top of Customers’ Changing Behaviors

NU Online News Service, Feb. 22, 3:39 p.m. EST

Insurance executives are being challenged to understand their evolving customer base—one with different needs and access.

According to a new study from Conning Research & Consulting, consumers are more comfortable shopping online; they tend to surrender private information with greater ease; they are increasingly focused on price; and have shown a preference for increasing connectivity.

“Armed with an increasing level of access to market information and decision-making tools, and tied into a growing network of potential advisers, the consumer is exercising more leverage in the marketplace than at any time in recent memory,” says Conning in its report.

“Adapting the business to address the challenging preferences and buying behaviors of the consumer remains a foundation of competitive advantage,” continues Conning.

Shopping patterns are different than they were 20 years ago, says Conning. The demographics of the population are changing—with minority groups accounting for 83 percent of national population growth from 2000 to 2009.

Additionally, broken down by age, the most growth is now seen in the young and in those 65 and older: traditionally the two worst age groups for claims activity in auto insurance, Conning reports.

Clearly, consumers are shopping online and this preference is driving personal auto market development via growth in direct business from the Internet.

Conning finds consumers are more willing to share private information, and they are becoming increasing comfortable with products such as usage-based auto insurance as consumers continue a focus on price—especially after the recession changed buying behavior, says Conning.

“On-board monitoring opens up the ultimate in insurance pricing information—moving from proxy data to actual driving risk data,” Conning says.


Resource Center

View All »

Complimentary Case Study: Helping achieve your financial goals By:...

Find out how a Special Investigation Union used TLOxp to save the company money and...

Do Your Clients Hold The Right CDL License?

Learn about the various classes of CDL Licenses and the industries that are impacted by...

Integrated Content & Communications: A Key Business Issue For Insurers

Insurers are renewing their focus on top line growth, and many are learning that growth...

High Risk Insurance Coverage in the E&S Market

Experts discuss market conditions, trends and projected growth in a rapidly changing niche.

Top E-Signature Security Requirements

This white paper covers the most important security features to look for when evaluating e-signatures...

EPLI Programs Crafted Just For Your Clients

Bring us your restaurant clients, associations and other groups and we’ll help you win more...

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Personal Lines Pro eNewsletter

Critical insights into the personal auto, homeowners, and other consumer insurance markets to help P&C professionals stay informed – FREE! Sign Up Now!

Advertisement. Closing in 15 seconds.