A report from Bain & Co. suggests that many carriers are getting their digital investments wrong in the U.S. property and casualty insurance market, and as a result, alienating some of their most valuable customers in the process.

While many carriers may be getting carried away by the digital tide, Bain's "Customer Loyalty in P&C Insurance: US Edition 2014" suggests that these companies are investing to please the wrong customers. The study shows that digital-only customers are the least valuable in terms of loyalty, and suggests that insurers should focus their investments in a multichannel approach that emphasizes the human touch, not just their website.

As the industry continues to grow, carriers rely on acquisitions, retention and cross-selling to establish themselves and earn customers' goodwill, creating more promoters in the customer base. Measuring the performance of each of these areas in various companies, the survey found that few carriers excel in both acquisition and retention. While acquisition leaders attract customers who are price-sensitive, they are more likely to defect when presented with a lower-priced offer. In contrast, companies that lead in retention have a greater share of people in their customer base who value peace of mind. These customers tend to be older, more affluent and have more complex insurance needs.