Auto and home insurers might have a tough road ahead of themwhen it comes to expanding market share organically, but there aregrowth strategies they could pursue to capitalize on the evolvingneeds of today's increasingly tech-savvy personal-linesconsumers.

The challenges facing carriers and how to overcome them havebeen discussed here in a series of blogs over the past few months,based on the results of a pair of Deloitte Research surveys of1,080 auto consumers and a separate group of 1,080 homeowners'policyholders, summarized in a report on “The Voice of the Personal Lines Insurance Consumer: Buyers in theDriver's Seat.”

The good news for those carriers worried about retainingbusiness they already have is that the two groups surveyedexpressed high levels of satisfaction with both the price they payfor insurance and the services they receive, regardless of whetherthey buy coverage through an agent or directly from a carrier.

The bad news for those looking to grow by taking business awayfrom competitors is that such high satisfaction levels means itwon't be easy to pry these prospects loose and convince them to buyfrom a different source.

But the surveys did find that a significant percentage ofrespondents are open not only to changing carriers but to changingchannels as well—if the price and benefits were perceived to beworth the switch.

Perhaps the most marketable finding from these surveys is thatcarriers would be wise to redouble their efforts to capture thebusiness and maintain the loyalty of younger drivers andhomeowners, as the results suggest that inertia sets in as apolicyholder ages; they become less likely to shop their businessaggressively at renewal or to change carriers.

The same goes for those working with agents—the longerrespondents remain with their agents, the less likely they are tochange intermediaries or to buy direct. Targeting those in theirlate 30s, 40s, 50s and beyond might be tough sledding. The surveysindicate that insurers will likely find much more open-mindedprospects among the under-35 crowd when it comes to changingcarriers and distributors.

In contrast, those depending too heavily on a single channeleither for distribution or service also could find themselvesvulnerable, as consumers increasingly seek multiple touchpointoptions to interact with their personal-lines insurers.

And while carriers scramble to find a viable business modelduring this bleeding-edge phase of developing online (andparticularly mobile application) capabilities, they should keep inmind that younger respondents tend to be more demanding when itcomes to getting their services wherever they are, at any time ofthe day or night, over whichever device they choose.

Some policyholders might not yet fully appreciate the value ofsuch multichannel options, and perhaps some won't in the future.But for the majority of individuals, no matter what their age, theWeb has been fully integrated into their daily routines, as theyspend more of their personal and professional lives online. Mostare open to the idea of doing some of their shopping for productsand services and concluding transactions over the Internet. Demandfor more insurance information, sales and service options onlineare sure to follow.

A growing number of consumers today alreadyexpect 24/7 service delivered over their computer, laptop, tabletor smartphone via websites, mobile applications and social media.Demand for multichannel access is only likely to increase astoday's tech-immersed teenagers enter the workforce and startinsuring their cars and homes.

However, those carriers looking to substitute tech for the humantouch by disintermediating their agents and selling personal linesdirectly to policyholders might be in for a rude awakening, atleast in the short term, as a large segment surveyed expressed avery high degree of satisfaction with, and loyalty to, theircurrent intermediaries. In addition, a significant segment who nowbuy direct indicated strong interest in using an agent the nexttime they purchase a new policy.

But at the same time, a number of those using agents appearpoised to switch to direct channels. These trends may bode well forthose offering a direct-purchase option to complement theirexclusive or independent agency force.

Offering more options, not fewer, for shopping, transactions andservice would appear to be a key attribute for any leadingpersonal-lines carrier going forward—no matter how their customerschoose to buy a policy.

What strategies might a carrier pursue to fortify retention andbolster organic growth in this environment? In part, it depends onhow an insurer goes about distributing its products andservices.

• Direct-only organizations can enhance brand awareness andcredibility on social-media platforms; strengthen their ability toprovide advice for customers who need it; and also build loyalty byoffering more products, a more-satisfying customer experience andvalue-added services.

• Agent-only carriers can focus on maintaining their retentionof existing customers; target direct consumers who want more adviceas their coverage needs become more complex; and consider offeringtelematics-based products to price-sensitive customers.

• Multichannel insurers could develop a differentiated sales andservice experience across platforms; strengthen their pricingsophistication; and tailor their product portfolio to appeal totarget segments.

Bottom line, no matter how they do business today, thoseinsurers that respond most proactively and effectively to themounting demands and rising expectations of today's increasinglyhigh-tech, mobile consumers would be positioned not just to survivebut to prosper in the competitive, multichannel market that'semerging—not in the distant future, but even as we speak.

(You may download the full report on “The Voice of the PersonalLines Insurance Consumer: Buyers in the Driver's Seat” fromDeloitte Research at http://www.deloitte.com/view/en_US/us/Industries/Insurance-Financial-Services/a0f93dffd16f5310VgnVCM2000001b56f00aRCRD.htm.)