Three key findings

Our report revealed the habits of policyholders and what might influence them moving forward. Overall, we found that older policyholders tend to be more loyal. But we also discovered several areas for improvement related to digital tools, especially for younger customers.

Older consumers are overall more satisfied with insurance providers than their younger counterparts. There's an inverse relationship between customers' overall satisfaction with their providers and age. When it comes to auto insurance, 91% of respondents ages 56 years and older said they are "very satisfied" or "satisfied" with their current providers, while less than 80% of those ages 18 to 39 responded similarly. Considering that millennials recently passed baby boomers as the largest demographic in the U.S., it's essential for insurance companies to understand their habits and preferences. Millennials also are much more likely to switch providers than baby boomers, making them the most opportunistic area for growth.
Customers under 55 are almost three times more likely to switch insurance providers than those over 55, with digital tools being a prime motivator. Older customers' predominant reason for switching providers is to receive a lower rate for equivalent coverage, followed by the desire to find an agent closer to where they live and better in-person experiences. Younger generations did not place as much emphasis on better in-person experiences or lower rates, and placed significant emphasis on better digital tools. We found that younger policyholders are approximately twice as likely as their older counterparts to switch to an insurer with better digital options and a stronger mobile app. And nearly a third of policyholders under 55 would switch to an insurer with positive online reviews, versus only 19% of those over 55.
While better digital tools can attract younger customers, they can just as effectively retain them. Overall, digital tools are more relevant in younger consumers' lives. Compared to older customers, younger generations are much more likely to have increased their frequency of digital tool usage to manage insurance policies in the past 12 months. Of the respondents that increased their mobile app usage, more than 90% were under 55 years old. When asked how important various factors are in continuing business with a provider, younger customers placed more emphasis on digital innovation than those over 55. Specifically, 57% of those over 55 responded that an easy to use mobile app was important to them, versus 85% of those under 55.

Listen to your customers

Across age groups, satisfaction with digital insurance tools is relatively consistent. But even the highest satisfaction scores didn't exceed 79%, which means there's plenty of room for improvement. Since loyalty is much stronger among older policyholders, future growth will likely be driven by younger generations who have higher expectations for digital experiences.

Special Reports /

How digital insurance tools affect generational brand loyalty

Related Stories

Recommended For You