The biggest missed opportunity for insurers not using driving behavior data in their pricing models is a failure to realize increased accuracy and granularity in their risk selection and pricing models, preventing them from targeting, selling and retaining better risks at a more sustainable price than they are today. (Adobe Stock)
A recent J.D. Power study suggests insurance-price shopping is on the rise. How might the rise in shopping impact insurer retention strategies?
More people shopping around for auto insurance is a clear sign that consumer behavior is shifting. In a market where buyers have the upper hand, loyalty isn’t something insurers can take for granted anymore. Customers are quicker to switch if they don’t feel like they’re getting real value. Insurers need to utilize both pricing and non-pricing related tools to maximize their competitiveness in a shopper’s market.
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