Anew study by J.D. Power, in collaboration with TransUnion, reveals that Progressive and GEICO were the biggest winners in the American auto insurance industry Q2 of 2021. The Quarterly Shopping List Report examines car insurance quote and switch rates.
The study shows some significant shifts
Image source: J D Power
The switching trend is between major incumbent to major incumbent rather than to new innovative full stack insurtechs. Maybe we need to wait longer or is it that incumbents are partnering and white labelling new kids on the block?
It would be good to know what drives the switching. Product innovation or price? Latter is a slippery slope.
Post-pandemic, American's car buying habits are getting back into full swing. Though the semiconductor chip shortage has cut output from plants, many buyers are purchasing vehicles before or as soon as they arrive on dealership lots.
American's driving habits are also changing as new drivers gain licenses, workers resume their commutes into the office, and travellers hit the road. These changing habits, along with purchases of new vehicles are giving buyers a reason to shop for the best rates. J.D. Power believes that "tremendous pent-up consumer demand" will "continue to have implications on auto insurers" through Q3 and Q4.
BY EILEEN FALKENBERG-HULL ON 7/12/21 AT 6:30 PM EDT in Newsweek
Customers of Allstate, GEICO, State Farm and Travelers were most likely to switch to Progressive. American Family Insurance policy holders regularly moved to Allstate while Farmers, Progressive, and USAA clients switched to GEICO. State Farm contested business from Nationwide and Liberty Mutual. USAA, Amica, The Hartford, Kemper, Nationwide and State Farm had the most customer loyalty in the second quarter of 2021. National General, ACG, Progressive, SafeCo and Auto Owners insurance have the least loyal customers.
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