Customers find little differentiation among auto insurers – J.D. Power
A 55% decrease in average kilometers traveled and a record unemployment rate of 15% prompted many auto insurance customers to look for new insurance coverage following the outbreak of the pandemic last year. However, buyers found an increasingly homogenized market where price was the main differentiator, according to JD Power. According to the company's US Insurance Shopping Study from 2021, insurers' efforts to differentiate themselves in the market will increasingly depend on bringing more innovative products and services to market. "The pandemic revealed a lot about insurance purchasing behavior in 2020 as there has been a significant increase in purchasing activity from customers who have been financially affected and interested in big, well-known brands and offers for lower prices," said Tom Super, Head of property and casualty insurance at JD Power. “Experience highlights the need for more sophisticated acquisition and storage tools. Ironically, even thoug...