LexisNexis Risk Solutions Study Illustrates How Auto Insurers Can More Effectively Engage with Their Policyholders

Rhea-AI Summary

LexisNexis Risk Solutions released a study examining U.S. consumer auto insurance shopping behavior. The survey, involving over 2,000 policyholders, found that 74% want more communication from their insurers beyond renewal notices. Despite this, only 46% reported any outreach from their carriers during the policy term. Key insights suggest that policyholders prefer email communication, with 90% favoring it. Additionally, knowing major life events could enhance engagement, as half of those affected by such events reconsidered their insurance choices. The study emphasizes the need for insurers to tailor their outreach strategies to retain customers.

Positive

• 74% of policyholders desire more engagement from insurers beyond renewal notices.
• 90% prefer to be contacted via email, making it the top channel for communication.
• The survey reveals opportunities for insurers to engage with customers based on major life changes.

Negative

• Only 46% of respondents were contacted by their insurer during the policy term, indicating poor engagement.
• Nearly half of policyholders who switched carriers cited lack of outreach from their existing provider as a reason for switching.

ATLANTA, Sept. 1, 2020 /PRNewswire/ -- LexisNexis® Risk Solutions, a leading provider of data, analytics and technology for the insurance industry, released the findings of its latest U.S. consumer auto insurance shopping study, providing key insights to help insurers improve their engagement strategies in order to help increase policyholder retention. The study reveals good news for insurers – policyholders do in fact want to hear from their auto insurer, more than they are currently today, but it has to be on their own terms. And, when insurer communication is lacking, consumers can be easily tempted to shop with another carrier.

LexisNexis Risk Solutions conducted the survey of more than 2,000 U.S. auto insurance policyholders earlier this year to help insurance carriers improve their customer acquisition and retention strategies. Participants had researched or actively shopped for auto insurance within the year. The findings reveal that the majority of consumers (74%) say they want to hear from their insurance carrier at renewal in addition to the renewal notice. In addition, more than half (57%) are open to outreach anytime during the policy term. Despite consumers' preferred desire for regular communication, only 46% of respondents said they were contacted by their carrier at any point during their policy term, outside of the regular renewal notice.  

"With easy-to-use websites, mobile apps and always-on call centers, it's easier than ever to shop for insurance policies, and consumers are actively taking advantage―both on and off policy cycle," said Ian Griffin, director, product management, LexisNexis Risk Solutions. "It's encouraging to know that customers are willing to listen, but effective outreach is a balancing act, and you need to make sure you have the right listening and communication strategies in place to avoid attrition, and ideally build customer loyalty."

The Right Time with the Right Message
There's an opportunity for insurers to be more proactive in reaching out and engaging with policyholders across the entire policy lifecycle, but that outreach needs to be meaningful, and delivered on their terms. Research found that most policyholders are eager to talk about pricing and discounts, but engagement shouldn't end there. Other topics of interest to policyholders include their options for additional coverage (39%) and bundling (31%), as well as the opportunity to provide any feedback they may have (29%). This is even more apparent for millennials, as 33% wish to provide feedback.

Major life events are also critical in consumers' shopping and decision making, and this information is crucial to carriers. In a 2019 LexisNexis study, of the 60% of respondents that had recently experienced a major life event, half claimed that the event affected their decision to shop their auto insurance. Knowledge of consumer life changes gives carriers significant opportunities to expand coverage with current policyholders and further establishes the carrier as a trusted advisor.

Prove You Know Your Customer 
The survey results underscore that it is critical to reach out to customers, but it is also important to understand your target audience's preferences and tailor outreach accordingly. When it comes to how customers want to hear from their carriers, 90% say they prefer to be contacted by email, making it the number one platform. The second most-preferred method of contact is mobile apps (43%) among Millennials, and a phone call for Gen Xers (41%) and Baby Boomers (55%).

When it comes to cadence, nearly half (49%) of policyholders feel it's appropriate for their carrier to contact them within two to five days of them receiving a competitor's quote, but the majority (68%) don't want to be pestered and feel that one contact post-quote is enough. However, carriers who are too quiet and don't proactively reach out to their customers are at a disadvantage as nearly half (47%) of policyholders who switched to a new carrier said their existing carrier's failure to reach out influenced their decision to switch.

Use Easy Shopping to Your Advantage
The LexisNexis study also confirms that consumers see how easy and convenient auto insurance shopping can be. The ease of use leads to policyholders shopping with greater frequency― 47% of survey respondents had shopped their auto insurance more than once per year and 39% had switched carriers within the past year.

"Understanding when and how policyholders are shopping can lead to a huge competitive advantage," said Griffin. "For insurers looking to pay closer attention to their customers, LexisNexis® Active Insights can help to notify when a policyholder is shopping, which then enables the carrier to proactively engage them at the right time and consequently better retain their policyholders."

Consumers want to be Valued: a Lesson for Carriers
Knowing now that consumers welcome increased contact from their insurers, the question then becomes what should carriers be communicating to ensure that the outreach to their policyholders is engaging and well received? According to the study, consumer engagement that gives policyholders a voice and emphasizes how it is valued is absolutely critical. LexisNexis Risk Solutions recommends that carriers let their policyholders know that: 1) feedback is not only welcome, but encouraged; 2) carriers want to customize policies to best fit policyholders' needs; and 3) carriers care about policyholders and want to do whatever possible to make policyholders happy.

Carriers who master the cadence and messaging that consumers are looking for are the ones best positioned for long-term success. So, insurers, acknowledge that your policyholders' voices matter, and understand their communications preferences so you can tailor your outreach to meet their expectations.

To read the full LexisNexis Risk Solutions U.S. Consumer Report titled, "The Outreach Blueprint: How consumers want to be engaged by their carrier," click here.

About LexisNexis Risk Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers across industries. For more information, please visit www.risk.lexisnexis.com and www.relx.com.

Media Contacts:
Rocio Rivera
LexisNexis Risk Solutions
Phone: +1.678.694.2338
rocio.rivera@lexisnexisrisk.com 

Mollie Holman 
Brodeur Partners for LexisNexis Risk Solutions 
Phone: +1.646.746.5611
mholman@brodeur.com

View original content to download multimedia:http://www.prnewswire.com/news-releases/lexisnexis-risk-solutions-study-illustrates-how-auto-insurers-can-more-effectively-engage-with-their-policyholders-301121296.html

SOURCE LexisNexis Risk Solutions

FAQ

What does the LexisNexis Risk Solutions study reveal about auto insurance policyholders?

The study shows that 74% of policyholders want more communication from insurers, and only 46% reported being contacted outside of renewal notices.

What percentage of consumers prefer to be contacted by email for auto insurance communications?

90% of consumers prefer email as their primary method of communication with their insurers.

How does customer engagement affect auto insurance policyholders' decisions?

The study indicates that effective outreach can increase customer retention, with nearly half of those who switched carriers citing lack of outreach as a factor.

What impact do major life events have on auto insurance shopping behavior?

The study found that half of respondents who experienced major life events were influenced to shop for new auto insurance as a result.

What is the main finding of LexisNexis Risk Solutions regarding policyholder preferences?

The main finding is that policyholders value meaningful communication and want insurers to tailor their outreach based on individual needs and preferences.