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The Insurance Purchase Decision - US - August 2017

Published By :

Mintel

Published Date : Aug 2017

Category :

Insurance

No. of Pages : N/A

Insurance is not a product consumers particularly like to buy, and they don’t typically switch companies once they have purchased what they need. Insurers need to find new customers where possible, often among young people or those who are entering a new lifestage. Once they get a new customer, interactions between customer and insurer will be infrequent, so it is important for insurers to find ways to develop an ongoing relationship with customers outside of transactions. Being available to customers via all channels digital and human will also be a key factor in success.

Table of contents

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Differentiation is a challenge
Figure 1: Attitudes toward insurance and insurance companies, by demographics, May 2017
Most prefer to use one insurance company – but still want to shop around
Figure 2: Attitudes toward insurance and insurance companies, May 2017
Online and mobile tools are still underused
Figure 3: Uses of online/mobile functions, by generation, May 2017
The opportunities
Hispanics need health and life insurance
Figure 4: Insurance ownership, by Hispanic origin, May 2017
Young women are especially responsive to incentives
Figure 5: Insurance purchase behaviors, by gender and age, May 2017
Figure 6: Progressive loyalty reward email, 2017
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Premiums are growing
Uncertainty of health care and the ACA
Continued low unemployment
Car sales are going higher
Homeownership among Blacks and Hispanics is lagging
MARKET BREAKDOWN
Property and casualty premiums are increasing
Figure 7: Property and casualty insurance premiums written, 2011-15
Life insurance premiums jumped in 2015
Figure 8: Life insurance premiums, 2011-15
Total life insurance coverage is up
Individual life insurance policies purchases are increasing
Figure 9: individual life insurance policies purchased in US 2011-15
MARKET FACTORS
Uncertainty of health care and the ACA
Continued low unemployment
Figure 10: US unemployment rate, May 2012-May 2017
Car sales are going higher
Figure 11: Total US unit sales and forecast of new and used light vehicles, 2011-21
Homeownership among Blacks and Hispanics is lagging
Figure 12: Homeownership rates, by race and Hispanic origin, Q1 2012-Q1 2017
KEY PLAYERS – WHAT YOU NEED TO KNOW
Technology is easing the journey
Industry is facing a talent shortage
Mobile apps are still not popular
Artificial intelligence is growing in importance
Crowdsourcing expands to the insurance industry
WHAT’S WORKING?
Technology is easing the journey
Figure 13: Important factors, by generation, May 2017
Insurers join with TrueCar to offer car buying services
Figure 14: Allstate and GEICO car buying service email ads, 2017, 2016
WHAT’S STRUGGLING?
Industry is facing a talent shortage
Mobile apps are still not popular
Figure 15: Mobile app usage, by type of insurance, May 2017
Figure 16: Allstate Drivewise direct mail piece, 2016
WHAT’S NEXT?
Artificial intelligence
Insurify
Lemonade
Crowdsourcing
Figure 17: Attitudes toward insurance and insurance companies, by generation, May 2017
Figure 18: Liberty Mutual email ad, 2017
Trov – On-demand P&C insurance on its way to the US
Figure 19: Purchase behaviors, by generation, May 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
Most people have at least three types of insurance
Family and friends are the most important influence
Agents are more important to older consumers
Most important factor: monthly premiums
Agents are still instrumental
Young Hispanics prefer independent agents
Millennials at greatest risk
LOCATION OF ACCOUNTS
Most people have at least three types of insurance
Figure 20: Number of insurance types, repertoire group, May 2017
Figure 21: Allstate bundling email ad, 2017
Hispanics and Blacks lag in insurance ownership
Figure 22: Type of insurance owned, by Hispanic origin and race, May 2017
Health insurance is likely to be purchased through employer; life insurance independently
Figure 23: Type of insurance owned, May 2017
SOURCE OF INFORMATION
Family and friends are the most important influence
Figure 24: Source of information, May 2017
Older consumers rely on agents for information
Figure 25: Source of information, by generation, May 2017
What do consumers remember from ads?
IMPORTANT FACTORS
Monthly premiums are the most important
Figure 26: Most important factors in insurance policy/provider, May 2017
Figure 27: Progressive premium savings email ad, 2017
Parents want flexibility
Figure 28: Most important factors in policy/provider, by parental status, May 2017
Millennials care about others’ opinions
Figure 29: Value of consumer reviews, by generation, May 2017
In consumers’ words: price and coverage rank high
AGENTS OR TECHNOLOGY?
Agents are still instrumental
Figure 30: Purchasing channels, by type of insurance, May 2017
Young Hispanics prefer independent agents
Figure 31: Attitudes toward insurance and insurance company, by Hispanic origin and generation, May 2017
How consumers purchase insurance
Technology is important to younger men
Figure 32: Use of technology, by gender and age, May 2017
Motorcycle and renters insurance customers use technology
Figure 33: Use of technology, by type of insurance, May 2017
Humans vs technology
SWITCHING ACTIVITY
Parents like to shop around
Figure 34: Attitudes toward insurance and insurance companies, by parental status, May 2017
Millennials at greatest risk
Figure 35: Attitudes toward insurance and insurance companies, by generation, May 2017
Figure 36: Allstate life insurance calculator email, 2017
RENEWAL PREFERENCES
Millennials want to shop around, but still stay with same company
Figure 37: Renewal preferences, by generation, May 2017
Figure 38: Liberty Mutual Email ad, 2016
CHAID analysis
Hispanic Millennials most likely to shop around at renewal time
Figure 39: Renewal preferences – CHAID – Tree output, May 2017
Figure 40: Renewal preferences – CHAID – Table output, May 2017
CLUSTER ANALYSIS
Figure 41: Insurance purchase clusters, May 2017
Cluster 1: Young Independents
Characteristics
Opportunity
Cluster 2: Disengaged Disinteresteds
Characteristics
Opportunity
Cluster 3: Heavily Insureds
Characteristics
Opportunity
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Consumer qualitative research
Direct marketing creative
Abbreviations
Abbreviations
APPENDIX – CHAID ANALYSIS
Methodology
APPENDIX – THE CONSUMER
Figure 42: Health/life insurance ownership, by generation, January 2016-March 2017
Figure 43: Type of health/life insurance owned, by generation, January 2016-March 2017
Figure 44: How obtained current medical policy, by generation, January 2016-March 2017
Figure 45: Property and vehicle insurance, by generation, January 2016-March 2017
Figure 46: How obtained homeowners or tenants insurance, by generation, January 2016-March 2017

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