US Insurance Purchase Process Market Report 2021
$ 4,995 (Excl.Tax)
Report Summary
“Physical location closures and social distancing has resulted in increased usage for digital and mobile tools. Consumers are now going through online channels more than before when buying and researching insurance. Insurers and agents had to adapt and provide consumers with the digital tools they needed to account for the lack of face-to-face contact. Moving into the next normal, digital usage will persist due to the speed and convenience it offered consumers. Insurers and agents will need to continue embracing innovative digital solutions to stay ahead and provide a superior customer journey throughout the insurance purchase process.”
– Amr Hamdi, Finance Analyst
This Report looks at the following areas:
- The impact of COVID-19 on consumer behavior and the insurance purchase process.
- The purchase channels consumers use when purchasing different types of insurance.
- Attitudes toward insurers and insurance agents.
- Factors consumers consider when choosing a policy and provider.
Table of Contents
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Overview
- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: market context
- Economic and other assumptions
- What you need to know
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Executive Summary
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- Top takeaways
- More than half of consumers don’t find switching insurers difficult – providers should look to reward loyalty as a result
- Figure 1: Attitudes towards switching and bundling, April 2021
- Consumers still prefer traditional providers over non-traditional providers
- Figure 2: Attitudes towards insurance companies, by generation, April 2021
- Increasing digital adoption can be an opportunity to integrate the digital and the agent experience
- Figure 3: Factors in choosing a provider, by generation, April 2021
- Market overview
- Impact of COVID-19 on the insurance purchase process
- Figure 4: Short-, medium- and long-term impact of COVID-19 on the insurance purchase process, June 2021
- Opportunities and challenges
- Continue investing in digital to provide consumers with convenient and self-service solutions
- Agents are still key to insurance distribution
- Figure 5: Use of insurance agent, by generation, April 2021
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The Market – Key Takeaways
- Health and auto are the most popular types of insurance
- Declining unemployment rates means more opportunities for employer-sponsored health and life insurance
- Rising consumer confidence could translate into more demand for P&C insurance
- Health and auto are the most popular types of insurance
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Market Size
- Total US premiums continue to rise year over year
- Figure 6: US premiums written, by type, 2011-19
- UnitedHealth Group is the largest US insurer for direct premiums written
- Figure 7: Five largest US insurance groups, by direct premiums written, 2019
- Net premiums written totalled $634 billion for P&C insurers
- FIGURE 8: P&C insurance industry income analysis, in current dollars, 2015-19
- State Farm remains the market leader within the P&C insurance industry
- Figure 9: Top five property and casualty insurance groups by total direct premiums written, 2020
- Total US premiums continue to rise year over year
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Insurance Ownership
- Health and auto are the most popular types of insurance
- Figure 10: Insurance ownership, April 2021
- Age is a significant factor in insurance ownership
- Figure 11: Insurance ownership, by generation April 2021
- Impact of COVID-19 on the insurance purchase process
- Learnings from the Great Recession
- Health and auto are the most popular types of insurance
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Market Factors
- Declining unemployment rates means more opportunities for employer-sponsored health and life insurance
- Figure 12: Unemployment and underemployment, January 2007-April 2021
- Rising consumer confidence could translate into more demand for P&C insurance
- Figure 13: Consumer Sentiment Index, January 2007-April 2021
- Declining unemployment rates means more opportunities for employer-sponsored health and life insurance
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Market Opportunities
- Consumers’ preference for bundling can be the foundation for a one-stop-shop experience for all their insurance needs
- Figure 14: Attitudes towards switching and bundling, April 2021
- Smart homes create a wealth of opportunities for insurers
- Figure 15: Farmers Insurance partners with SimpliSafe, April 2021
- Consumers’ preference for bundling can be the foundation for a one-stop-shop experience for all their insurance needs
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Companies and Brands – Key Takeaways
- SoFi teams up with a host of providers to offer a one-stop shop for insurance referrals
- Figure 16: SoFi Protect, March 2021
- Thimble caters to the growing gig economy with its promise of on-demand and flexible coverage
- Figure 17: Thimble, May 2021
- The Nationwide Express app helps agents quote multiple products in as little as two minutes
- Figure 18: Nationwide Express, May 2021
- SoFi teams up with a host of providers to offer a one-stop shop for insurance referrals
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Competitive Strategies
- MassMutual’s LifeScore Labs partners with Sapiens to deliver data-driven risk scoring for more efficient underwriting and transparent results
- Figure 19: LifeScoreLabs, May 2021
- Amazon remains uniquely positioned to expand its healthcare presence
- Figure 20: Amazon Pharmacy, May 2021
- Ford and Metromile’s partnership could provide a glimpse into how auto insurance can be integrated within the car shopping experience
- Figure 21: Ford partners with Metromile, September 2020
- Figure 22: Attitudes towards alternative insurance purchase channels, by generation, April 2021
- MassMutual’s LifeScore Labs partners with Sapiens to deliver data-driven risk scoring for more efficient underwriting and transparent results
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The Consumer – Key Takeaways
- More than half of consumers currently have an insurance agent
- Brand reputation and customer service are key priorities for consumers seeking insurers
- Over half of consumers don’t find switching providers to be difficult
- The pandemic has stressed the importance of good life insurance for younger consumers
- More than half of consumers currently have an insurance agent
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Insurance Agents
- Over half of consumer currently have an insurance agent
- Figure 23: Use of insurance agent, by generation, April 2021
- ….and over half are very satisfied with them – pointing to the importance of agents in the insurance purchase process
- Figure 24: Satisfaction with insurance agent, April 2021
- Over half of consumer currently have an insurance agent
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Purchase Channels
- Almost two thirds of consumers get their health insurance through an employer
- Figure 25: Purchase channels – Health insurance, April 2021
- Over half of consumers also get their life insurance through an employer
- Figure 26: Purchase channels – Life insurance, April 2021
- Auto insurance is purchased through an agent either by phone or in person
- Figure 27: Purchase channels – Auto insurance, April 2021
- Homeowners and renters are purchased through agents or online
- Figure 28: Purchase channels – Homeowners or renters insurance, April 2021
- Almost two thirds of consumers get their health insurance through an employer
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Purchase Behaviors
- Purchasing auto insurance
- Online quote retrieval presents an opportunity for providers to up their digital footprint
- Figure 29: Purchase behaviors – Auto insurance, April 2021
- Millennials look to online quotes first when shopping for auto insurance
- Figure 30: Purchase behaviors – Auto insurance, by generation, April 2021
- Purchasing homeowners or renters insurance
- Agents remain favored for consumers shopping for homeowners or renters policies
- Figure 31: Purchase behaviors – Homeowners or renters insurance, April 2021
- Consumers prefer to go online first before following up with an agent
- Figure 32: Purchase behaviors – Homeowners or renters insurance, by age, April 2021
- Purchasing life insurance
- Consumers look to personal quotes and insurance agents if not getting it through an employer
- Figure 33: Purchase behaviors – Life insurance, April 2021
- Millennials lean on insurance agents for their life insurance needs
- Figure 34: Purchase behaviors – Life insurance, by generation, April 2021
- Purchasing auto insurance
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Insurance Behaviors
- Over half of consumers remained loyal to their provider for the past three years
- Figure 35: Loyalty towards insurance companies, April 2021
- Millennials are much more likely to switch providers
- Figure 36: Loyalty towards insurance companies, by generation, April 2021
- Millennials appreciate a mobile experience when managing their insurance
- Figure 37: Use of mobile apps, by generation, April 2021
- Younger consumers have had to make the most adjustments to their health insurance due to the pandemic
- Figure 38: Health insurance changed due to COVID-19, by generation, April 2021
- Over half of consumers remained loyal to their provider for the past three years
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Factors in Choosing a Policy or Provider
- Premiums are still the top factor when choosing a provider
- Figure 39: Factors in choosing a provider, April 2021
- Brand reputation and customer service are key priorities for consumers seeking insurers
- Figure 40: Factors in choosing a provider, by generation, April 2021
- The pandemic has accelerated the adoption of digital
- Figure 41: Factors in choosing a provider, by generation, April 2021
- Premiums are still the top factor when choosing a provider
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Attitudes towards Insurance and Providers
- Over half of consumers don’t find switching providers to be difficult
- Figure 42: Attitudes towards switching and bundling, April 2021
- Millennials, Gen X would prefer to bundle all of their policies
- Figure 43: Attitudes towards switching and bundling, by generation, April 2021
- Agents are integral to the insurance purchase process
- Figure 44: Attitudes towards insurance agents, April 2021
- Majority of consumers prefer companies with long histories and track records to match
- Figure 45: Attitudes towards insurance companies, by generation, April 2021
- Auto-renewal is the preference for most consumers, but over half still believe in the importance of quote comparisons
- Figure 46: Attitudes towards automatic renewal and quote comparisons, April 2021
- The pandemic has stressed the importance of good life insurance for younger consumers
- Figure 47: Attitudes towards life insurance due to COVID-19, by generation, April 2021
- Over half of consumers don’t find switching providers to be difficult
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Appendix – Data Sources and Abbreviations
- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Data sources
About the report
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
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