Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Differentiation is a challenge
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- 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
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- Figure 2: Attitudes toward insurance and insurance companies, May 2017
- Online and mobile tools are still underused
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- Figure 3: Uses of online/mobile functions, by generation, May 2017
- The opportunities
- Hispanics need health and life insurance
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- Figure 4: Insurance ownership, by Hispanic origin, May 2017
- Young women are especially responsive to incentives
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- Figure 5: Insurance purchase behaviors, by gender and age, May 2017
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- Figure 6: Progressive loyalty reward email, 2017
- What it means
The Market – What You Need to Know
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- 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
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- Property and casualty premiums are increasing
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- Figure 7: Property and casualty insurance premiums written, 2011-15
- Life insurance premiums jumped in 2015
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- Figure 8: Life insurance premiums, 2011-15
- Total life insurance coverage is up
- Individual life insurance policies purchases are increasing
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- Figure 9: individual life insurance policies purchased in US 2011-15
Market Factors
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- Uncertainty of health care and the ACA
- Continued low unemployment
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- Figure 10: US unemployment rate, May 2012-May 2017
- Car sales are going higher
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- Figure 11: Total US unit sales and forecast of new and used light vehicles, 2011-21
- Homeownership among Blacks and Hispanics is lagging
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- Figure 12: Homeownership rates, by race and Hispanic origin, Q1 2012-Q1 2017
Key Players – What You Need to Know
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- 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?
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- Technology is easing the journey
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- Figure 13: Important factors, by generation, May 2017
- Insurers join with TrueCar to offer car buying services
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- Figure 14: Allstate and GEICO car buying service email ads, 2017, 2016
What’s Struggling?
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- Industry is facing a talent shortage
- Mobile apps are still not popular
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- Figure 15: Mobile app usage, by type of insurance, May 2017
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- Figure 16: Allstate Drivewise direct mail piece, 2016
What’s Next?
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- Artificial intelligence
- Insurify
- Lemonade
- Crowdsourcing
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- Figure 17: Attitudes toward insurance and insurance companies, by generation, May 2017
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- Figure 18: Liberty Mutual email ad, 2017
- Trov – On-demand P&C insurance on its way to the US
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- Figure 19: Purchase behaviors, by generation, May 2017
The Consumer – What You Need to Know
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- 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
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- Most people have at least three types of insurance
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- Figure 20: Number of insurance types, repertoire group, May 2017
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- Figure 21: Allstate bundling email ad, 2017
- Hispanics and Blacks lag in insurance ownership
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- 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
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- Figure 23: Type of insurance owned, May 2017
Source of Information
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- Family and friends are the most important influence
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- Figure 24: Source of information, May 2017
- Older consumers rely on agents for information
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- Figure 25: Source of information, by generation, May 2017
- What do consumers remember from ads?
Important Factors
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- Monthly premiums are the most important
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- Figure 26: Most important factors in insurance policy/provider, May 2017
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- Figure 27: Progressive premium savings email ad, 2017
- Parents want flexibility
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- Figure 28: Most important factors in policy/provider, by parental status, May 2017
- Millennials care about others’ opinions
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- Figure 29: Value of consumer reviews, by generation, May 2017
- In consumers’ words: price and coverage rank high
Agents or Technology?
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- Agents are still instrumental
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- Figure 30: Purchasing channels, by type of insurance, May 2017
- Young Hispanics prefer independent agents
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- 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
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- Figure 32: Use of technology, by gender and age, May 2017
- Motorcycle and renters insurance customers use technology
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- Figure 33: Use of technology, by type of insurance, May 2017
- Humans vs technology
Switching Activity
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- Parents like to shop around
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- Figure 34: Attitudes toward insurance and insurance companies, by parental status, May 2017
- Millennials at greatest risk
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- Figure 35: Attitudes toward insurance and insurance companies, by generation, May 2017
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- Figure 36: Allstate life insurance calculator email, 2017
Renewal Preferences
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- Millennials want to shop around, but still stay with same company
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- Figure 37: Renewal preferences, by generation, May 2017
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- Figure 38: Liberty Mutual Email ad, 2016
- CHAID analysis
- Hispanic Millennials most likely to shop around at renewal time
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- Figure 39: Renewal preferences – CHAID – Tree output, May 2017
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- Figure 40: Renewal preferences – CHAID – Table output, May 2017
Cluster Analysis
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- 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
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Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations
- Abbreviations
Appendix – CHAID Analysis
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- Methodology
Appendix – The Consumer
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- Figure 42: Health/life insurance ownership, by generation, January 2016-March 2017
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- Figure 43: Type of health/life insurance owned, by generation, January 2016-March 2017
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- Figure 44: How obtained current medical policy, by generation, January 2016-March 2017
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- Figure 45: Property and vehicle insurance, by generation, January 2016-March 2017
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- Figure 46: How obtained homeowners or tenants insurance, by generation, January 2016-March 2017
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