Table of Contents
Executive Summary
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- Insurance Ownership
- What you want to know
- What we see
- Switching Carriers
- What you want to know
- What we see
- Insurance & Technology
- What you want to know
- What we see
- Attitudes
- What you want to know
- What we see
- What it means
The Market – What You Need to Know
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- Net premiums increase, but industry’s books outweighed by record losses
- Top P&C insurer rankings remain steady
- Average auto policy expenditure increasing at record high
- Homeowners premiums creep up as housing market improves
Market Size
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- Top 10 writers of property & casualty insurance
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- Figure 1: Top 10 writers of property and casualty insurance, by direct premiums written, 2017
- Nearly 9 in 10 consumers own a P&C policy
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- Figure 2: Insurance ownership, by Age, January 2019
Market Breakdown
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- Cost of homeowners policies creeps up, as housing market slowly improves
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- Figure 3: Average premiums for homeowners and renters insurance, in current dollars, 2006-16
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- Figure 4: Home ownership rate, by age, 2007 versus 2017
- Auto insurance expenditure saw large uptick in 2016
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- Figure 5: Average auto insurance expenditures, in current dollars, 2006-16
- Total auto sales remain steady, as popularity of SUVs skyrockets
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- Figure 6: US Vehicle Sales, Rolling 12-month totals, December 1993 – December 2018
Key Players – What You Need to Know
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- Personal cyber security policies rise in popularity
- Natural disasters erode industry profits
- State guidelines redefine underwriting capabilities
- Parametric insurance could redefine some policy types
What’s Happening?
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- Personal cyber security policies rise in popularity
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- Figure 7: LifeLock acquisition email, February 2019
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- Figure 8: AAA member email, November 2018
- Parametric insurance could redefine some policy types
- Hippo home insurance raising money and utilizing AI
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- Figure 9: Hippo acquisition mailer, January 2019
What’s Struggling?
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- Natural disasters erode industry profits
- Despite clamor, blockchain application remains largely on the drawing board
- Most renters are rolling the dice with insurance coverage
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- Figure 10: Renters insurance ownership among renters, by age and income, January 2019
What’s New and What’s Next?
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- New York OKs use of social media data for life insurers
- California bans use of gender in auto underwriting
- Trōv brings single-item insurance policies for tech gadgets and gear
The Consumer – What You Need to Know
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- Those with multiple policies likely bundle insurance with one carrier
- A large part of the US renter population is uninsured
- 18-34-year-olds are the most likely to switch insurers
- Mobile interactions are on the rise, especially among younger consumers
- Insurance by Google? One third of consumers are interested...
Current Insurance Ownership
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- Those with multiple policies likely bundle insurance with one carrier
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- Figure 11: Insurance ownership, bundling policies, by age, January 2019
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- Figure 12: GEICO, Cross-Sell email, October 2018
- Most renters are rolling the dice with insurance coverage
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- Figure 13: Renters insurance ownership among renters, by age and income, January 2019
Switching Behaviors
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- Consumers switch auto and renters policies most frequently
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- Figure 14: Incidence of switching policies and making claims, by insurance type, January 2019
- 18-34-year-olds are the most likely to switch insurers
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- Figure 15: P&C insurer switching behavior, by age, January 2019
- Price is the most important driver of loyalty
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- Figure 16: Motivating factors in switching P&C insurers, January 2019
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- Figure 17: Liberty Mutual, Acquisition email, July 2018
Tech-Focused Insurance Behaviors
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- Mobile interactions are on the rise, especially among younger consumers
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- Figure 18: Use of insurance technology, by age, January 2019
- Insurance by Google? One third of consumers are interested...
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- Figure 19: Interest in insurance from a startup or tech company, by age, January 2019
- Smart home devices pique significant consumer interest
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- Figure 20: Interest in smart home devices, by race and ethnicity, January 2019
Future P&C Offerings
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- Consumers want discounts more than anything else
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- Figure 21: Interest in future P&C insurance offerings, January 2019
- Parents and Hispanics are most desirous of customer service enhancements
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- Figure 22: Interest in future P&C insurance offerings, by parental status, January 2019
- Figure 23: Interest in future P&C insurance offerings, by Hispanic origin, January 2019
- Usage-based auto policies are broadly popular; car and home sharing gaining intrigue
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- Figure 24: Interest in future P&C insurance offerings, by age, January 2019
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- Figure 25: Progressive, Acquisition email, January 2019
- Figure 26: Metromile, Acquisition email, January 2019
Attitudes toward Insurance
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- Consumers expect transparency and real time communication…
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- Figure 27: Consumer expectations of insurer, by generation, January 2019
- …but only half of consumers would recommend their P&C insurer
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- Figure 28: Likelihood of recommending P&C insurer, by generation, January 2019
- Many consumers believe “insurance companies are all the same”
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
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