The days of ignoring younger policyholders are numbered. Millennials recently became the largest demographic in the U.S. and insurers who evolve to create compelling digital customer experiences will be the ones who succeed
WALTHAM, Mass. (PRWEB) March 31, 2021
Mobiquity, a digital consultancy that designs and delivers compelling digital products and services for the world's leading brands, released today results of a new Insurance Loyalty Drivers Report. The new report uncovered the opportunity for insurance companies to improve digital tools in order to strengthen loyalty among existing customers and as a compelling differentiator to attract new customers. The opportunity is strongest among younger generations who have higher expectations for digital experiences and are more likely to consider switching insurance providers if those expectations are not met. Mobiquity surveyed more than 1,000 insurance customers 18 years of age or older in the U.S. about five specific types of insurance: auto, homeowners, renters, “toys,” and business. The survey responses provide unique insights to each individual policy area as well as a glimpse into current habits of policyholders, how they predict these habits will change in the future, and what might influence those changes.
According to Mobiquity’s findings, younger policyholders are less satisfied and less loyal. In fact, those under 55 are almost three times more likely to switch policies in the next 12 months than older consumers. Younger policyholders are also more likely to have increased their usage of digital tools to manage their policies. 59% of those 56 and older reported their activities have remained the same in the previous 12 months in comparison to only 28% of those aged 18 to 24. Among all who were surveyed, more than half said that switching insurers is easier than it used to be and 30% reported that they would switch insurers for better digital features.
"Our Insurance Loyalty Drivers Report showed that since loyalty is much stronger among older policyholders, the vast majority of future growth is going to be driven by younger generations who have heightened expectations when it comes to digital experience," said Brian Levine, Vice President of Strategy and Analytics at Mobiquity. “The days of ignoring younger policyholders are numbered. Millennials recently became the largest demographic in the U.S. and insurers who evolve to create compelling digital customer experiences will be the ones who succeed with this generation and those to come after.”
Additional findings of Mobiquity’s Insurance Loyalty Drivers Report include:
- Positive reviews are a selling point. 40% of those surveyed would consider switching providers to one with better reviews.
- Apps can create stronger loyalty. 38% of those surveyed agree that once they’ve downloaded their insurers mobile app, they are less likely to switch.
- There’s room for improvement across all ages. When asked to rate overall satisfaction using digital tools to manage insurance policies, no age group reached a score above 79% in any of the individual insurance categories.
- Motivating factors to switch providers vary by age group. When asked about the things most likely to cause a switch in insurance provider, lower rates for equivalent coverage and a company who helped reduce the risk of getting into an accident/claim were the top two factors across both age groups. However, the next two factors ranked by those 55 and older were finding an agent closer to where they live (32%) and receiving a better in-person experience (29%). Whereas among those under 55, the next top ranked factors were wanting an easier to use mobile app (39%), more digital options to manage the policy or handle claims (37%) and an insurance company with better online reviews vs their current company (27%).
The full Insurance Loyalty Drivers Report is available at https://www.mobiquity.com/exploring-drivers-of-loyalty-among-younger-insurance-policyholders. If you are interested in learning more about how Mobiquity is quickly transforming companies’ digital strategies, see here: https://www.mobiquity.com/our-work
Mobiquity is a digital consultancy that partners with the world's leading brands to design and deliver compelling digital products and services for their customers. Its approach balances human needs with usefully applied technology, unbound creativity with research and analytics, and agile development with strict engineering and security standards. Mobiquity's end-to-end services consider every dimension of a digital business from marketing to IT, providing strategy, experience design, product engineering, cloud services and analytics. Mobiquity has extensive experience in creating new greenfield digital banks and new labels for our Fintech and incumbent banking clients. Based on this experience, we have set up and defined general designs, frameworks, workflows and building blocks that accelerate the setup of a new bank, ensure a short time to market and make use of proven best practices.
To learn more, visit https://www.mobiquity.com.