J.D. Powers: Customer Retention Becomes Critical for P&C Carriers in Current Economy

A new survey by J.D. Powers and Associates shows that customer retention has become crucial for insurers in light of the current economy. The report finds that in the past 12 months, 30 percent of households with annual incomes below $50,000 shopped for a new insurance carrier and 45 percent of those customers eventually switched carriers. In contrast, only 26 percent of more affluent households (those with incomes of $100,000 or more) shopped for a new carrier, with only 31 percent of shoppers eventually switching.

"While 90 percent of customers overall stayed with their insurance carrier during the past 12 months, those households that are potentially more impacted by the recession present a real challenge for insurance carriers," says Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. "Although several carriers in the industry—including Auto-Owners, GEICO, Liberty Mutual, Progressive and Travelers—have managed to grow their customer base in this challenging economic climate, their growth comes at the expense of other insurers in the mature U.S. personal auto insurance market..."

GlassBytes: J.D. Powers: Customer Retention Becomes Critical for P&C Carriers in Current Economy