The insurance industry is highly competitive, with most firms competing on price and the quality of services. The positive thing we’re seeing is that most consumers have an overall good relationship with their insurance provider. Most of their insurance needs are being met and they plan to stick with their provider for the foreseeable future.
Across the board, consumers have an above-average satisfaction level with their insurance provider. The largest group with higher satisfaction levels is millennials (under age 45). This is interesting since insurance premiums are usually higher on average for younger age groups. Our findings also substantiate the NPS® score of insurance companies from powersport consumers. This score is widely used in market research to determine the likelihood a customer will recommend a product to a friend or colleague. We found that Gen-X consumers are the most likely to be “promoters” of their insurance provider, more so than Millennials and Boomers.
The opportunity for insurance providers is to capture the “passive” consumers and turn them into promoters. Insurance companies can do this by directing more communication resources at targeting passives, providing consistent customer experiences, demonstrating products and services, and listening to customer feedback. We found that millennials are the largest group of passive consumers. Therefore, insurance companies have an opportunity to capture this age group for future success.