Study
Insurance

U.S. Auto Insurance LoyaltyIQ  

The Auto Insurance LoyaltyIQ provides an unparalleled view of customer loyalty in personal lines auto insurance for the top 50 insurance companies in the United States. The product tracks loyalty among 100,000 consumers by measuring their recent shopping and switching behavior. In addition to providing a robust set of insurers from which to benchmark performance, the product provides a deeper dive into the brands that are not profiled in the J.D. Power U.S. Insurance Shopping Study.SM

Access to this information allows insurance companies to better understand which customers are shopping and which ones are not shopping; which geographical markets customers are shopping in; and customer awareness and perceptions of and attitudes toward auto insurance companies.

Customer-reported behavior is measured both quarterly and annually, allowing subscribers of the product to track both near-term and long-term loyalty behavior. Additionally, subscribers can compare up to 3 years of customer loyalty behavior, allowing for year-over-year trends and quarterly trends in a given year as well as quarterly trends across years.

While customer loyalty is relatively stable at an industry level from one year to the next, previous research conducted by J.D. Power has shown that loyalty varies significantly for individual insurance companies and within various customer segments. Core analyses that help insurance companies better understand these dynamics include:

  • Benchmarks for the top 50 insurance companies: What are the retention, shopping, and switching rates for my company and how do they compare to my key competitors? Is my company losing fewer or more customers than competitors?
  • Generation: What is the shopping rate among Gen Y customers? Do they defect at a higher rate than Gen X? Has this changed in the past year?
  • Income: Has retention changed from last year among higher income households?
  • Local market (ZIP code, state, and region): How do my company’s customer shopping rates compare in California vs. Texas, for example?
  • Product bundling: What is the rate of switching among auto and home bundlers? How does my company’s performance compare to competitors?
  • Attitudes and perceptions of auto insurance: Does my company have more customers who identify as technology averse? How does this impact loyalty in my book of business?