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J.D. Power: As Auto Insurance Sales Slow, Carriers Turn to Agents

Amid a second straight year of stagnant auto insurance shopping activity and modest rate increases, auto insurance companies have grown increasingly reliant on great customer service, personalized advice and strong agents to win over their customers. That’s according to the J.D. Power 2017 U.S. Insurance Shopping Study.
May 9, 2017

Amid a second straight year of stagnant auto insurance shopping activity and modest rate increases, auto insurance companies have grown increasingly reliant on great customer service, personalized advice and strong agents to win over their customers. That’s according to the J.D. Power 2017 U.S. Insurance Shopping Study.


With average premiums increasing by a modest 2-3% annually, new insurance shopping rates flat and new customer acquisition rates unchanged, auto insurers are faced with the challenge of resisting commoditization. The study finds that as auto insurers struggle to compete on price, they are being forced to differentiate based on factors such as brand reputation, agent recommendations, product and service to drive new business sales.


The study finds that agents continue to play a key role. Agent recommendations have become an increasingly important driver of customer consideration and quote generation. Shoppers are also increasingly reliant on agent recommendations when considering and quoting insurers, compared to 2015 (a 9- and 10-percentage point increase, respectively). Read more about the J.D. Power study here.

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