Are Quebecers loyal insurance customers?
According to a study commissioned by AXA, more than half of Quebecers think only occasionally or rarely of shopping around for their automobile and home insurance. However, when they decide to do so, they are willing to switch insurers for a 10 to 20% discount on their premiums.
Consumer behaviour, purchase triggers, shopping habits, client profiles-these are only some of the subjects regularly examined by AXA in its surveys of its insureds.
"Every other year, we carry out a study to better understand Quebecers’ preferences and shopping habits regarding automobile and home insurance," said Richard Taschereau, Vice President, Sales, Marketing and External Communications, Property/Casualty Insurance, at AXA, in a press release. "Using the data collected, we can meet insureds’ expectations based on their profiles."
AXA said the premium is the deciding factor when choosing an auto or home insurance policy. A quarter of the insureds surveyed consider it worthwhile to switch insurers in order to obtain a discount of less than 10% on their auto premium. But for half of them, a discount between 10% and 20% is all it would take to get them to look elsewhere. Younger insureds are the most price-sensitive and least loyal to their insurer. They are also more likely to shop around and to contact several suppliers.
Other interesting findings: in automobile insurance, the ease with which the insurer can be reached is a criterion often taken into account by all insureds, while a recommendation from a third party is not a contributing factor to their decision to purchase. In home insurance, the offered advantages and services can tip the balance, assuming the premiums are comparable. Insureds who buy their insurance through a broker are less likely than others (10% difference) to switch insurers in order to obtain a better rate. For more than half of insureds, brokers are the best source of advice because they are seen as offering better services and products and being more accessible. Many insureds also feel that they obtain a better rate of better quality-price ratio from a broker. When it comes to information about automobile insurance, more than 60% of respondents said they obtained it from two or three suppliers.
Although the Web is an increasingly popular tool for comparing rates, 79% of insureds continue to use the telephone to contact a supplier and purchase an auto insurance policy. The Internet is used for performing background research before making a telephone call by 6% of insureds, and only 7% of insureds use the Web for the entire process, from start to finish. Not surprisingly, this latter group consists mainly of young adults.
Bundling their automobile and home policies is a natural choice for insureds. For 78% of them, buying their auto and home insurance from the same insurer is the sensible thing to do. The reasons given include the discount obtained (65%) or because it’s simpler (12%). When insureds don’t pair their policies, it’s because they’ve found a better rate for one of them from another supplier (18%).
