U.S. auto insurance companies are spending more money to entice consumers, but without apparent effect, notes the J.D. Power and Associates 2012 U.S. Insurance Shopping Study released on Apr. 30.
Now in its sixth year, the study examines consumer shopping and purchasing behaviors and overall satisfaction among buyers who recently purchased insurance across three factors: distribution channel, policy offerings and price.
The study found only one-quarter of auto insurance customers shopped for a new policy in 2011.
Customer retention rates are increasing at a time when auto insurance companies are spending more money to entice customers to switch insurers, said Jeremy Bowler, senior director of the global insurance practice at J.D. Power and Associates.
Industry-wide, advertising expenditures in the United States increased by 12% last year, based on an analysis of statutory filings data for 2011 performed by Dowling and Partners LLC.
“The industry spent $5.7 billion on advertising and allowances in 2011, but this increased spend does not appear to have generated a commensurate increase in market churn,” Bowler said.