Auto Insurers Double Down on Ads and Digital Investment as Shopping Stagnates, J.D. Power Finds

By a News Reporter-Staff News Editor at Insurance Weekly News -- There's never been a more competitive environment for auto insurers in the battle to win and retain business. According to the J.D. Power 2018 U.S. Insurance Shopping Study,SM released, a combination of record-low volumes of new insurance shoppers, consistent price competition among insurers and emerging "insurtech" disruptors on the horizon have forced auto insurers into aggressive customer courtship mode. With less differentiation in the marketplace, insurers are investing heavily in new digital capabilities to improve the insurance shopping process and in national advertising to build their brands.

"We're entering an era of consumer-centric insurance that will likely be marked by a surge in new digital offerings and serious efforts by insurers to improve the auto insurance shopping experience," said Tom Super, Director of the Property and Casualty Insurance Practice at J.D. Power. "Auto insurers looking to differentiate and win new customers are making big bets with digital-such as in personalization-that meet customers' growing expectations for improved interactions."

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