Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept and close

Description

Description

"Property and casualty insurance is often compulsory, and therefore ownership remains high across auto and homeowners policies. In a quickly changing market that will be affected by D2C (direct-to-consumer) offerings, insurers need to differentiate themselves not only in price, but in overall customer experience."  
- Jennifer White Boehm, Associate Director of Financial Services & Automotive


This report will examine the following areas:

  • Property and casualty insurance ownership
  • Bundling and switching behaviors
  • Attitudes towards property and casualty insurance

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Market overview
          • Top takeaways
            • Insurers have created a discount-hungry consumer and must deal with the ramifications
              • Why wait? Switching can happen at any time
                • Property and casualty insurance doesn’t exist in a vacuum
                  • What it means/what’s next
                  • The Market – What You Need to Know

                    • Net premiums written tops $600 billion for P&C insurance industry
                      • State Farm owns nearly 10% of all P&C insurance policies
                        • Homeowners insurance has increased by nearly 50% in a decade, while renters remains flat
                          • Overwhelming majority of consumers own a car
                          • Market Size

                            • Net premiums written tops $600 billion for P&C insurance industry
                              • Figure 1: P&C insurance industry income analysis, in current dollars, 2014-2018
                            • State Farm owns nearly 10% of all P&C insurance policies
                              • Figure 2: Top 10 writers of property and casualty insurance, by direct premiums written, 2018
                            • Drivers spend over $900 per year to insure their vehicle
                              • Figure 3: Average auto insurance expenditures, in current dollars, 2006-16
                            • Homeowners insurance has increased by nearly 50% in a decade, while renters remains flat
                              • Figure 4: Average premiums for homeowners and renters insurance, in current dollars, 2007-17
                          • Market Factors

                            • Overwhelming majority of consumers own a car
                              • Figure 5: Vehicle ownership, November 2019
                            • Homeownership rate hovers around 65%
                              • Figure 6: Homeownership rate for the US, percent, annual, 2010-2019
                            • Over 60% of renters have moved in the past year
                              • Figure 7: Housing situation, January 2020
                              • Figure 8: Housing situation – net, January 2020
                              • Figure 9: American Family Insurance digital ad, September 2019
                          • P&C Insurance and Tech

                              • Insurers are partnering with tech companies, and consumers are starting to pay attention
                                • Interest in Smart Homes tech
                                  • Figure 10: Smart devices owned or considered, March 2019
                                  • Figure 11: Travelers smart home insurance mailer, March 2019
                                • Consumers want their homes to be secure and comfortable
                                  • Figure 12: Interest in smart home technology, March 2019
                                • Voice Assistants could get louder for P&C insurers
                                  • Figure 13: Smart speaker ownership, September 2019
                                • Consumers are theoretically excited to start using a voice assistant
                                  • Figure 14: Attitudes toward digital voice assistants, September 2019
                                • Consumer Attitudes Toward Technology are generally positive
                                  • Figure 15: Attitudes toward technology, August 2019
                              • Key Players – What You Need to Know

                                • New insurtech: Openly
                                  • Climate change will continue to affect P&C claims
                                    • D2C comes to the insurance market
                                    • What’s Working

                                      • Home telematics company partnering with multiple insurers to gather data
                                        • GEICO could become largest auto insurer by 2022
                                          • New insurtech: Openly launches in two states
                                          • What’s Struggling

                                            • Climate change will continue to affect P&C claims
                                              • CA steps up to combat discrimination in auto insurance
                                              • What to Watch

                                                • D2C comes to the insurance market
                                                  • SoFi Protect
                                                    • Acorns Protect
                                                      • Land Rover Owners Insurance and Tesla Insurance
                                                        • Parametric insurance covers events likely to take place
                                                          • Event-specific insurance caters to to-be-weds
                                                            • Figure 16: Travelers wedding insurance tweet, September 2019
                                                        • The Consumer – What You Need to Know

                                                          • Most US consumers have at least one policy; auto insurance most “popular”
                                                            • Most consumers prefer to keep policies with one insurer
                                                              • Price, customer experience still most important
                                                                • Half of consumers would recommend their P&C insurer
                                                                • Insurance Ownership

                                                                  • Most US consumers have at least one policy; auto insurance most “popular”
                                                                    • Figure 17: Current property and casualty insurance ownership, January 2020
                                                                  • Fewer than half of renters own a renters insurance policy
                                                                    • Figure 18: Current property and casualty insurance ownership, by homeownership status, January 2020
                                                                • Bundling

                                                                  • Most consumers prefer to keep policies with one insurer
                                                                    • Figure 19: Bundling behaviors, January 2020
                                                                    • Figure 20: Liberty Mutual bundling email, December 2019
                                                                    • Figure 21: AAA “Save in three ways” direct mailer, November 2019
                                                                  • Gen Z consumers are the most willing to diversify their providers
                                                                    • Figure 22: Bundling behaviors, by generation, January 2020
                                                                  • Renters are nearly evenly split on the possibility of bundling
                                                                    • Figure 23: Bundling practices, by P&C policy type, January 2020
                                                                • Switching Behaviors

                                                                  • Auto
                                                                    • Nearly a quarter of consumers have switched their auto policy in the last year
                                                                      • Figure 24: Likelihood to switch auto policies, January 2020
                                                                    • Younger consumers are the least loyal to their auto insurer
                                                                      • Figure 25: Likelihood to switch auto policies, by age, January 2020
                                                                    • Home
                                                                      • Switching is slightly less common among property owners
                                                                        • Figure 26: Likelihood to switch home or condo policies, January 2020
                                                                      • 18-34s still chasing the more advantageous price point
                                                                        • Figure 27: Likelihood to switch home or condo policies, January 2020
                                                                        • Figure 28: Nationwide direct mail piece, November 2019
                                                                      • Renters
                                                                        • Nearly 40% of renters are switching their policies bi-annually
                                                                          • Figure 29: Likelihood to switch renters policies, January 2020
                                                                          • Figure 30: USAA digital ad, 2019
                                                                      • Attitudes towards Switching Insurers

                                                                        • Price, customer experience still most important
                                                                          • Figure 31: Leading causes of P&C insurance switching, January 2020
                                                                        • Mobile, online capabilities not considered “switchable” offenses
                                                                          • Figure 32: Motivation to switch due to mobile/online capabilities, by gender and age, January 2020
                                                                      • Usage of P&C Insurance Capabilities

                                                                        • Mobile
                                                                          • Nearly 40% have downloaded their P&C insurer’s app, but age affects downloads
                                                                            • Figure 33: Usage of mobile capabilities through P&C provider, January 2020
                                                                          • Younger consumers are interested in downloading their insurer’s app, but need to be shown why they should
                                                                            • Figure 34: Downloads of P&C insurer’s mobile app, by age, January 2020
                                                                            • Figure 35: Use of mobile capabilities, by age, January 2020
                                                                          • Purchasing behaviors
                                                                            • Low interest in nontraditional providers and processes
                                                                              • Figure 36: Interest in using nontraditional companies or payment methods, January 2020
                                                                            • Smart homes and telematics
                                                                              • Insurers should invest in future use
                                                                                • Figure 37: Interest in telematics or smart home technology, January 2020
                                                                            • Choosing a P&C Insurer

                                                                              • Outside of price, customer service remains most important
                                                                                • Figure 38: Top factors when choosing a P&C insurer, by age and gender, January 2020
                                                                              • Digitization is not a differentiator
                                                                                • Figure 39: Digital factors of P&C insurer selection, by generation, January 2020
                                                                            • Attitudes toward Property and Casualty Insurance

                                                                              • Half of consumers would recommend their P&C insurer
                                                                                • Figure 40: Willingness to recommend auto or homeowners/renters insurer, January 2020
                                                                              • Consumers are willing to share their information for a discount
                                                                                • Figure 41: Attitudes towards data sharing and paying more for a policy, January 2020
                                                                            • Appendix – Data Sources and Abbreviations

                                                                              • Data sources
                                                                                • Consumer survey data
                                                                                  • Direct marketing creative
                                                                                    • Abbreviations and terms
                                                                                      • Abbreviations

                                                                                      This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

                                                                                      • Market

                                                                                        Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

                                                                                      • Consumer

                                                                                        Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

                                                                                      • Brand/Company

                                                                                        Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

                                                                                      • Data

                                                                                        Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

                                                                                      Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                                                                      Trusted by companies. Big and small.

                                                                                      • bell
                                                                                      • boots
                                                                                      • google
                                                                                      • samsung
                                                                                      • allianz
                                                                                      • kelloggs
                                                                                      • walgreens
                                                                                      • redbull
                                                                                      • unilever
                                                                                      • Harvard
                                                                                      • pinterest
                                                                                      • new-york-time