J.D. Power releases data on insurance customer loyalty

New report provides an overview of auto insurance shopping and loyalty behavior

J.D. Power releases data on insurance customer loyalty

Insurance News

By Ryan Smith

J.D. Power has announced the publication of its quarterly loyalty indicator and shopping trends (LIST) report.

The report, conducted in partnership with TransUnion, provides an overview of auto insurance shopping and loyalty behavior.

According to data from the first quarter of 2023, auto insurance shopping is increasing. The overall quarterly quote rate for the first quarter was 12.4%, up from 12.1% in Q4 2022.

The LIST report found that a slowdown in insurance shopping hit in December and lasted into January before making a dramatic turnaround in February, rising from 11.6% to 12.6%.

Shopping spiked even higher in March, rising to 13.1% – a new record for the data series, J.D. Power said. The report noted that insurance shopping tends to be higher in April, so this month may see the record surpassed again.

Quarterly quote rates increased across three out of four US regions:

  • Northeast: from 9.9% in Q4 2022 to 10% in Q1 2023
  • Midwest: from 11.4% in Q4 2022 to 11.8% in A1 2023
  • South: from 13.1% in Q4 2022 to 13.8% in Q1 2023
  • West: from 12.4% in Q4 2022 to 12.2% in Q1 2023

The overall switch rate stayed strong at 3.9%, down slightly from 4.1% in Q4.

“Last month’s report described how the industry is in a difficult position: it’s facing intense cost pressures and, in some areas, an inability to raise rates, and less money to spend on advertising,” J.D. Power said. “Some are closing acquisition channels. All of this comes as consumers may be financially stressed or constrained.”

The report showed a significant shift in the top three personal lines carriers in the US, with Progressive overtaking GEICO to become the second-largest personal lines writer after State Farm. This is also the first quarter in the series in which GEICO has not captured the largest share of customers defecting from other insurers.

Insurance companies Erie, Amica, USAA, NJM and MAPFRE all saw increasing customer loyalty in Q1, while COUNTRY, National General, GEICO, Progressive and Kemper all saw loyalty fall.

J.D. Power recently ranked Erie Insurance number one among property and casualty insurers for customer satisfaction. Erie also took the top spot among personal lines insurers.

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