The concept of being a customer for life, especially in the highly competitive auto insurance marketplace, seems to be a thing of the past. Some of the highest-performing car insurers in the UK successfully renew more than eight in 10 policyholders, but others manage to retain barely one-third of theirs, according to Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates.
Those statistics are courtesy of J.D. Power’s inaugural study measuring car insurance policyholder satisfaction with their primary insurer. The “2010 UK Auto Insurance Customer Satisfaction Study,” based on responses from 5,036 auto insurance policyholders, indicates that 44% of customers switched insurers during the past 12 months, which represents nearly £3.5 billion in premiums that were up for bid. “It’s clear that focusing on customer retention can bring insurers substantial benefit in reducing costs and boosting profitability,” Bowler says.
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