The proportion of motor insurance coverage prospects switching has dropped to 33% from peaks of almost 50% final 12 months whereas residence insurance coverage switching has fallen to 36%, the report The Finish of Churn reveals. Switching charges for over-65s are as little as 27% for residence insurance coverage.
Numbers procuring round have fallen to 72% for motor from highs of 85% and to 70% for residence insurance coverage on common.
Poor claims experiences have develop into a extra vital motive for switching – 13% of residence prospects shifting cite unhealthy claims experiences and eight% of motor insurance coverage say the identical.
They’re additionally vital for staying with their present insurer with 14% of motor and 16% of residence prospects highlighting claims expertise for his or her resolution to not transfer.
Key elements driving the change out there embody the stabilisation of renewal premiums and the elevated significance of service high quality with buyer inertia creating alternatives and challenges for insurers, the report says.
Shopper Intelligence highlights how insurers must compete on worth relatively than value with service excellence, know-how and cross-product and partnership methods essential to constructing loyalty.
Ian Hughes, CEO at Shopper Intelligence, stated: “That is concerning the finish of price-led competitors and the way insurers can create sustainable progress by way of buyer worth, expertise, and innovation.
“For 2026 insurers should pivot from competing on value to creating worth by way of innovation, service excellence and ecosystem growth. Winners might want to get smarter on how they purchase prospects and hold present prospects.”
The report, based mostly on a complete evaluation of UK insurance coverage prospects over greater than a decade reveals value remains to be vital – 47% of motor prospects stated their new coverage was cheaper than renewal whereas 35% of residence prospects value was the first motive to maneuver.
It’s out there at https://www.consumerintelligence.com/end-of-churn-competing-on-value-in-the-new-insurance-landscape
