Only 38% of insurance customers feel appreciated by their insurance company, according to a new study by market research firm Parks Associates.
The study found that only 38% of insurance customers feel that their company rewards their loyalty. The study also found that loyalty rewards, including new products, could convince some customers to switch insurance providers. Nearly 40% of customers surveyed said they would switch providers if another provider offered smart-home products that their current provider did not.
“Devices offered for free drive higher levels of switching, but even the opportunity to purchase devices or receive incentives will drive some switching behavior among insurance customers,” said Chris O’Dell, research analyst for Parks Associates. “Currently, 17% of insured homeowners own at least one anti-theft device, outside of a security system, and only 12% of insured renters own at least one security device. Security devices, especially video-enabled devices, can attract strong interest among customers.”
O’Dell said that offering value-added services enabled by smart devices was an opportunity for insurers to “build up goodwill.”
“Smart products have the potential to mitigate risk for both the homeowner and the insurer, helping to prevent catastrophic damage from fire, flood and more,” he said.
