Prepared for John P. | Delivered May 20, 2020
Auto Insurance Buyers
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To provide information about the different segments of insurance buyers in the public domain. This will help build a new market strategy for the auto insurance industry.
Auto Insurance: Consumer Segments
According to auto insurance research conducted by
, there are
high-level auto insurance buyer segments. The segmentation of the buyers is based on
customer needs and behavior
The nine segments include;
: This category of buyers prefer the advice of a local agent representing multiple carriers, and they tend to follow the advice of agents. They are not price-sensitive.
: The uninvolved category is primarily defined by their lack of preference and shows no concerns towards auto insurance. They do not desire advice, convenience, or brand.
: The low-price experts make decisions based on the ability to get the lowest price, and they are willing to reduce coverage and compromise on brand and convenience.
: The active shoppers promptly research their options, desire information, and advice, and tend to shop frequently. They are said to be
conscious about price and make tradeoffs between insurance coverages.
: They put convenience first and expect multichannel access. They also do not value having an agent, and their propensity to shop and price sensitivity is above-average.
Price-conscious advice hunters
: This category of buyers is less loyal, wants personalized advice, has a
31% shopping tendency
, and is low-cost-biased towards stronger brands.
High-touch protection seekers
: This category of consumers is in search of extra protection and tailored coverage options. They also desire a strong brand, want multichannel convenience, and are willing to pay for expectations.
Affinity-oriented brand buyers
: This type of consumer wants a strong, well-known, and established brands and are not interested in any intimacy with a local agent. They also do not desire to research options or actively shop/switch.
Branded agent loyalists
: This category wants both a local agent and a strong brand and is biased about the exclusive agent channel. They are known to be loyalists, with
of them staying more than
giving then the lowest reported shopping and switching rates.