The proportion of motor insurance coverage prospects switching has dropped to 33% from peaks of almost 50% final yr whereas dwelling 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 dwelling insurance coverage.
Numbers purchasing round have fallen to 72% for motor from highs of 85% and to 70% for dwelling insurance coverage on common.
Poor claims experiences have change into a extra vital motive for switching – 13% of dwelling prospects transferring 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 dwelling prospects highlighting claims expertise for his or her determination to not transfer.
Key elements driving the change out there embrace 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, expertise 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 development via buyer worth, expertise, and innovation.
“For 2026 insurers should pivot from competing on value to creating worth via innovation, service excellence and ecosystem improvement. Winners might want to get smarter on how they purchase prospects and preserve 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 dwelling 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