As COVID-19 Keeps Americans Off The Road, Auto Insurers Struggle To Adapt
According to a June 2020 McKinsey survey, 62% of respondents said they travel less now than they did before the onset of the COVID-19 pandemic. The same survey also found that car purchasing intent in the U.S. is 26% below pre-COVID-19 levels. It comes as no surprise that the current trajectory has had a significant impact on the car insurance industry.
A J.D. Power Insurance Intelligence report from June shows that with fewer drivers on the road, auto insurers have had to return $10 billion in rebates on premiums for policyholders. Given that consumer satisfaction is a key retention indicator for insurers, it is shocking that the same report found that consumers are, on average, 20% less satisfied with their insurer today, despite the rebates.
What does it take to improve consumer satisfaction and turn things around for the auto insurance industry during market downturns, especially those created by unforeseen global events?
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