Will Cheaper Car Insurance Actually Win Consumer Loyalty?

Mercedes-AMG E 53 Coupé (Kraftstoffverbrauch kombiniert: 8,9-8,6 l/100 km, CO2-Emissionen kombiniert: 204-198 g/km), 2020, Outdoor, Vorderansicht, dynamisch, Night Paket, Carbon Paket II, Exterieur: graphitgrau metallic // Mercedes-AMG E 53 Coupé (combined fuel consumption: 8,9-8,6 l/100 km, combined CO2 emissions: 204-198 g/km), 2020, Outdoor, front, dynamic, Night package, Carbon package II, exterior: graphitgrey metallic

Let’s ask that question as the FCA rules regarding price walking loom on the horizon. New research by Ello finds that 44% of consumers admit they’re not loyal to their home, car or life/health insurance providers, with fewer than one in 10 feeling like a valued customer.

When it comes to ranking customer loyalty across various sectors, the data confirmed consumers are least loyal to their insurance provider, when compared to how loyal they are to their telecoms, finance/banking, retail and utilities providers, with supermarkets coming out on top. Although let’s not mistake loyalty when it comes to utilities or banks with people realising that switching banks or electricity companies actually makes no difference when to comes to abysmal customer service or pricing by £25 per year either way.

Ello’s research also solidified the struggles insurers are facing when it comes to customer retention, with just one in ten confessing they have been a customer with their current provider for more than five years. The data also confirmed consumers are typically loyal to their insurance provider for an average of just 3.3 years, spending around £417 per year.


When it comes to looking for better deals on their insurance policies, older consumers are more likely to explore their options than younger – with good customer service, reliability and quality of product/service, along with price, proving to have the biggest impact on their decision to stay with a provider. For younger consumers, reliability, customer service and perks are important too. With individual customer value over five years surpassing £2,000, the research solidified that these factors that should be prioritised by insurance businesses.

This is because older people experience life events, like having their house flooded, being robbed by burglars or being involved in a minor car incident. All of which mean they go through the claims process, which can prompt a desire for better service, not just a cheaper insurance premium price.

The research also revealed that:

·        Three in five consumers admit bad interactions impact their loyalty to a brand and often result in them cutting ties

·        More than one-fifth say they would leave a brand if they engaged in unethical practices

·        A quarter would leave if they found out they mistreated employees (such as not paying them fairly or forcing them to work long hours)

“Our research found that there are a number of reasons a customer would seek out a new provider, including poor customer service, unethical practices, a lack of trust, not offering perks or a single bad interaction. So, it’s crucial to bear all of these in mind and ensure each is prioritised to instil loyalty,” concludes Michael.

To find out more and to download the full report, visit: ellomedia.com/brokering-better-loyalty/.

About alastair walker 11417 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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