Did you know? Just one in ten consumers trusts their insurer. Even though insurance is crucial for protecting large investments, our research into brand loyalty shows that only 13% of consumers trust their current preferred provider. On top of that, only 8% have been loyal to their insurer for more than three years. It’s no secret that the rise of price comparison sites is making the insurance industry a challenging sector in which to achieve cut-through and long-term loyalty with customers. But let’s take a closer look at the reasons for customer behaviour in insurance, shall we?
Kristina Singleton
02-06-2025
In 2022, Ello Group carried out a 1000-person survey to better understand consumer loyalty habits surrounding insurance. Our nationwide survey revealed 42% are not loyal to their home, car or life/health insurance providers, even despite Financial Conduct Authority (FCA) regulations to protect loyal customers from paying more year on year.
This is largely due to the current cost-of-living crisis, wherein insurers cannot guarantee reduced costs for loyal customers. This has led to brand-switching becoming commonplace as people seek the most affordable rates to reduce their insurance costs.
In fact:
Close to one in five (17%) said that brands absorbing some of the increasing costs throughout supply chains to help with the rising cost of living would improve their trust in insurers.
While 16% think brands should offer discounts at relevant places to help offset some of the rising cost of living.
And a further 14% said it would help if the brands they purchase from showcased that they listen to/know their customers.
Look, it’s no secret the insurance sector has long struggled with customer retention, and our last two pieces of research have cemented the fact that it's one of the worst performers on the customer loyalty front.
But while things are slowly but surely heading in the right direction, there is plenty that insurers could do to improve customer trust and eventually instil loyalty and retention.
Our data revealed what customers are most interested in when it comes to insurance:
Price (38%)
Good customer service (19%)
Reliability (17%)
Trust (17%)
Quality of product service (16%)
So, whilst price will generally always sway customers’ loyalty, there are ways in which insurance companies can strengthen their relationship with their customers.
Customer loyalty solutions can help insurance companies stand out amongst competitors, offering perks and benefits that can positively impact your customers’ day-to-day lives. Only 5% feel a connection to their existing insurer and are loyal to them, and only 8% believe their current insurer truly understands them as a customer.
However, close to one in ten (8%) would remain loyal if their existing insurer could help them save in other areas, such as dining out, food and drink, plus travel and leisure.
Here at Ello, we work with thousands of companies to offer a whole range of experience-based loyalty and rewards platforms. Our solutions involve dining rewards, entertainment benefits, coffee shop rewards, and cinema rewards, promising endless savings and fun for loyal customers.
Heard of Meerkat Meals? What about Meerkat Movies? Well, we helped Compare the Market create bespoke insurance rewards to boost their engagement. Our solutions allowed families to come together and create lasting memories for so much less, giving customers a genuine reason to engage with Compare the Market in the long term.
Prove to your customers that you understand their wants and needs with a new business strategy. With our experience and advanced tech, we’re well equipped to boost customer loyalty in the insurance industry, so let’s team up and create a solution that works for your organisation. Whether you’re looking to boost customer acquisition or sustain engagement, we’re here to help. Get in touch with our team of customer engagement specialists today.
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