A trend emerges
As the world continues to change, a trend emerges: the lack of consumer spending paired with the economic uncertainty means that we are living in the age of the customer, with auto insurance carriers looking for ways to adjust.
These auto insurers are voluntarily providing billions of dollars back to customers, working to promote empathy and understanding in times where a reduction in roadway incidents has trended downward.
Where is this refund coming from?
This immense refund stems from traffic, crash and incident reductions due to shelter in place orders previously enacted by the majority of the states. A new study from the University of California, Davis, highlighted that California traffic incidents were cut in half since the stay at home order was issued March 19. One can assume the reduction in traffic, violations and incidents has trended across multiple states.
How carriers are reacting
These carriers are providing money back to customers and are focused on ensuring that, especially in times such as these, money goes back in the pockets of consumers.
Businesses are acting with compassion and looking out for the best interest of their customers. It pays to be empathetic, too. According to Entrepreneur, businesses acting with compassion and empathy typically see increased sales, loyalty, referrals, increased productivity and innovation as well as a competitive advantage.
Customers price shop during tough times
In times of economic hardship, customers will typically begin price shopping to see how they can best save money, only solidifying the importance of carriers portraying themselves as empathetic partners instead of just providers. With overall advertising shifting from a tone perspective as well, consumers are more alert than ever on the companies that are looking out for their best interest.
For insurance carriers focused on retaining customers, now is more important than ever to remain empathetic and keep customers top of mind while pricing high-risk drivers accurately like an expert.
Learn more how carriers can make underwriting more profitable and instantly improve quote to bind ratios during the pandemic by downloading our white paper.