The 2 reasons members switch insurance

In any given year, most of your membership will need some combination of home and auto insurance—80% is typically seen as a logical estimate. That stat might create the impression that home and auto insurance is a huge opportunity for your credit union. But the reality is more nuanced.

That 80% includes almost no new market share—research from J.D. Power reports just 2-3% of new customers enter the auto insurance market each year.1 This means growing your credit union’s insurance business typically requires you to take customers away from a competitor.

How likely is that? Let’s take a closer look.

First, what’s the potential to gain for market share?

How many of your members are likely to switch their insurance? J.D. Powers reports that in 2019, for every 100 auto protection policies, 33 policyowners investigated new insurance options. But of those 33 policy owners, just 35% actually went on to make a switch.1

 

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