Personal lines market share has been transitioning to the price leaders. Not because they have the best price. Because until now there hasn’t been a quality metric for insurance that enabled price vs. quality tradeoffs. Consumers are smart. If they don’t know one option is better, they choose the less expensive option.
ValChoice Makes “Quality” Easy-to-Understand
ValChoice data analytics differentiates the offerings of insurance companies. The fuel-gauge-style-image makes it easy-to-understand and memorable. ValChoice tools enable you and your agents to share this quality message broadly. Now you can market like you have a billion dollar advertising budget, even though you don’t have an advertising budget.
Consumers Pay More for “Quality”
Now that ValChoice has introduced a quality metric, buying behavior is changing. Consumers have proven they will pay more for better quality. Yes, even for insurance.
Has Advertising “Best Price” Run it’s Course?
We believe personal lines is a growth opportunity for high-quality carriers. The companies spending 100’s of millions or even billions of dollars per year on a campaigns promoting “best price” now represent 2/3rds of the personal auto market. However, less than half of shoppers make purchase decisions based on price. For an analysis of the insurance market growth opportunity, read our post, “Tell Your Company Story. Nobody Else Will.“