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Study: Insurers’ Customer Retention Critical in Hard Economic Times
As millions of U.S. households face financial hardship in the current U.S. recession, retaining existing customers has never been more important.
For insurance carriers in terms of long-term profitability, customer retention is tops, according to the J.D. Power and Associates 2009 Personal Insurance Retention Special Report.
The report finds that in the past 12 months, 30 percent of households with annual incomes below $50,000 shopped for a new insurance carrier and 45 percent of those customers eventually switched carriers. In contrast, only 26 percent of more affluent households (those with incomes of $100,000 or more) shopped for a new carrier, with only 31 percent of shoppers eventually switching.
