Las 10 compañías de seguros de automóviles más grandes (Junio de 2022)

Flo de Progressive y Jake de State Farm ahora son nombres familiares. ¿Cómo afecta el valor percibido de las empresas más grandes a las más pequeñas, aunque potencialmente igual de competitivas?

It depends on the industry. In financial services, trust and the ability to connect with the company is critical in instilling confidence in the minds of the consumers. Smaller companies that do not have an easily identifiable spokesperson may not enjoy as widespread acceptance or trust. Eventually, word of mouth and personalized experiences with the smaller company may ease these concerns.

How does market share ownership impact a customer’s perception of quality of service?

In scientific research, it is a known fact that a small percentage of influencers who may be viewed as «informed individuals» have the potential to lead others down a specific path. Many times when a company has a significant market share, consumers believe that existing clientele have superior information about the quality of the good or service. It is for this reason that positive online reviews are highly sought after.

Generally speaking, what is the impact on customer satisfaction after an acquisition and/or consolidation?

Depende de la eficacia de la integración o consolidación. Si todo es fluido y los clientes consideran que la expansión de los servicios ofrecidos es beneficiosa para ellos, estarán muy satisfechos. Por otro lado, si hay contratiempos o interrupciones en el servicio en las primeras etapas de integración, la empresa adquirida o consolidada perderá a sus clientes originales.

Viviendo en esta revolución digital, ¿es necesario que las empresas, como los proveedores de seguros, mantengan agentes localizados y experiencias personalizadas?

No creo que sea necesario mantener agentes locales, pero es importante que la persona en la otra línea o en el chat sea culturalmente sensible. Las experiencias aparentemente personalizadas, ya sea a través de un agente en vivo o inteligencia artificial, son invaluables.

Flo de Progressive y Jake de State Farm ahora son nombres familiares. ¿Cómo afecta el valor percibido de las empresas más grandes a las más pequeñas, aunque potencialmente igual de competitivas?

Las empresas en los EE. UU. gastaron casi $250 mil millones en anuncios en 2020. Cuando se trata de financiar campañas de marketing nacionales, las grandes empresas tienen una clara ventaja sobre sus contrapartes más pequeñas. Esta ventaja de gasto se convierte en una ventaja empresarial cuando los anuncios generan suficiente lealtad a la marca como para que los consumidores estén dispuestos a pagar un precio superior por productos y servicios más reconocibles.

¿Cómo deben los conductores equilibrar la gestión de riesgos y la asequibilidad cuando se trata de un seguro de automóvil?

It’s widely accepted among consumers that market share is a key indicator of competitiveness. It follows that companies with a commanding market share are perceived as offering superior products or services. Consumers are willing to pay more for perceived value. With higher profits comes opportunities to further expand market share. As the cycle repeats, the connection between market share and perceived quality is reinforced.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

En nuestro mundo digital, los consumidores estadounidenses gastaron la friolera de $ 860 mil millones en línea en 2020. ¿Sigue siendo necesario que las empresas ofrezcan personal de ventas personalizado? Por un lado, los consumidores claramente valoran la seguridad, la conveniencia, los precios bajos y la amplia selección disponible en línea. Esto es particularmente cierto cuando las cantidades que se gastan están dentro del presupuesto discrecional de uno. Por otro lado, más de la mitad de los compradores en línea pasan menos de 15 segundos en un sitio web. Cuando las compras son por cantidades sustanciales de dinero, la venta requiere mucho más compromiso de lo que puede ofrecer un sitio web típico. Los vendedores tienen las habilidades necesarias para ayudar a los posibles compradores con sus decisiones de compra.

Flo de Progressive y Jake de State Farm ahora son nombres familiares. ¿Cómo afecta el valor percibido de las empresas más grandes a las más pequeñas, aunque potencialmente igual de competitivas?

La industria de seguros es, naturalmente, muy segmentada. Hay aproximadamente 6000 empresas activas en la industria, pero las 10 empresas más grandes controlan más del 50% de los ingresos por primas. Así que tenemos una industria que tiene algunas empresas muy grandes, como Progressive y State Farm, y numerosas empresas pequeñas. El objetivo del éxito de las empresas más pequeñas no debe ser competir con las grandes empresas, sino encontrar un nicho de mercado y desarrollar una experiencia superior en ese mercado.

The insurance industry is bifurcated into two segments. There are several names used to describe these two segments: standard/specialty, admitted/non-admitted, standard/excess and surplus. I will use the terms standard and specialty. The standard market is characterized by large masses of insureds who have risks that are very similar in nature. This market includes the personal lines of homeowners, automobile, life and health insurance. These are the insurers that the public is familiar with because they advertise to the public heavily with catchy slogans and endearing spokespeople and mascots.

The standard market comprises approximately 90% of the total market’s premiums. The specialty market takes the remaining 10% but is vastly more diverse. Examples of risks insured in the specialty market include commercial property, trucking, shipping, product liability, worker’s compensation and professional liability (e.g., doctors, lawyers, building contractors). This is only a small sample of the types of risks insured in this market that offer ample opportunities for profitability for smaller companies.

Even homeowner’s insurance, for example, provides niche opportunities. Standard market insurers like Progressive and State Farm will only insure single-family residences (up to four units) where the owner/insured lives year-round. They will not insure a vacant house, a seasonal residence or a rental property. Individuals seeking insurance in these situations must go to a specialty insurer.

The specialty market includes a large subdivision where companies don’t even exist! The Lloyd’s insurance marketplace is characterized by syndicates that are just loose affiliations of investors looking to insure risks. Although companies can participate in these syndicates along with individuals, the syndicate itself has a lifespan of only three years before it disbands. The risks insured in this market tend to be very distinct and diverse. Lloyd’s syndicates have, in the past, insured risks as unique and divergent as Bruce Springsteen’s voice, Tina Turner’s legs and the Loch Ness Monster!

There are also opportunities in reinsurance — insuring the insurers! So we can see that the insurance industry is a vast, diverse world with a wide variety of opportunities and markets. The strength of one company’s advertising campaign should not adversely affect a smaller player’s profitability if that player is smart and nimble.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

I would say that insurance companies could reduce their offering of localized agents, but not eliminate them altogether. There is still a large swath of the population that doesn’t have good, reliable internet service. In addition, there are numerous individuals who have good internet service but still are not comfortable with e-commerce.

Los seguros son complicados y, a veces, confusos y, con bastante frecuencia, los clientes potenciales querrán hablar directamente con una persona para explicarles las pólizas antes de estar seguros de que es lo correcto para ellos. El servicio personal también es una característica importante para algunos clientes a medida que construyen una relación con una aseguradora en particular, y alguien que el cliente ha conocido y conoce puede obtener mayor confianza que una persona anónima del centro de llamadas.

No veo que el toque personal en la contratación de seguros desaparezca pronto y creo que las oficinas localizadas seguirán siendo una faceta importante, aunque disminuida, de la distribución y el servicio de pólizas en el futuro previsible.

Flo from Progressive and Jake from State Farm are household names now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?

Larger auto insurers spend enormous sums on advertising to create a positive image and encourage applications. Smaller insurers are unable to match the advertising but offer a similar product and often at competitive prices. Consumers should feel comfortable buying from less well-known auto insurers because they are regulated by the state Department of Insurance.

Their finances are in order, forms and rates approved, in compliance with licensing requirements and backed by the state guaranty fund just like the larger insurers. Just to be on the safe side, visit your state’s Department of Insurance website or call if you have questions about a particular insurer. The regulator can confirm whether the insurer is licensed in the state and may provide information on the number of complaints they have received (a complaint ratio provides the number of complaints divided by premium volume).

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

Tener un agente local para ofrecer una experiencia personalizada es sin duda útil para los miembros de la Generación X y los baby boomers, pero probablemente lo sea menos para los consumidores más jóvenes que se sienten más cómodos en el espacio digital. Este último año ha empujado a muchos de los agentes locales tradicionales a mejorar sus interacciones virtuales, pero muchos consumidores aún prefieren visitar o llamar para hacer preguntas.

Flo de Progressive y Jake de State Farm ya son nombres familiares. ¿Cómo afecta el valor percibido de las empresas más grandes a las más pequeñas, aunque potencialmente igual de competitivas?

Many consumers ​feel comfort from dealing with a «perceived familiar» expert, or in this circumstance, the familiar personality (albeit a «company-created expert»). This is a perceived strength that larger companies with high levels of awareness carry as an advantage that smaller entities in the same industry rarely can match. In categories where there is a constant flow of potential new users, this is a clear competitive advantage.

How does market share ownership impact a customer’s perception of quality of service?

As members of a consumer-driven population, we are drawn to those already perceived as «winners.» In today’s competitive environment, success on any parameter — and «quality of service» is certainly one of those parameters — is a key consumer desire. Therefore, the higher the market share, the higher the impression of the «better» competitor as measured by the size of its customer base in comparison with the rest of the market, and this is measured by its share of the market.

Generally speaking, what is the impact on customer satisfaction after an acquisition and/or consolidation?

While companies desire to raise the level of consumer satisfaction, it is my understanding that cuts in budgets to create the «savings» anticipated by consolidations of functions never reach those levels, and resulting customer satisfaction tends to the opposite.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

Históricamente, la mayoría de los seguros se han vendido y atendido a través de agentes locales, y esas relaciones locales fueron un componente clave en ese proceso. A medida que la revolución digital continúa impactando nuestras vidas, más y más procesos «tradicionales» están siendo reemplazados por soluciones digitales. Esto está ocurriendo en más y más industrias que tradicionalmente se manejan a través de interacciones cara a cara, incluidas la banca, las compras de automóviles y viviendas, y prácticamente todas las industrias de consumo. Las compañías de seguros, si quieren mantenerse y crecer en el futuro, muy probablemente tendrán que adoptar este nuevo paradigma o [arriesgarse a ver] una revolución de nuevos competidores como ha ocurrido en tantos negocios centrados en el consumidor.

Flo from Progressive and Jake from State Farm are household names now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?

It comes down to familiarity and branding. Insurance is a credence- or experience-attribute service. This means that it is difficult for a consumer to really know if a service provider (i.e., an insurance company) provides quality service or not. If you have an accident and you are satisfied with the way the firm handled your claim, you assume you received quality service, but you can’t really know for certain.

It is very difficult to determine prior to an experience if an insurance provider delivers value. This is where branding comes in for firms like Progressive and State Farm. We don’t see an insurance provider; we see Flo and Jake. Flo and Jake are our «friends,» and we value what our friends say. We «know» the value is better because our trusted friend said so.

The use of persona branding (and integrated marketing communications) not only allows familiarity for consumers — it also creates less price sensitivity for consumers. Many consumers are able and willing to pay a slightly higher premium for the assurance of quality service delivery if and when the insurance coverage becomes needed.

How does market share ownership impact a customer’s perception of quality of service?

It’s about perceptions. It can be summed up in one statement: «If a firm is larger with greater market share, more people must trust the firm, so I can trust it too.»

Generally speaking, what is the impact on customer satisfaction after an acquisition and/or consolidation?

Generally speaking, it can be two-fold. It may spark consumer «shopping» for other insurance options, or it could solidify satisfaction. It comes down to the reputation of the acquired/consolidated firm.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

Esa es una pregunta muy interesante. Se necesita un equilibrio que permita a los clientes interactuar en línea para preguntas y búsquedas básicas; sin embargo, los agentes son fundamentales para establecer relaciones, sugerir ofertas de servicios adecuadas y hablar con los clientes después de un accidente.

La educación sobre seguros, o la capacidad de comprender completamente el mercado de seguros, varía entre los clientes. Actualmente, los consumidores no son tan expertos en seguros como se necesita para tener procesos completamente automatizados. Mirando hacia el futuro, esto podría cambiar. El mayor uso de la inteligencia artificial (es decir, avatares que interactúan con los clientes en línea como lo haría un agente de la vida real) puede cambiar la necesidad de agentes localizados en el futuro.

Flo de Progressive y Jake de State Farm ahora son nombres familiares. ¿Cómo afecta el valor percibido de las empresas más grandes a las más pequeñas, aunque potencialmente igual de competitivas?

The perceived value of larger companies can have an impact on smaller companies primarily in the areas of satisfaction guarantees and customer service. In other words, larger companies who are able to invest more dollars in advertising messaging, like with Progressive and «Flo» or State Farm and «Jake,» are able to reinforce their value propositions in ways that prompt consumers to perceive a higher likelihood of realizing brand satisfaction. Well-known brands become assets that achieve reliable, ongoing sales volume resulting from the perception that risk in choosing such brands is low.

How does market share ownership impact a customer’s perception of quality of service?

Higher market share is the result of the combination of four factors. Stronger brand preference combined with greater resistance to compromise (more willingness to search for the brand) drives market share by creating «pull.» Likewise, greater availability and in-market visibility combine to create «push.» This combination of push-pull factors creates market share, and higher market share enables the firm to gain leverage over channel partners, thus resulting in even greater availability and in-market visibility.

This cycle is important in the context of understanding that a high market share means your brand has greater in-market visibility. The result is a higher likelihood that your brand will be chosen. This trial, combined with meeting or exceeding customer expectations, leads to repeat purchases and ultimately high brand loyalty rates. So, high market share triggers the notion that the brand must be of high quality, otherwise why would so many people be willing to purchase the product?

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

On the surface, it might appear that insurance company providers need localized agents less due to digital interface solutions. In other words, consumers can transact more easily and with less anxiety within digital and web-based platforms than through high-pressure sales presentations. However, with that said, consumers still need a level of customization when it comes to purchasing insurance products.

Como resultado, los proveedores de seguros que utilizan el toque humano pueden abordar más fácilmente las necesidades de los consumidores y lograr tasas de cierre de ventas más altas. El seguro se considera un producto de alto involucramiento, lo que significa que existe una mayor disposición para recabar información y buscar alternativas de solución. Los agentes localizados y la atención personalizada en términos de la experiencia del cliente pueden contribuir en gran medida a que el prospecto indeciso salga de la valla y lo involucre en la transacción.

P: Flo de Progressive y Jake de State Farm ahora son nombres familiares. ¿Cómo afecta el valor percibido de las empresas más grandes a las más pequeñas, aunque potencialmente igual de competitivas?

Los personajes y el valor percibido juegan dos papeles diferentes.

I will try to address the perceived value. Larger companies will have higher value. It’s a no-brainer. So the problem for smaller companies here is that the larger companies are always top-of-mind for the consumer and hold a bigger market share. So it has a huge negative impact on the smaller startups. But, at the same time, these new entrants have multiple benefits: federally supported funds, getting something new to the market, flexibility in adapting to customer needs as they are not yet fully grown, freshly done market research, etc.

These benefits can be fully supportive of new entrants to increase their perceived value as they can serve the customer in the best way possible while making their entry. A recent example of a new entrant is an app called Avail, which rents out your car while you’re out of town. The app provides customers with free car washes and free parking while they are traveling. Who would not see value in that?

How does market share ownership impact a customer’s perception of quality of service?

The more users, the more diversified the opinions. You can’t please everyone who is your customer. Opinions about market share ownership, like monopolies, are usually diversified.

For example:

These two examples explain the fact that market share ownership does get love and hatred together, but due to the huge market share, customers don’t have a choice and are wary of switching to new products, regardless of a high dislike sometimes.

Generally speaking, what is the impact on customer satisfaction after an acquisition and/or consolidation?

The customers most times are not aware of the acquisitions taking place between companies. For example, last week, Redbox merged with Seaport Global. It’s not very attention-seeking. Certainly if there are bigger acquisitions, covered well by the media, like the merging of WarnerMedia and Discovery, then there is awareness. But impact? Not so much.

Would you stop watching Discovery because the company merged with WarnerMedia? If this merger had an impact on subscription rates, then it may be a different story. Some merger decisions may eventually impact consumers, but it is those decisions — and not the news of the mergers themselves — that impact customer satisfaction.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

The question here should be «how» not «if.» Because there is no other way but to have that personalized experience. Digitizing means people are naturally getting isolated and working in their own dens, and thus, loneliness is kicking in. In such circumstances, having the best digital service is great. The customer will certainly like it, regardless of digital service. But if there is a live agent, unconsciously, they will feel more welcomed, more engaged and part of the company community.

Hoy, dar una experiencia personalizada es lo que te puede diferenciar de la competencia. Es un deber. Ejemplo simple: si se está mudando a Michigan y un asistente de una compañía hipotecaria está hablando con usted en línea pero no sabe dónde se encuentra, es posible que su confianza con la compañía no sea la misma que si el mismo agente le dijera que es un local de la zona a la que te mudas. Eso te da un sentimiento personalizado, un vínculo, y un sentimiento de pertenencia a la comunidad.

Flo de Progressive y Jake de State Farm ahora son nombres familiares. ¿Cómo afecta el valor percibido de las empresas más grandes a las más pequeñas, aunque potencialmente igual de competitivas?

In my opinion the marketing personas, so to speak, that brands create are a move toward making the company seem more approachable, relatable and down to earth — all qualities that small and successful companies possess inherently. Flo, Jake and other spokes-characters have proven to be effective tools to promote products and services and to bring in new customers.

That said, retention is key. If the service provided once a new customer signs on is not up to their standards, many consumers will pivot — almost automatically — to doing business with a smaller company.

This poses a challenge, as well as an opportunity, for those smaller outfits, who must position themselves as visible to consumers with creative marketing of their own. This could include a larger-than-life character (who is also a real leader in the company, as opposed to fiction), but above all should focus on the points of service customers can expect to receive with low or no failure for an extended period of time.

How does market share ownership impact a customer’s perception of quality of service?

As a small community college serving a rural area, we struggle with the balance of advertising spread. Our budget is smaller than some neighboring colleges that can pursue larger and longer campaigns, and that affects the perception of the institution — area residents sometimes assume the larger colleges are more well-heeled, accessible or program-rich.

However, wide-reaching campaigns in our region can also be read as overexposure or overspending. We pay great attention to our demographic and geographic targets to help combat this — delivering marketing materials to core audiences as often as possible — and also working with community partners to create unique, attention-getting «splashes» throughout the year that demand attention, but don’t suggest grandiosity. Some examples include «carvertising» on delivery-service cars, QR-code powered brochures to pair digital and print pieces and sponsorships of events that are reflective of our community’s flair, such as art festivals, agricultural fairs and theater productions.

Generally speaking, what is the impact on customer satisfaction after an acquisition and/or consolidation?

Name changes or announcements of company changes of any kind often foster anxiety among consumers, who may adopt a newly cynical view of the company in question or worry their service will change or decline in quality. The impetus is on the company to double down on its customer service and pay attention to any developing trends of dissatisfaction among its customer base.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

Si bien no es intrínsecamente necesario, el acceso local al servicio es siempre una ventaja y un aspecto importante del servicio a promover. Las experiencias personalizadas siempre deben ser parte del marketing y el alcance del cliente, ya sea que se brinden desde lejos o desde el otro lado de la calle. Este mundo digital, especialmente después de la pandemia, ha creado una necesidad entre muchos consumidores de experiencias humanas reales. La buena noticia es que los recursos digitales hacen que la personalización sea más fácil que nunca, pero a veces, todo lo que se necesita es también una llamada telefónica personal.

Flo de Progressive y Jake de State Farm ahora son nombres familiares. ¿Cómo afecta el valor percibido de las empresas más grandes a las más pequeñas, aunque potencialmente igual de competitivas?

Customers recognize familiar faces and companies. Flo and Jake are two of many recognized faces in the country. When Progressive and State Farm create ads with these icons, they also create a customer base of «satisfied customers.» Since their ads portray satisfied customers, potential customers are more inspired and persuaded to switch from their current insurance and become a customer of Progressive and/or State Farm.

The assumed «100% guarantee» builds a 100% «satisfactory» value that smaller, competitive companies are challenged to match. Customers are so used to watching persuasive ads and promotions that they disregard smaller companies and assume that smaller companies do not provide the same level of satisfaction. In turn, smaller insurance companies struggle to gain new customers and subscribers. Smaller companies seem to be already labeled as «unsatisfactory» without being given a chance.

This marketing strategy is one that is being employed in almost all industries and institutions. At Rutgers Business School, we have our own Flo and Jake to compete with. Renowned clubs like LIBOR (Little Investment Bankers of Rutgers), QFC (Quantitative Finance Club) and many others dominate in attracting new members and provide a perception of «Join us and you will be guaranteed a successful future.»

A new and much smaller club like Rutgers Insurance Club needs to show it provides just as much value as the big shots, if not more. To do that, a new club needs to attract members and strategize how to retain its members. To reach the same playing field, smaller companies need to seize each and every opportunity they get to increase their value and customer base.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

The digital revolution has been a blessing and curse for almost all industries, including insurance. Technological advances have allowed companies to reach out globally without leaving a desk. While technology allows insurance companies to build their organization in new ways, it is just as important to maintain positive relationships with localized customers and stakeholders.

En cuanto a los agentes localizados, es importante que las empresas contraten a personas que puedan ayudar a los clientes en el lugar. Las experiencias personalizadas permiten que los clientes y las personas interactúen con los agentes y tengan más libertad para conocer la empresa. Un agente representa a su empresa y, por lo tanto, ilustra los valores y la moral que tiene una empresa. Alguien por teléfono o en una videollamada no podrá representar los estándares de la empresa de la misma manera.

Al final del día, los clientes son personas y las personas necesitan interactuar con otras personas. Los agentes de seguros, o cualquier agente, deben existir mientras una empresa quiera un futuro.