Article at a glance:

Better customer segmentation for European auto insurers

• European consumers increasingly prefer to purchase auto insurance online, a survey finds. This trend makes it harder for traditional insurers to target their customers using conventional approaches and leaves them vulnerable to new, low-cost competitors.
• To thrive, traditional insurers should supplement their current customer segmentation approaches with one based on a better understanding of consumer behavior.
• The survey highlighted the importance of four distinct consumer segments. Traditional insurers might retain and serve their current customers better and target new ones more effectively by tailoring their products, prices, and services to these groups.