What: According to the J.D. Power 2022 US Home Insurance StudySM, the rapid rise in auto insurance premiums is causing many personal lines customers to unbundle their home and auto. This is a market that has historically been less sensitive to rate increases, but this recent spike is changing that.
Why it matters: Profit pressure is challenging the concept of the personal lines bundle which is where carriers have been competing for years. This sector has long been the one carriers rely on for good customer lifetime value because of it’s stability.
This is likely going to result in more churn for companies that have historically relied on bundling. Could be an interesting opening for new companies to break into these markets that have been locked up for some time.
Read: High Insurance Premiums Hurting Product Bundling