Traditional home insurers appear to be in need of an image change, and that, in turn, could create a big opportunity for insurtech startups, according to the latest J.D. Power U.S. Home Insurance study.
Approximately 74 percent of their customers surveyed said that the industry needs some improvement, with 13 percent suggesting the sector needs “radical improvement.” As well, overall customer satisfaction with home insurance declined for the first time since 2015.
According to the survey, products and coverage; underwriting; and claims are the points in homeowners insurance with the greatest perceived need for improvement. That means insurtech competitors are nipping at the heels of their carrier competitors. The J.D. Power study points out that insurtech startups “have been increasingly active in creating alternatives to the traditional offerings in these areas.”