Property and casualty insurers can have a tough time connecting with their customers.
Insurance is a low-touch business. Most consumers purchase an insurance product only every three to six years. In developed markets, just half of customers have had any contact with their insurers for any reason in the past 12 months. It's hard to foster loyalty under such circumstances.
Insurers can find themselves in a situation where their customers don't love them, don't appreciate them and don't stay with them. Because customers don't discern much difference between insurers, companies end up competing largely on price, and that can lead to a downward spiral of cost-cutting, profit erosion and customer churn. In a word, commoditization.
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