Car Insurance industry : Final nails in the coffin?

The European car insurance market generates 130.8bn in premiums with 1.3bn underwriting profit. At the same time, the major players have some of the lowest Net Promoter Score (NPS) ratings of any industry, meaning the companies do not inspire satisfaction or loyalty in their customers. Overall high acquisition cost, low engagement, no brand loyalty and high cost of retention among young people and new trends like car sharing, self driven cars are putting huge pressures to the car insurance industry. The current young generation is extremely price sensitive but at the same time brand conscious. To penetrate this market a company has to either give very good price or sell value with a strong brand association.