Earlier this year, we shared our research on how the purchase of a personal lines auto policy only had about a 50/50 chance of resulting from the lowest quote. It is great to know that agents understand the value of a particular product and can sell the value as often as the price.
When it comes to homeowners policies, the ratio of selling the higher cost, more valuable product is even more dramatic. With respects to homeowners policies written, only 43% resulted from the carrier with the lowest quote!
Here are the same two charts from the previous post, but with home data:
Besides more value, there is also more elasticity in homeowners quotes. For example, on average the price differential between the lowest and second lowest quote was an increase of 19%. In contrast, homeowners policies saw an 11% increase in the price of the second lowest quote for a total of 21% over the lowest price.
Statistically the data demonstrates that agents are clearly more concerned about value than they are about price. Please do misunderstand, having a competitive price is important. However, you do not have to be the lowest price to win the business.