Enhancing Client Engagement in Auto and Home Insurance

A recent survey by VIU by HUB highlights that about one-third of home and auto insurance policyholders feel their claims experiences did not meet their expectations, revealing potential opportunities for brokers to enhance client engagement.

The survey, conducted with The Harris Poll, drew responses from 1,663 U.S. adults holding home and auto insurance policies. It found a significant lag in policy updates, with 20% of participants admitting they haven't adjusted their coverage since initial purchase. This is consistent with research from the American Property Casualty Insurance Association (APCIA) that indicates two-thirds of U.S. homes might be underinsured. Moreover, findings from the Insurance Information Institute show that only 30% of insured homeowners have adapted their coverage to meet current needs, reflecting a widespread disconnect in policy maintenance.

Communication Gaps and Financial Vulnerability

The survey points to a notable lack of communication between insurers and policyholders. Eighty-eight percent of respondents expressed a desire to be informed when their coverage requires updates due to life changes, yet 56% reported no proactive contact from their insurers over the past year, and 21% have never been contacted. This gap in engagement could lead to significant financial vulnerability, with 67% of policyholders acknowledging they would struggle to cover an unexpected $1,000 expense.

Such financial pressures underscore the importance of regular coverage assessments. The Hanover Insurance Group's 2026 Home Report supports this, indicating that despite the recognized importance of comprehensive coverage, many policyholders neglect periodic reviews of their policies. This passivity extends to switching providers, with 65% of survey respondents finding it cumbersome to switch insurers for better rates, presenting an opening for brokers to leverage proactive engagement strategies.

The Role of Brokers and Industry Opportunities

Brokers specializing in personal lines can capitalize on this information by focusing outreach efforts around life changes rather than simply at renewal times. Key life events, such as home renovations or changes in household composition, can dramatically alter risk profiles. Brokers who establish client contact during these transitional periods stand to offer more tailored support and potentially mitigate unaddressed risk exposures.

"It's time for customer service in insurance to go beyond responding only when asked for help or when something goes wrong. It should be attentive and thoughtful, proactively reaching out with solutions and guidance."

Actionable Insights for Insurance Professionals

According to Bryan Davis, president of VIU by HUB, the insurance industry must prioritize building stronger client relationships. Service should extend beyond reactive responses, offering proactive solutions that highlight potential coverage gaps before customers need to ask. This proactive approach aligns with VIU by HUB's business model, focusing on embedded insurance distribution with partners like banks and auto manufacturers.

For insurance professionals seeking to refine their approach, consider these key strategies based on the survey findings:

• Proactively initiate policy reviews tied to major life events to address evolving risk exposures.
• Communicate proactively and regularly to keep clients informed about potential coverage updates.
• Address client concerns regarding the inconvenience of switching providers by offering seamless transition processes.
• Invest in relationship-building to enhance trust and customer retention over time.

As the data suggests, integrating these strategies can help bridge the existing gaps in communication and coverage, ultimately leading to improved client satisfaction and business growth for brokers and insurers alike.