Case Study 01

Helping Customers Navigate Premium Increases

Overview

Auto insurance premiums can fluctuate based on a variety of factors. Raising insurance rates is a decision that supports business realities, but it rarely results in a good customer experience.

This research explored the perceptions and impacts of premium changes and led to actionable recommendations about how to communicate about premium changes more effectively in the future.

The

Problem

A national auto insurance company needed to understand how to improve the customer experience around premium changes.

  • We needed to understand how customers understood the rate increases they experienced, what that meant for brand perception, and how we could do a better job of communicating rate changes in the future. 

  • We also needed to help business partners across the organization understand that rate changes have real consequences for customer experience. 

  • Finally, we wanted to inform actionable next steps for internal business partners, including improved, customer-centric language, and resources for insurance agents to use when speaking with their customers.

Research

Methods

This research utilized a mixed-method, multi-phase approach.*

Phase I (qualitative): in-depth interviews and design thinking

  • IA: In-home interviews in two key markets (Atlanta and Chicago); 15 participants total

    • Interviews explored customers’ recent experiences with an increase in their auto insurance premiums, how they interpreted the documents they received from their insurance provider, how they understood the causes of the premium increase, and examples of companies that have communicated about rate changes in an effective and compassionate way

  • IB: On-site co-creation workshop with Chicago in-home research participants and business partners (1:1 ratio of research participants and business partners)

    • In-home research participants worked with business partners on a series of design thinking activities that helped them articulate their experiences and express their preferences for better communication about rate changes in the future

Phase II (quantitative): customer survey

  • After analyzing outcomes from Phase Ia and Ib, we launched a survey to test workshop ideas and prioritize potential solutions

Phase III (qualitative): focus groups

  • After further iteration, we took refined solutions to a series of three focus groups to elicit additional customer feedback

    *Survey research was conducted in collaboration with quantitative research partners.

Research

Outcomes

This research resulted in a better understanding of a previously-ignored aspect of the customer experience, helped stakeholders build empathy with customers, and contributed to actionable solutions for multiple business areas.

Recommendations included:

  • Improvements to customer-facing communications, including layout and wording, for both print and digital documents

  • Better resources for insurance agents to help explain rate changes to their customers

  • Timelines for communicating news about rate increases