Customer churn rates within the insurance industry stand at 17.8% per annum, according to research conducted by Group 1 Software in July.
This compares well against a cross-industry average of 19.1% and places the insurance industry mid-table, with telecoms are at the top.
The research indicates that the UK consumer is becoming more mobile and that companies' retention strategies need to improve to deal with this change.
Andrew Greenyer, director of Marketing EMEA, Group 1 Software, said: "Although general insurance averages at much the same level of churn as banking, this figure hides a wide polarisation of individual company churn
rates – ranging as widely as 5% in some cases to 40% in others.
"The industry remains still largely intermediated – through traditional brokers and IFAs, but also non-traditional resellers such as supermarkets, estate agents and product vendors. So the burden of stemming customer defection is in large part focused on support for the reseller channel."
