In addition, helping consumers find more “value-for-money” with their policies can be an effective cross-selling opportunity to help insurance companies boost brand awareness, enhance retention levels, and drive repeat business.
Capco, a global technology and digital consultancy, surveyed just over 2,000 U.S. consumers to gauge their impressions of insurance products and providers to capture public attitudes toward consumer insurance, the key products and services used, and emerging trends. The results form part of a larger survey of some 14,000 consumers across 13 markets globally.
Four key themes emerge from a preliminary top-line analysis of the U.S. survey findings:
1. Strong demand for apps across all generations outside of Baby Boomers.
- 70% of Gen Y-aged policy holders surveyed (25-34) would use an app that provides personalized insights and gives them better visibility of all their financial products (bank accounts, retirement plans, insurance policies).
- Conversely, only 8% of the respondents in this Gen Y cohort are already using such an app.
- Gen Z (18-24s) and Xennials (35-44s) have similar demands of integration of protection and wealth products.
2. Opportunity to achieve greater personalization via the exchange of personal data.
- Almost half of Gen Z (47%) and Gen Y (40%) policyholders surveyed would share their home smart device data with an insurer.
- Leveraging this exchange could be an effective way to help the uninsured become covered.
- The top reason uninsured respondents do not have insurance is because ‘premiums are expensive’ (44%), not because they do not see the value of insurance.
3. ‘Value-for-money’ top decision-making factor for buying insurance.
- Survey respondents see ‘value-for-money’ as the top decision-making factor when buying insurance (34%). This was the top reason for all ages of respondents surveyed.
- As shoppers across all insurance product lines hunt for the best deal, the need for dynamic, flexible, and personalized insurance products becomes more paramount.
4. Maintaining/boosting trust key to growing and maintain customer relationships.
- Most policyholders report no change in the level of trust (59%), nor concern, since the onset of the COVID-19 pandemic.
- However, 41% of respondents are doubtful about their existing level of insurance protection in the wake of the pandemic.
- This suggests insurers could be doing more to reassure customers through this continued period of uncertainty.
Ernst Renner, Partner & US Head of Insurance at Capco, said:
“The power of digitalization has increased the demand for immediate satisfaction. Consumers don’t want to submit information and wait for a decision or provide a call-back number for a customer representative to get back to them; they want the answers right away so online systems (websites or apps) and call center operators must be enabled with the information for immediate responses. While the pandemic pushed many insurers to make strides in how they digitally engage with customers, our research shows that there’s still plenty of work to be done.”
Capco is a global technology and management consultancy specializing in driving digital transformation in the financial services industry. With a growing client portfolio comprising of over 100 global organizations, Capco operates at the intersection of business and technology by combining innovative thinking with unrivalled industry knowledge to fast-track digital initiatives for banking and payments, capital markets, wealth and asset management, insurance, and the energy sector. Capco’s cutting-edge ingenuity is brought to life through its Innovation Labs, and award-winning Be Yourself At Work culture and diverse talent. To learn more, visit www.capco.com or follow us on Twitter, Facebook, YouTube, LinkedIn Instagram, and Xing.
The survey was conducted online in April and May 2021 and collected responses from 2002 U.S. individuals and a total of 13,798 respondents globally. The markets surveyed were the UK, US, Canada, Brazil, Germany, Austria, Switzerland, Belgium, Hong Kong, China, Singapore, Thailand and Malaysia. Country representative quotas were followed. Survey respondents were drawn from six age demographics: 18-24, 25-34, 35-44, 45-54, 55-64, and 65+. 49% of respondents identified as male, 50% identified as female, and 1% identified as other.