- 93% of consumers and 94% of businesses are satisfied with the service of their current insurers.
- However, both groups (66% of consumers and 70% of businesses) believe the insurance buying process could be improved, with clearer policy documents a primary area for change.
- Insurers should consider a focus on demonstrating the benefits of personalisation and building trust with customers moving forwards.
London, 18/05/22: Despite the significant challenges of the Covid-19 pandemic, the vast majority of businesses and consumers feel overwhelmingly positive about their insurance providers and most of the insurance policies they buy.
According to new research commissioned and launched by DWF, the global provider of integrated legal and business services, 93% of consumers and 94% of businesses are satisfied with the service they receive from their current insurers.
The Future of Insurance report - based on a survey of 2,000 consumers and 403 insurance purchase decision makers at businesses in the UK - reveals that the pandemic has positively reinforced buyers’ perceptions of insurance, with nearly half of consumers (41%) and businesses (42%) reporting that the pandemic has made them appreciate the importance of insurance policies much more. As a whole, the research shows that respondents form part of a largely engaged and satisfied customer base, in an industry with already solid foundations.
However, both groups believe the insurance buying process could still be improved, with 66% of consumers and 70% of businesses stating that choosing or buying an insurance policy is always a difficult process. Both sets of buyers are aligned on calling for clearer policy documents. They want policies to be written in plain English with greater clarity around product information, especially more transparent explanations of any caveats or exclusions.
Personalisation and trust
The research also revealed an eagerness from both consumers (61%) and businesses (78%) for greater personalisation and customisation of policies. That said, it is clear that businesses and consumers lack knowledge of, and confidence in, these matters, with more than 70% of both groups of buyers wanting to know more about the benefits of personalisation and customisation.
Nonetheless, consumers have concerns about data security in relation to personalisation. Nearly half of consumers (49%) believe that personalisation means they will lose control over their data and a further 45% do not feel comfortable about insurers having access to or using their personal data to inform products - highlighting a need for more information around data protection and the benefits of personalisation.
Younger consumers’ attitudes
The data also reveals that younger consumers have higher expectations of their insurers, with those aged 18–24 more likely to have felt let down by their insurer (32%) compared to any other age group (average of 16%). According to the research, their dissatisfaction stems from a perceived lack of empathy and support from insurers.
Nevertheless, while expectations may be higher, they are also willing to pay more. A quarter of 18–24-year-olds are more likely to consider paying higher premiums for all insurance types, compared to just 10% of those aged 55+.
Younger consumers are also more open to new approaches from insurers. More than seven in ten of 18–24-year-olds are interested in personalisation and customisation in their insurance policies, whereas 43% of over 65s are not – demonstrating an opportunity for insurers to use innovation to engage with existing customers and attract new ones.
Nigel Teasdale, Commercial Director of Insurance at DWF, commented: “The headline insights about satisfaction levels post pandemic are encouraging. The insurance industry will no doubt greatly welcome the fact that buyers’ perceptions of their services appear to have not been adversely impacted by the pandemic.
Claire Bowler, Global Head of the Insurance Sector at DWF, added: “There are some parts of the research that insurers will hopefully find of interest for their product lines and development, specifically around businesses and consumers wanting a more nuanced, tailored and responsive service from their insurers. Younger customers in particular seem willing to pay for more innovative, personalised and customised products which gives insurers the perfect opportunity to refine their offering, develop new solutions and forge enhanced relationships with their customers.”