For consumers it comes down to the price and coverage as the most important considerations when choosing an insurance policy. Furthermore, only 39% of the respondents has confidence in the good intentions of insurance companies, as stated in research from Motivaction.
Where coverage (58%) is important for consumers, price is essential (72%). This automatically raises the question: how distinctive are insurance propositions? Remarkable are the valuations of customer service (13%) and experience from peers (8%).
‘’Price will always be an important factor when making purchase decisions. Whether it is a new fridge, a weekend trip to Paris or a vehicle insurance policy, nobody wants to have that feeling that they have paid too much’’, says Christian van Leeuwen (CTO at FRISS).
Most consumers prefer to use the insurer (57%) as an orientation source to buy an insurance policy, closely followed by comparison websites (55%). Van Leeuwen continues: ‘’Nowadays, it is impossible to imagine a world without comparison websites for consumers. This also applies to the insurance industry. In our industry, aggregators in particular focus on insurances that require little advice and where comparison can simply be based on price. These policies mainly concern health and P&C products such as vehicles, travel and home, whereas, for example, disability insurances are less suitable’’.
With the rise of online insurance channels, it seems that brokers are losing terrain. Only 18% turns to an intermediary for orientation.
Lack of confidence
Financial companies and institutions are having a hard time in being trusted by society. Insurance companies are not an exception in this matter, since 59% of the respondents has it doubts or does not have any faith at all regarding the good intentions of insurers. It is essential for the insurance industry to win consumers’ confidence and become more trustworthy in the eyes of society. This should result in healthy, profitable portfolios for insurance companies and fair insurance premiums for the insured. Unfortunately, the remedy is as easy to think of, as it is difficult to implement.