The study, which surveyed 2,000 consumers and 403 insurance purchase decision makers at UK businesses, said 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. The study also said that the respondents form part of a largely engaged and satisfied customer base, in an industry with already solid foundations.
“The headline insights about satisfaction levels post pandemic are encouraging,” said Nigel Teasdale, commercial director of insurance at DWF. “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.”
However, both groups said that improvements can still be made to the insurance buying process. Sixty-six per cent (66%) of consumers and 70% of businesses said that choosing or buying an insurance policy is always a difficult process. Both groups agreed that there is a need for clearer policy documents, with policies written in plain English with greater clarity around product information, especially more transparent explanations of any caveats or exclusions.
Both consumers (61%) and businesses (78%) want greater personalisation and customisation of policies. However, both 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.
Consumers have concerns about data security in relation to personalisation. Nearly half (49%) of consumers believe that personalisation means they will lose control over their data. Meanwhile, 45% do not feel comfortable about insurers having access to or using their personal data to inform products. This highlights a need for more information around data protection and the benefits of personalisation, the report said.
The study found that younger consumers have higher expectations of their insurers, with those aged 18 to 24 more likely to have felt let down by their insurer (32%) compared to any other age group (average of 16%). This dissatisfaction stems from a perceived lack of empathy and support from insurers, the study said.
While their expectations may be higher, younger consumers are also willing to pay more. Around a quarter of 18- to 24-year-olds are more likely to consider paying higher premiums for all insurance types, compared to 10% of those aged 55+.
“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,” said Claire Bowler, global head of the insurance sector at DWF. “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.”
