The future of home and motor insurance
What do customers want?
What makes home and motor insurance attractive to consumers? Deloitte surveyed over 8,000 customers from eight countries around the globe to discover what they want, and how COVID-19 has shifted their needs.
The ongoing social and economics consequences of COVID-19 are making their impact in the insurance market. The answer to the pressing question that’s been in the minds of executives in recent years -what attracts customers to certain products- is not an easy one, even more so as the pandemic is making many customers to reconsider the value and flexibility of insurance products over other features traditionally more valued.
To help us map the trends and preferences of existing a new customers, Deloitte has conducted a survey in Australia, Canada, China, Germany, Italy, Japan, the United Kingdom and United States. In our latest article The future of home and motor insurance: What do customers want? We explore the feedback provided on that survey in order to figure out how insurances companies can develop and adapt new or existing products to make them more attractive to customers.
Five main findings emerge from the survey:
- customers favour simplicity; they want products that
- are easy to understand, purchase and use, they also want to be confident that they are paying a fair price, and to trust that claims will be paid fairly; with this insight, insurers can use a human‑centred approach to redesign products and exceed customers’ expectations
- interest in insurance embedded into other services and in new product designs is strong in some customer segments, but varies considerably by country
- Internet‑connected offerings, such as motor telematics and home insurance linked to home sensors, cause apprehension among many customers; they do not feel comfortable sharing data from car and home sensors with insurers
- the COVID‑19 pandemic is increasing demand for adjustable cover and pushing people towards transacting via online channels; this behaviour is unlikely to revert to pre‑crisis norms for many people
- the survey suggests three opportunities to fuel growth: simplify how customers perceive and interact with products; tap into strong demand for parametric home insurance; and target carefully delineated segments with new services.