Irish 2021 Outlook for Insurance has been saved
Irish 2021 Outlook for Insurance
Donal Lehane, Partner and Insurance Leader, Deloitte, looks at what awaits insurers as COVID-19 subsides.
Irish insurance carriers, their customers, partners, management and employees
faced significant challenges in 2020. The COVID-19 crisis had a material impact
on individuals, SMEs and corporates, society and the wider economy which
has had a direct impact on the industry’s performance and individual insurer action plans and strategies.
The high level of cash savings by individuals during the pandemic may mean there are opportunities to attract that cash into savings products when consumers have greater confidence later in 2021.
Donal Lehane, Partner and Insurance Leader, Deloitte Ireland
However, in Deloitte’s point of view, the COVID-19 crisis has accelerated many of the changing dynamics that were already underway, and this is evident both at a global and local Irish level. The Deloitte 2021 Global Insurance Outlook and Future of Home and Motor Insurance reports highlight key macro trends that are very relevant from an Irish context.
Additional report: The Future of Home and Motor Insurance
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.
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.