The level of discussion and hype around InsurTech, Digital, and Innovation remain high within the insurance industry. While the market is saturated with points of view and opinion on what is possible with respect to re-imagined personal lines products, there is limited fact-based actionable insight on what consumers want.
Deloitte therefore conducted a global study to help answer the question: which features of home and motor insurance are most attractive to customers? With more than 8,000 consumers surveyed across eight countries, this is one of the largest studies of its kind.
What we did
We surveyed over 8,000 customers from Australia, Canada, China, Germany, Italy, Japan, the United Kingdom and the United States. The results give a clear indication of what customers want.
Insurers can use this feedback to help guide the launch of new products, services and partnerships with InsurTechs.
1. 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.
Basic products are most popular and capture a 41% share of customers’ votes for their favourite products on account of their simplicity.
Many are willing to switch
Customers who have switched insurance provider in past 12 months.
2. The rise of the ‘convenience crew’
Interest in insurance embedded into other services and in new product designs is strong in some customer segments. Motor insurance customers who lease their cars most want ‘invisible’ insurance embedded into their leasing contracts.
Percentage motor insurance product #1 choice
Convenience crew segment.
3. Privacy over lower premiums
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.
Only 30% would share data from home sensors with an insurer in return for a lower premium and coverage more tailored to their needs.
Opportunities for growth
|Simplify how customers perceive and interact with products
UK customers display a strong preference for simplicity. They are also familiar and comfortable with basic products. Insurers need to keep new products simple and demonstrate their value clearly to customers
|Tap into strong demand for parametric home insurance
This type of insurance pays claims of a pre-agreed amount automatically when an event falls within set parameters, such as a level of rainfall or speed of wind. 54% rated it as extremely or very desirable, making it the most popular product feature.
|Target carefully delineated segments with new services
The survey indicates that younger customers are more in favour of new concepts than their elder peers. More importantly, our survey points to the existence of segments where people are most likely to buy a new product or service rather than a basic policy.
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