Today’s insurance consumers want insurers to do more than help them when there is disruption but help them reduce and prevent risk too, according to a new report by Bain & Company published in February 2023.
The report, ‘Customer Behaviour and Loyalty in Insurance: Global Edition 2023’, gave insight into the changing approaches of insurers and needs of consumers.
The new research surveyed 28,765 consumers in 14 countries, confirming that consumers want more from their insurers than simple coverage. Consumers overwhelmingly want risk prevention and mitigation services from their insurers.
In Japan 81% of respondents evinced interest in risk prevention. Additionally, more than 40% of millennials are willing and interested in paying for life insurance that includes risk prevention.
Changing customer behaviour also means a shift for insurance agents, who historically pushed out offerings with a pitch, and now need to pull in customers by addressing their priorities at the right moments. Technology, including digital tools and advanced analytics, will allow insurance companies and their agents shift away from a transactional role to a broader relationship-based consumer interaction.
Insurers will need to deliver on the promise to address elements that consumers value most, including being a purpose driven company, as well as incorporating risk prevention and mitigation.
Customers also wanted to be rewarded by the insurers for their risk-prevention habits. For example, consumers want to be rewarded for safe driving by their auto insurers.
Presently, however, not many consumers are using risk-prevention services. There is opportunity to improve as consumers are open to sharing data with insurers and there is growing infrastructure to leverage consumer data to motivate and reward risk-prevention habits. M