New views: How COVID-19 reshaped consumers’ insurance demands

New views: How COVID-19 reshaped consumers’ insurance demands

In summer 2020, Accenture surveyed 23,400 European customers in 15 countries– part of a worldwide survey of over 47,000 customers. They reveal COVID-19 set off a sudden shift in customer expectations and demands of insurers that may otherwise have actually taken years to materialise. 39 percent of North American consumers engage their insurance provider via mobile channels at least once a month, as do 45 percent of consumers in Asia-Pacific, 54 percent in Brazil and 56 percent in the Middle East. The study was conducted when consumers were restricted to their homes to varying degrees, and were experimenting with digital channels for daily purposes.
Two-thirds of European consumers state theyre satisfied with online mobile channels, while simply 5 percent are disappointed.

In Europe and across the world, theres hope that life will begin to go back to typical this year. Although individuals may begin to work, travel and socialise as we utilized to, the way we purchase insurance coverage– and certainly what we want from our insurance providers– will never be the exact same.
How can we make certain? Since we asked people. In summer season 2020, Accenture surveyed 23,400 European customers in 15 countries– part of an international survey of over 47,000 customers. Much of the behaviour moves we kept in mind then have actually accelerated as restrictions have persisted.
The study results are striking. They show COVID-19 set off a sudden shift in customer expectations and needs of insurance providers that may otherwise have actually taken decades to materialise. Four of these findings are especially notable.
1. Digital engagement rises
European consumers use of digital channels to engage with their insurance provider rocketed in the last two years (though its still lower than peers in other places, as the diagram shows): 56 percent communicate with their insurer via online mobile channels at least once a year, compared with just 32 percent in 2018
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Simply over a quarter of European customers (26 percent) engage with their insurer in this manner at least when a month, compared with only 11 percent in 2018.
In spite of that fast boost, Europe lags the world on digital use. Indeed, 39 percent of North American customers engage their insurance provider by means of mobile channels at least when a month, as do 45 percent of customers in Asia-Pacific, 54 percent in Brazil and 56 percent in the Middle East. The figures for customers who used these channels a minimum of when a year, as the diagram shows, are higher.
This raises a crucial question. Is the spike in digital uptake a short-term aberration caused by the unique situations of lockdowns? The survey was carried out when customers were restricted to their homes to varying degrees, and were exploring with digital channels for everyday purposes.
We think not. While some customers might revert to more conventional techniques of engagement, the bulk will continue with the digital behaviour they have actually ended up being familiar with in recent months. And why wouldnt they? Two-thirds of European consumers state theyre satisfied with online mobile channels, while just 5 percent are disappointed.
2. Value for money rises the program.
Worth for money is today the most crucial element for customers when dealing with insurers and banks; in 2018, it was in fifth location. The parlous economic climate discusses why consumers have ended up being more cost-conscious, however this does not indicate rate alone holds the service to keeping existing company and winning over brand-new insurance policy holders.
By offering solutions that are basic, practical and, significantly, tailored to each users personal situations, insurance companies can create a good impression. Indeed, a capability to handle accounts in a manner that fits the client is the second-most crucial element that customers cite when handling financial services companies.
Numerous insurance providers, naturally, already do this. The secret is to marry these services with competitive rates.
3. Personalisation is pivotal.
European customers cravings for personalised services soared during the pandemic. Take automobile insurance: 76 percent revealed an interest in automobile insurance coverage that ties premiums to safe driving, compared with 54 percent two years previously. In addition, 70 percent of Europeans have an interest in pay-as-you-drive automotive insurance coverage; thats up from 52 percent.
We also discovered that more European customers desire customised life insurance– 58 percent have an interest in life insurance coverage where premiums are tied to a healthy way of life, up from 40 percent in 2018.
This clamour for customised insurance coverage is partly a result of a desire for lower costs. Nevertheless, consumers might well feel, too, that altering their driving behaviour and embracing a healthier lifestyle must provide a path to lower premiums. It also reflects the fact that COVID-19 motivated many individuals to drive less and to lead much healthier way of lives– and they want their insurance to reflect this.
4. Safeguarding home digital infrastructure is critical.
With lockdowns requiring whole populations to work, hang out and go shopping from house, European consumers have actually become exceptionally dependent on the IT facilities– which for the majority of is an online, computer and wi-fi accounts– that allows this.
Thats caused lots of to think for the very first time about securing their residential digital infrastructure. Importantly, theyre prepared to listen on this from their insurer: 74 percent of European customers would be interested in support dealing with cybersecurity hazards if offered by their bank or insurer, while 45 percent are interested in cybersecurity insurance coverage for their home where premiums are tied to utilizing the most recent virus defense software.
Some insurance providers have actually already started to offer this type of assistance, and our survey reveals this will be well received. Its likewise unlikely that consumers will end up being more unwinded about safeguarding their digital facilities when the pandemic recedes– after all, 51 percent of those that can work from house mean to do so more frequently after COVID-19.
Simply put, our study shows consumers have adapted exceptionally quickly to these unprecedented circumstances. To satisfy their brand-new expectations, insurance providers will likewise need to move fast.
To read more about our research into the impact of Covid-19 on the insurance market, read our report.
Disclaimer: This material is supplied for basic details functions and is not planned to be utilized in place of consultation with our expert consultants.

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