The level of trust towards the insurance industry is lower among millennials than among older demographics. Insurers need to address these concerns or else be faced with customers who have little faith in them – and who ultimately may not purchase products.
GlobalData’s 2018 UK Consumer Insurance Survey found that individuals aged under 35 are less likely to have complete trust in their insurer to be completely transparent about fees and charges than those aged 55 and over. This is the case in seven out of eight products considered.
With new rules in place that aim to increase the transparency of renewals in general insurance products, such as motor, pet and travel. The variation in the percentage of individuals who completely trust their insurer in these markets is concerning.
The survey found that the percentage of policyholders who completely trust their insurer is on the whole lower in general insurance products, indicating that these rules have not boosted trust amongst consumers.
Inspiration could be found in other markets – such as satellite TV – where various charges or fees occur and customers are able to easily add on elements to the product and see how price changes instantly. Leveraging existing templates will allow consumers to feel naturally more at ease and increase the level of trust within the industry.
Pet and motor insurance are general insurance products where complete trust is lowest across both younger and older demographics when compared with other products. The pet insurance market in particular has considerable room for growth, as an estimated 84% of cats and 67% of dogs in the UK have no insurance in place according to the Association of British Insurers.
Yet this low level of trust is paradoxically an opportunity for insurers willing to expand in this product line. Providers that make it explicitly clear what every fee and charge is for, that clearly explain both insurance and non-insurance terms, and that are able to convince consumers of this transparency will be winners.
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