Insurance is characterized by often complex and abstract products – it does not provide any immediate perceived benefit. Consumers find it difficult to understand what insurance products contain and what they get in return against the premium they pay, as well as comparing and choosing between different insurance products. It is often unclear what the consumer is buying – a financial protection in case an unexpected event occurs – and if an insurance policy fulfills his or her needs. Also, because of the way that insurance is provided, consumers often struggle to purchase the proper coverage.
With this in mind, we wanted to find out how insurers in the European Life and Pensions industry best guide consumers to make informed decisions. A Lumera pulse survey was sent to almost 2,000 recipients working in the Life and Pensions industry in Europe.
In today’s world, insurance companies face a great challenge when it comes to communicating their key message to consumers in an increasingly competitive environment. However, the digital transformation enables more opportunities for insurers to interact with consumers.
The insurance industry has been experiencing a shift in consumers’ preferences – they expect interactions to be fast, efficient and as simple as possible. But the insurance industry is lagging behind other industries in giving consumers what they want, which is a seamless and easy digital experience. When it comes to product information, consumers expect to find both basic and detailed product information. Hence, simplification is key.
Therefore, insurers must simplify the variety of products in their attracting and interaction channels, giving better advice, better explanations and avoiding using technical language. They should also create resources that facilitate the understanding of their products by taking advantage of technologies such as Big Data, AI and gamification, which also help increase brand awareness and loyalty. Giving the consumers access to the right information, at the right time and at the right place, will empower them to make the right decisions.
In this challenging environment, the only certainty is change. As the insurance business is moving more and more towards tailor-made, engaging experiences through added-value services that allow such transaction to become an interaction, consumers, who are used to a digitally eased power of choice, are granted with self-direction, personalization and active participation.
Below please find the detailed result of the survey:
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