Survey shows consumer interest in non-traditional policy options
The survey from Companjon reveals strong interest in digital insurance across Europe and the United Kingdom.
A survey of consumers in Europe and the United Kingdom by Companjon revealed many are intrigued by the convenience and flexibility provided by companies with embedded insurance programs.
According to Companjon, 5,060 people across Spain, France, Germany, Italy and the U.K. were surveyed, with respondents ranging in age from 18 to 65. They were asked questions relating to several industries, including travel, entertainment, banking and ticketing to uncover their largest concerns and find out whether embedded insurance is something they believe would enhance their experiences with those providers.
There are several key takeaways from their survey results.
Customers want immediate payouts
Two-thirds of those surveyed said they prefer digital insurance over traditional, with many citing digital and automated claims as one of their top reasons for that preference. With this emphasis on convenience and speed, it’s no surprise that instant fixed monetary payouts were their top claim payout choice.
Intrigue about add-on insurance transcends generations
When asked whether they would consider purchasing automated add-on insurance, 65% of all participants, regardless of age, said they would. Millennials and Gen-Z participants were the most interested, with 69% and 68% saying ‘yes,’ respectively. Sixty-four percent of Gen-X respondents and 58% of Boomers also said they would consider purchasing an add-on policy.
Embedded insurance offerings can boost acquisition and satisfaction
When asked their main concerns while traveling, 61% of the consumers told Companjon they are scared their trip could be canceled by the provider, and half said they were worried there would be no flexibility to rebook or cancel their travel plans.
Flex cancellation is one possible solution to this concern, and 70% of consumers said they would be satisfied if offered that option. Over half said they would even consider switching transportation providers in favor of one that offered flex cancellation.
Delay insurance was also something the majority of respondents showed interest in, with 62% saying they would consider switching providers if delay insurance was offered and 32% of high-income earners ‘very likely’ to switch to obtain delay coverage. Spanish and Italian consumers were the most willing to jump ship in favor of better coverage options.
When it comes to banking, 67% of consumers said they are concerned their card details will be stolen, and 60% would consider switching banks if another offered cyber insurance.
Service and flexibility could mean more revenue for online businesses
Survey participants chose ‘quality of service/product’ as the number one feature they’d be willing to pay 5-15% more for when it comes to online bookings and purchases with transportation providers. Results weren’t much different when it came to travel and events consumers, with ‘quality of service/product’ and ‘flexibility to cancel’ topping the list of reasons they’d be willing to shell out more money.
You can view the full results of Companjon’s consumer survey here.