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Consumers demand more from insurers

These are extremely challenging times for individuals, families, businesses and indeed whole societies and economies. The insurance industry has a key role to play in supporting customers and societies through COVID-19 and the recovery. Insurance customers are becoming more demanding of their insurance companies, with more people seeking greater ease and clarity, specifically wanting improved functionality on digital platforms, proactive communication on the effect of Coronavirus on their service offering, clear direction on communication channels as well as prioritization of frontline workers (up 3-4 percent demand vs. W1).

Insurance priorities - Infographic

Increased purchasing activity

COVID-19 has led to an increased customer desire to secure against unforeseen events. Where customers need to make a claim, efficient processing of claims remains critical –especially in the current environment, where delays in pay-outs may have severe implications for customers’ personal financial situation.

New activity, resulting from the COVID-19 situation, is now more directed towards acquisition than policy review or consideration vs. W1 (acquisition +5 percent, consideration -2 percent, review -4 percent vs. W1). Seven percent claimed to have lodged a complaint.

Acquisition was focused around auto insurance (which was up 5 percent vs. W1), highest in Italy (43 percent) and Brazil (27 percent) vs. 16 percent globally.

Smaller increases of 1-2 percent were seen for each of home, life, health, annuity and pet insurance vs. W1.

What does this mean for the new reality?

Insurance companies must rapidly adapt to the changing circumstances, introducing new digital tools, updating ways of interacting with customers and innovating products to respond to our new reality.

Insurers must consider in the increased interest in auto and home insurance, as consumers face lifestyle changes and acquire these products to avoid public transportation and carpools.

  

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Laura J Hay

Global Head of Insurance
KPMG International

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