Consumers Welcome Insurance Providers Offering Other Services Suggests Survey

Published: September 26, 2016

Updated: July 24, 2018

Author: Luke Jones



The next quarter of a century could present dangerous times for the insurance industry, especially auto insurance providers. However, according to a recent survey, consumers say that they would accept insurance companies that branch out into offering a platform for services.

Bain & Company Inc. conducted the survey over 164,421 consumers in 19 nations. With insurance companies embracing digital, 70% of those asked said it would be valuable to have a platform for services beyond insurance solutions. The results have been presented in a report titles Customer Behavior and Loyalty in Insurance: Creating Opportunities Beyond Basic Coverage.

Research Now carried out the survey and found that life insurance provides have “an untapped opportunity to generate sales of additional products and transform from sellers into solutions providers, helping to boost the industry’s traditionally low rates of customer engagement and loyalty.”

This is the second insurance loyalty study, which is on a biennial cycle. It shows that 50% to 80% of consumers asked think insurance companies could be a platform for other services. Among these related services would be anti-theft services, home security systems, health advice, and more.

“In most countries surveyed, more than 70% of consumers said they are willing to share personal, health or other data with insurers to gain access to insurers; additional offerings,” the statement notes.

The survey also finds that insurance companies engaged with consumers build greater customer/provider relationship, especially in the property and casualty sector.

“The survey data shows that loyalty remains tough for many insurers to come by,” the report notes.

“One structural reason is that insurers have far fewer interactions with customers than, say, retail banks. In some markets, interactions are even dwindling with the rise of online aggregators,” it adds.

 “Insurance executives know that improving the long-term economics of the business will require interacting more and delivering more value to customers,” Henrik Naujoks, a report co-author who leads Bain & Company’s financial services practice in Europe, the Middle East and Africa, says in the statement.

Noting that customers are looking for insurers to provide more than just claims management, “the carriers who will win in this new consumer-led environment are those who can create an ecosystem of value-added services,” comments Andrew Schwedel, a report co-author and senior member of the financial services practice at Bain & Company.

Bain & Company offers some advice to insurance companies based on the results of the survey:

  • capture a greater share of wallet – improvements in cross-selling can generate huge value in both p&c and life, and those who focus on building relationships with customers, as opposed to just selling products, gain a considerable advantage.
  • earn greater customer loyalty – there is a significant gap between loyalty leaders and laggards across all of the countries analyzed;
  • fix the basics and accelerate the mobile channel – the share of digitally active customers, online and mobile, is up everywhere over the past two years and mobile offers huge potential to create satisfied customers, especially for claims; and
  • mastering customer switching in p&c – customers tend to engage in comparison shopping, heightening competition and crimping profitability, with aggregator platforms emerging in all markets and becoming the main channel for comparison shopping research in a few.