The Impact of Changing Consumer Behaviour on Insurance Brands

When it comes to the insurance industry, current market conditions are driving accelerated changes in consumer behaviour. These changes are being seen in real-time through proprietary tools and media analytics. It is also apparent in the analysis and broad agreement by leading market commentators, such as Bain¹ and Deloitte², who believe harnessing technology can add real business value. But what are these leading trends, and what can the data behind them tell us about these new behaviours?

Increasingly, consumers look to personalisation when it comes to insurance solutions. After all, a personal approach is more likely to cater to an individual’s unique and specific needs. A report from Accenture shows that “80% of insurance customers are looking for personalised offers, messages, pricing and recommendations from their insurance providers.”³ With personalisation comes numerous benefits for the customer. Duck Creek Technologies surmises that these benefits can include better customer service accuracy, improvements to sales initiatives, increased customer satisfaction, and the ability to leverage insightful data.⁴ Over time, will these primary benefits be the key to fostering stronger customer connections and increasing customer loyalty?

Like many sectors, the insurance industry is experiencing a digital revolution – driven by a growing demand for seamless online interactions. A recent EY survey demonstrates how a digital savvy demographic “vastly prefers online channels: 80% are likely to purchase health insurance, and 73% are likely to purchase life insurance digitally. Nearly 60% prefer contacting their agents or brokers digitally”.⁵ Elysia Chan of McKinsey believes that “Customers want to take control of their digital lives.” This could promote competition among insurance companies. Furthermore, Chan surmises, “Financial institutions will want to be the first to redesign digital experiences to delight the customer and build deep data and AI capabilities to maximise actionable data and insights.”⁶ 

Customer experience has always been a means for insurance brands to differentiate themselves in a competitive market, and now, it is more vital than ever. Research from Qualtrics and ServiceNow reveals that “80% of customers switched brands because of poor customer experience”.⁷ By effectively engaging with customers and addressing their concerns by simplifying policy documentation and offering personalised support, insurance companies can actively build trust and loyalty among policyholders. 

Now more than ever, content marketing can play a crucial role in engaging with, and educating, customers. A survey by Accenture indicates 72% of customers want more information from their insurers before making a purchase decision.⁸ With this, insurance providers should look to develop more meaningful and purposeful experiences for the customer to inform them about their insurance topics and products to improve the customer journey. Blog articles, video content and interactive tools can help position brands as trusted advisors – and even as thought leaders.

Data and privacy also continue to be at the forefront of customer concerns. Insurance brands should prioritise this aspect of the customer relationship and build trust measures accordingly to meet the customer need. Data provided by CA Technologies shows that 86% of customers “indicate that a high level of data protection is a priority when choosing online services”.⁹ Trustworthiness and data security is therefore imperative. Customers expect competent cybersecurity practices when selecting one provider over another. By complying with regulations and communicating the transparency of privacy policies, competitors can demonstrate digital transactions’ secure and compelling nature – helping to establish long-lasting customer relationships.

Key takeaways from these industry findings and recent reports set out the importance for insurance companies to implement aspects such as personalisation, digital transformation, customer experience improvements, better communication and trust-building measures to support their target audience effectively. Now, the focus is on how brands must adapt to developing consumer trends and behaviours – then leverage these insights to build customer relationships in an ever-evolving landscape to remain competitive in the industry.

Gloria Kebudi is Client Strategy Director for Compare the Market at Tug Agency.