The changing face of the insurance customer
As the insurance industry continues to take a good look at itself and its practices, much attention has turned to identifying the changing face of the insurance customer. On this week's Insurance Business TV we speak to Andrew Mair of Vero Insurance, who says that they made a few discoveries when writing a report on the subject.
Video transcript below:
Anna Temple: As the insurance industry continues to take a good look at itself and its practices, much attention is turned to identifying the changing face of the insurance customer. Andrew Meyer of Vero Insurance says they made a few key discoveries in the process of writing their report on the subject released in August.
Andrew Meyer, Vero Insurance
Andrew Meyer: It’s very clear that customer buying behaviours and preferences are starting to change, not just in insurance but everywhere. Insurance is not immune from those changes in behaviours or preferences. So that presents both challenges and opportunities for brokers into the future. I think a lot of, if you think about the customers that are starting to look at the choice, they small businesses, they are very time poor, they don’t have a lot of time to do things outside their business and they are also working on their work life balance as well. So things like insurance tend to be an afterthought and something they do outside core business hours, because they spend so much time in their business and so that accessibility, that availability 24 hours a day is important. Access to good quality information is really important and there is a lot of that online.
Anna Temple: Meyer highlights the immediate need for the space to be mindful of these changes and to adapt to the needs of the younger more tech savvy customer.
Andrew Meyer: I think one of the other things that we need to reminded as an industry is that things are changing and people coming through, the younger people the females that are now coming through are running their own businesses, have different expectations to what have been traditional relationships. So the nature of relationships is changing and has changed over the last few years and will continue to evolve and technology or digital is playing an important role in that transition.
So to be, stay relevant and to continue to add value, brokers need to make sure that they are using all the available channels out there to access and making they are changing their business to reflect the different types of business owners that are coming through. Younger people are far more tech savvy, they have grown up on the internet, they click for everything including their insurance. They need to embrace the same technologies that their clients are embracing because otherwise they are potentially limiting their options in terms of how they communicate, how they access existing and potential clients. Online is not the answer to everything, but it certainly is becoming an increasingly popular way for people to source information as well as transact.
Anna Temple: Meyer also notes that the industry needs to be mindful that customers are bench marking their insurance experience, not only against other claims experiences, but against their experience with other financial industries.
Andrew Meyer: And I guess the other thing to bear in mind is that consumers are out there. They are not just bench marking the experience they are having online with other insurance companies. They are bench marking our industry against all the other industries and that becomes the bench mark. So their expectations are being set outside the industry, rather than necessarily inside the industry. So the more quickly people embrace and lift the participation rate within our industry to close at what’s going on in some of the other more leading industries in terms of technology and online experience, the better placed they will be for the future.
Anna Temple: This is Anna Temple reporting for Insurance Business Online.