It’s complicated: the relationship between insurers and consumers

It's complicated

A new survey by Collinson has found that UK consumers crave more contact with their insurers.

We all know it’s good to talk, but who would have thought that consumers wish to be contacted MORE by their insurers? Shocking, I know, but it’s true.

More than 2,000 insurance customers were asked questions about how insurance businesses can better communicate with their customers. Over half (63 per cent) of respondents said that they were open to further communication, while 51 per cent said that they wouldn’t have opted out of their insurance providers’ communications post-GDPR had they known they would miss out on useful information about products and services, as well as the benefits they currently have access to. Another key finding is that 69 per cent of consumers said that they would be encouraged to give their insurers permission to contact them in return for a discount on cover at purchase and / or renewal, which is nice!

There is a clear desire from consumers for better targeting and tailored experiences

It sounds like consumers want more and better communication, but that they want it on their terms. They are happy to receive communications from insurers, providing this means that they will be kept in the loop regarding useful information and benefits. Furthermore, they are happy to be contacted, should there be the incentive of a discount in place, and they are receptive to receiving product and benefits recommendations, providing they are targeted. As we know well by now, personalisation is appealing and a good driver of custom.

And this is good news for insurers too, as contact with insureds can help improve customer retention and trust. Although insurance has traditionally been a low-contact industry, and this is something that has worsened following the introduction of GDPR, there is no reason that the status quo cannot change, particularly given the potential benefits for insurers and consumers alike. Providing consumers are comfortable with how their data is being handled and shared, there are myriad benefits to be reaped.

“There is a clear desire from consumers for better targeting and tailored experiences, but insurers need to help their customers feel comfortable handing over the data that is needed to create them,” said Lawrence Watts, Head of Insurance at Collinson. “Insurance providers need to demonstrate the value of more regular and personalised communication in order to gain their customers’ trust. Those who succeed will be able to develop a relationship with their customers beyond that of a service provider, to that of a trusted partner.”