The research highlighted that the unprecedented circumstances have seen an increase in consumer engagement with the insurance industry in Australia.
Russel Higginbotham, CEO of Swiss Re, told Insurance Business Australia: “I think insurers should expect to see more engaged customers as a result of Covid-19; we found almost half (44 per cent) in Australia will look more closely at the coverage details contained in future policies and one quarter will be more vigilant about having a broader range of coverage. It seems Covid-19 is causing people to re-evaluate what’s important to them.”
The research focused on responses from across Australia, with respondents being age 45 on average and 52 per cent female.
The findings show that the pandemic has changed consumer attitudes towards insurers and their policies. One in five respondents admitted to feeling anxious about their financial position due to the pandemic. A further 28 per cent of participants admitted that they were willing to sacrifice their life insurance if pressed for money, but only 14 per cent would sacrifice their home or motor insurance.
At the same time, only six per cent of respondents who have a current insurance policy have made a coronavirus-related insurance claim, with travel insurance being the most common source of these claims at 43 per cent.
Also revealed were opportunities for insurers when it comes to designing products for the future market, with value-add features being of high appeal to customers. A further 44 per cent revealed they were in need of immediate financial support, outside of claim payments.
Higginbotham summarised: “Our research provides valuable insight at a time when consumers are being tested – physically, mentally and financially.
“It’s in challenging times like these that we find opportunities and, for our industry, it’s a chance to better connect and engage with our customers as well as reviewing product features and how they are delivered in a post-Covid world.”