Understanding Insurance Consumers: What They Look for and Why

[This article was generated by ChatGPT and has been edited by the Surer team for clarity, readability and context.]

When it comes to purchasing insurance, consumers are often portrayed as overwhelmed, sifting through a sea of jargon and fine print.

But in reality, today’s insurance consumers are more informed and savvy than ever before.

They’re not just looking for a policy—they’re looking for the right policy and, equally important, the right intermediary to help guide them through the process.

So, what exactly drives their decisions? Let’s break it down.

Top Considerations When Purchasing Insurance

1. Price vs. Value
   It’s no surprise that cost is a major factor. However, consumers today aren’t just hunting for the cheapest policy – they’re weighing the value they’re getting for the price they pay. A 2023 survey by Insurance Business Asia found that 65% of consumers prioritise coverage benefits over premium costs when choosing a policy. They want to ensure they’re getting comprehensive coverage for potential risks, and they’re willing to pay a little extra for peace of mind.
2. Reputation and Reliability
   An insurer’s reputation plays a significant role in decision-making. Consumers are more likely to go with a company that has a proven track record of reliability, particularly when it comes to claim settlements. After all, the real value of an insurance policy is only evident when it’s time to make a claim. A quick Google search and a scroll through customer reviews can often tip the scale in favour of one insurer over another.
3. Coverage Customisation
   Gone are the days of one-size-fits-all insurance policies. Today’s consumers want policies that can be tailored to their specific needs. Whether it’s adding riders for critical illness or tweaking deductibles to better fit their budget, flexibility is key. A 2022 report by EY found that 72% of consumers appreciate the ability to customise their policies, making this a crucial factor in their purchasing decision.
4. Ease of Process
   In a world where you can buy anything with a few taps on your smartphone, insurance consumers expect the same convenience. The easier and more transparent the process, the better. From getting a quote to filing a claim, consumers appreciate insurers who embrace digital solutions. In fact, a 2021 survey revealed that 58% of consumers would switch insurers for a more streamlined digital experience.

What Consumers Look for in an Insurance Intermediary

Just as important as the policy itself is the person helping you navigate it. Consumers aren’t just looking for any intermediary – they want someone who ticks a few crucial boxes.

1. Expertise and Knowledge
   Insurance can be complex, and consumers want an intermediary who knows their stuff. They’re looking for someone who can clearly explain the details, pros, and cons of different policies, and who stays up to date with the latest trends and regulations. An informed intermediary can make all the difference in helping a consumer feel confident in their choice.
2. Transparency and Trustworthiness
   Trust is paramount. Consumers need to feel that their intermediary has their best interests at heart, not just a commission check. They appreciate transparency, especially when it comes to fees and the fine print. A trustworthy intermediary builds long-term relationships by being upfront and honest, even if it means advising against a more expensive policy that may not be the best fit.
3. Personalised Service
   Consumers want to feel like more than just a number. They appreciate intermediaries who take the time to understand their individual needs and tailor their recommendations accordingly. Whether it’s a quick phone call to clarify doubts or a follow-up email with additional resources, these personal touches go a long way.
4. Availability and Responsiveness
   Finally, consumers want an intermediary who’s there when they need them. Quick responses to queries, regular updates, and proactive communication are all traits that today’s insurance consumers value highly. In a 2023 survey, 54% of respondents said they would choose an intermediary based on their responsiveness alone.

At the end of the day, purchasing insurance is about more than just finding the cheapest policy or the flashiest brand. It’s about finding the right fit – both in terms of coverage and the person helping you get it.

Consumers today are informed, discerning, and looking for value at every step of the way.

By understanding their considerations and what they look for in an intermediary, the insurance industry can better meet their needs and build lasting relationships based on trust, transparency, and top-notch service!