Three ways COVID-19 is changing insurance

Health, safety, and financial security are more important than ever to consumers during the COVID-19 era. While consumer reactions vary, preventing and recovering from losses through insurance has become essential to consumers’ well-being.

We set out to learn on how the pandemic has changed consumer behavior and ways in which insurance companies can respond by changing their products and services. We surveyed 47,810 insurance consumers as part of our bi-annual global consumer study to understand their expectations, behavior, and experience of industry products and services during COVID-19.

Our learnings can help insurers navigate the remainder of the pandemic and beyond. COVID-19 consumer behavior includes three key consumer reactions to COVID-19 that stand out as likely to create long-term impacts.

During COVID-19, home is the center of the consumer’s universe. It is a safe port in the COVID-19 storm. It’s also functioning as a school, an office, and a shopping mall.

The consumer’s digital connection enables and drives the shift. Protecting that connection—the ever-critical link between home and the outside world—is now paramount.

It’s not surprising then that identity and personal data protection are top of mind.

Consumer cyber insurance products are coming to market. Offering the consumer protection for identity and precious digital data allows insurers an additional touchpoint—one that goes beyond assets into the foundations of consumer’s life.

Consumers are increasingly price sensitive in theses recessionary conditions. They are demanding that insurers deliver value for the money spent.

Consumers ranked value for money higher than any other priority—even higher than the ability to manage their accounts in a way that suits them. Competitive insurance pricing was also ranked in the top three factors consumers consider important.

More than half of North American consumers we surveyed say their insurer provided them with the support they needed as COVID-19 took hold. But globally, consumers were less satisfied. Eighteen percent say their insurer did not clearly and effectively communicate their response to the pandemic.

Historically, retention rates across the insurance industry have remained stable. But insurers cannot afford to be complacent.