Fostering Trust in Insurance
Of eight characteristics defined and researched in our consumer survey, trust emerged as the most important when respondents were asked to place statements in order of agreed sentiment. Almost two thirds of individuals were characterized as “trust-driven”.
Being trusted is key to any service provider’s business. For insurance providers, where the product being sold is essentially a promise to pay out when the unthinkable or unfortunate happens, it is a foundational characteristic. Despite this, trust in the insurance industry is low.
Various studies and surveys in recent years have demonstrated low trust levels in the insurance industry.While a modicum of trust already exists in the market for it to function, this can be seen as only enough for marriages of convenience or necessity. Transparency can be achieved by being honest and open with the customer on how their money is being used; being clear and fair about any changes in terms or alterations to premiums; and by making efforts to ensure policy terms and coverage are as easy to understand as possible.
Credibility can be won by working to earn and encourage positive reviews; offering measured and personalized responses to feedback, regardless of whether it is negative or positive; and by letting actions speak louder than words by ensuring fair and fast payment of claims.New business models within the insurance industry are redefining how trust may be earned - be it through simply enhancing clarity via use of technology, being more flexible on contract terms, or shifting revenue models to give money back or to charitable causes.
The report Fostering Trust in Insurance, takes a look at the concept of trust and its growing importance to consumers - and by extension to insurance propositions - in an era of GDPR-led data protection and a digital, connected world. The report discusses not only the extent to which trust is sought by consumers, but highlights two key routes to achieving trustworthiness within the insurance market, including case studies of brands taking these steps.
Companies mentioned in this report: Aviva, Liberty Mutual, DAS, Amazon, Trip Advisor, Reviews.co.uk, Trustpilot, Swinton, Saga, Privilege, Petplan, More Than, LV=, Hastings Direct, esure, Direct Line, AXA, Animal Friends, Admiral, Lemonade, Bought By Many, Kinsu.