The result of Lumera Pulse survey – Digital participant activation

Blogposts | Blogpost
07.10.2022

Insurance is characterized by often complex and abstract products – it does not provide any immediate perceived benefit. Consumers find it difficult to understand what insurance products contain and what they get in return against the premium they pay, as well as comparing and choosing between different insurance products. It is often unclear what the consumer is buying – a financial protection in case an unexpected event occurs – and if an insurance policy fulfills his or her needs. Also, because of the way that insurance is provided, consumers often struggle to purchase the proper coverage.

With this in mind, we wanted to find out how insurers in the European Life and Pensions industry best guide consumers to make informed decisions. A Lumera pulse survey was sent to almost 2,000 recipients working in the Life and Pensions industry in Europe.

Executive summary

In today’s world, insurance companies face a great challenge when it comes to communicating their key message to consumers in an increasingly competitive environment. However, the digital transformation enables more opportunities for insurers to interact with consumers.

The insurance industry has been experiencing a shift in consumers’ preferences – they expect interactions to be fast, efficient and as simple as possible. But the insurance industry is lagging behind other industries in giving consumers what they want, which is a seamless and easy digital experience. When it comes to product information, consumers expect to find both basic and detailed product information. Hence, simplification is key.

Therefore, insurers must simplify the variety of products in their attracting and interaction channels, giving better advice, better explanations and avoiding using technical language. They should also create resources that facilitate the understanding of their products by taking advantage of technologies such as Big Data, AI and gamification, which also help increase brand awareness and loyalty. Giving the consumers access to the right information, at the right time and at the right place, will empower them to make the right decisions.

In this challenging environment, the only certainty is change. As the insurance business is moving more and more towards tailor-made, engaging experiences through added-value services that allow such transaction to become an interaction, consumers, who are used to a digitally eased power of choice, are granted with self-direction, personalization and active participation.

Below please find the detailed result of the survey:

1. What is the number one reason for L&P being a low interest product?
The number one reason for L&P being a low interest product is L&P products do not provide any immediate perceived benefit (42 %). Second is L&P products are complex (35 %), followed by Difficulties comparing and choosing between them (17 %), Too much information (4 %), Lack of information (2 %) and Lack of credibility (0 %).

2. What are the 3 top factors that best drive digital customer engagement?
The 3 top factors that best drive digital customer engagement are Attractive and user-friendly experiences (80 %), Simulation and planning tools for risks and savings (50 %), Personalized policy insights and information (45 %), followed by Proactive customer service (38 %), A strong brand and marketing activities (37 %) and Gamification features (7 %)

3. How do insurers best guide consumers to make informed decisions digitally?
Insurers best guide consumers to make informed decisions digitally by Creating content that is valuable and interactive (64 %). Second is Personalized content and product offering (53 %), followed by Visualize risks to customers (28 %) and Offer specific advice (19 %).

4. What are the 3 top challenges for insurers when driving digital participant activation?
The 3 top challenges for insurers when driving digital participant activation are Legacy systems – making development time consuming (70 %), Compliance and legislation (66 %) and Accessing and processing customer data (37 %), followed by Not reaching customer expectations (35 %), Lack of innovation (21 %), Low digital maturity among customers (18 %) and Competition from disruptors (17 %)

 

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