According to new figures from the Exeter, 99% of customers said that the quality of a product was important to them when purchasing insurance. This was closely followed by affordability, with 98% of people saying this was important when choosing cover.
Just as critical to customers was choosing a provider that offers good customer service and has a strong track record for paying claims. 98% of respondents thought these were important, compared to 91% who stated the inclusion of additional benefits as important.
Although UK adults have a strong shared notion of what counts as an attractive insurance product, around half (48%) do not have insurance such as income protection, health insurance, life insurance or cash plans. The low uptake of these forms of cover across the population indicates that the insurance sector still has substantial room to grow, but only if consumer needs over quality, affordability and service are addressed, the protection and health insurer said.
The Exeter’s findings also show that diversity and inclusion is a growing consideration for insurance customers. 84% of adults consider it important for an insurer to incorporate clear diversity and inclusion values in day-to-day business. Over a quarter (27%) of respondents reported that this was ‘very important’ to them, increasing to a third (33%) among those aged 18-24. If insurers are keen to attract a younger customer demographic a commitment to diverse and inclusive business must become a key priority.
Over 75% of UK adults are confident that an insurance company will pay a claim for income protection, health insurance, or life cover. However, just one in five (21%) were ‘very confident’ that this would be the case, demonstrating the need for greater education from the industry to reassure policyholders and potential customers.
Isobel Langton, chief executive at The txeter, said: “The findings from our research are clear: insurers must continue to work hard to ensure quality is not sacrificed for affordability. Finding the right balance is key. High-quality products, excellent customer service and a commitment to being a diverse and inclusive business are not optional extras. They are now key considerations that consumers rightfully expect of any insurance provider.
As a mutual insurer, delivering the best possible outcomes for our members is central to everything we do. But that doesn’t mean we can’t be even better than we currently are, and the new insights unlocked by our research give us further food for thought.
We are committed to making insurance more accessible to more people, building trust in our industry, and ensuring we exceed the expectations of our members, both now and in the future.”