Insurance Customers Needs Are Changing (2024)

FAQs

How are customer expectations changing? ›

Rising customer expectations

Customers today have more choices than ever. They are more informed and have become more accustomed to constant innovation. As a result, their expectations for top-notch experiences have increased as well.

Today's insurers are exposed to multiple risks, from financial risks, such as shifting interest rates, changing costs and sources of capital, and increasing claims levels due to consecutive years of significant inflation, to an array of nonfinancial risks, including extreme climate events and generative AI (gen AI).

Insurance customers want to reduce risks in their lives and are willing to use risk-prevention services from insurers.

However, customer needs and preferences are not static; they change over time, influenced by various factors such as trends, competitors, technology, and feedback.

There are four main customer needs that an entrepreneur or small business must consider. These are price, quality, choice and convenience.

Embedded Insurance Gaining More Momentum

Insurance carriers will seek opportunities to find new and innovative areas to launch embedded insurance products. Hence, there will be a greater number of partnerships between product and insurance companies in the coming years to result in greater market penetration.

The primary reason is compensation—nearly 60% of those leaving the industry stated their pay was the primary reason for leaving. Work-life balance followed close behind, factoring into over 50% of responses.

Bankruptcy of Executive Life Insurance Company

Executive Life Insurance Company is regarded to be the biggest bankruptcy of an insurance company in the United States in the course of recent years. Based in California, the life company had to file for bankruptcy in 1991 following disastrous investments in junk bonds.

What is going on with the insurance industry? ›

Two insurance industry giants have pulled back from California's home insurance marketplace, saying that increasing wildfire risk and soaring construction costs have prompted them to stop writing new policies in the nation's most populous state.

Adopting insurtech enables insurers to implement automation, leverage data analytics, accelerate and streamline processes and increase personalization. Automated rule-based fraud detection is already standard practice.

Customer demands are constantly evolving because improvements in service reset their expectations at new levels. While customers initially appreciate better services, they quickly get used to, expect and demand them.

If consumers expect the price for a product to increase (or decrease) in the future, the current demand for the good will change.

For an employee, expectations have shifted to an inclusive company culture with empathetic leaders and increased flexibility around how and when they work.