Guidewire has released the latest edition of its annual insurance customer attitudes study, shedding light on how various factors such as the cost-of-living crisis, technology, and diversity and inclusion impact customers’ views of the insurance industry. The report, titled ‘The Insurance Engagement Gap and its Impact on Perception and Innovation,’ reveals a range of insights into the current sentiment among policyholders in the UK.
Conducted by Censuswide, the study surveyed 4,126 insurance consumers across Germany, France, Spain, and the UK in February 2024. It aims to understand policyholders’ perceptions of the sector, particularly regarding new technologies, inflation, and the attractiveness of the insurance industry as a workplace.
Public opinion
The study found that opinions about the insurance industry are relatively fixed. A third (33%) of UK policyholders reported holding a negative opinion of the industry, unchanged over the past year. This contrasts with 19% who maintained a positive opinion. More than one in ten (12%) said their view had become more positive due to insurers’ efforts to support people. A strong correlation exists between those who have made a claim and positive opinions about insurers, with 40% of recent claimants feeling more positively towards the industry compared to just 8% of non-claimants.
Digitalisation
Despite the digitalisation trend, customers still prefer traditional contact methods when dealing with insurers. The majority prefer phone contact (66%, up 10% from 2023) and email (50%, up 11% from 2023). These preferences are even stronger among those who have made a claim, with 79% favouring phone contact and 56% preferring email.
Other key findings include:
- Usage-based insurance (UBI): While almost half (47%) of customers seek greater flexibility through UBI policies, only 10% currently have such a policy, marking a 4% decrease from 2023.
- Embedded insurance: Consistent with last year, 39% of respondents are comfortable buying insurance from companies like IKEA, Amazon, or Tesla. Among more digitally savvy customers, 66% who have processed a claim via social media would consider buying insurance through embedded offerings.
- AI in insurance: Nearly half (49%) are uncomfortable with AI making decisions about insurance pricing without human intervention, and 26% are very uncomfortable. However, 32% are comfortable with AI assisting in document filling, and 30% with AI helping human call handlers answer questions.
- Privacy concerns: There is a growing concern about data privacy, with a 6% increase in respondents (24% in 2024) not understanding why insurers need to collect their data. Younger customers (18