What Consumers Want From Insurers

I recently published a research report called What Consumers Want From Insurers that examined what consumers cared about the most when it came to their insurance providers. In our analysis of survey responses from nearly 5,000 US consumers, we found that consumers most want:

  • a good reputation from life insurers
  • low prices from auto/home insurers
  • high quality coverage from health insurers

We took the analysis one step further and looked at how responses differed across five generations of consumers: Gen Y (18 to 27), Gen X (28 to 41), Younger Boomers (42 to 51), Older Boomers (52 to 62), and Seniors (63 and older). It turns out that Younger Boomers care the most about the actual coverage. Here are some other interesting factoids that we found:

  • Life insurers: Gen X wants low prices, Younger Boomers want good coverage, and older consumers want a good reputation.
  • Auto/home insurers: Young consumers want low prices, Younger Boomers want good coverage, and older consumers want good service.
  • Health insurers: Gen Y and Seniors wants good service, Gen X wants low prices, and Boomers want good coverage.

The bottom line: Insurers need generational-specific strategies.

Written by 

I'm an experience (XM) management catalyst; helping organizations improve results by engaging the hearts and minds of their employees, customers, and partners. I enjoy researching and speaking about leading-edge XM topics. I lead the Qualtrics XM Institute, which is the world's best job. We're igniting a global community of XM Professionals who are inspired and empowered to radically improve the human experience. To achieve this goal, my team focuses on thought leadership, training, and community building. My work is driven by a set of fundamental beliefs: 1) Everything starts and ends with human beings, so you need to understand how people think, feel, and behave; 2) XM is a discipline that needs to be woven throughout an organization's entire operating fabric; and 3) Building the XM discipline requires a combination of culture, competency, and technology.

2 thoughts on “What Consumers Want From Insurers”

  1. Interesting post – was the analysis based on open ended (verbatim) responses or closed questions [asking to rank certain criteria]? It looks like the latter to me as the results are somewhat predictable. Using verbatim feedback across the 5000 respondees would require text analytics which could then allow unknown unknowns to be uncovered.
    One thing I would have expected to see as a requirement across the board with auto insurance in particular is the time to settle a claim. This is normally very long and my experience is that customers would be delighted if their claims could be settled much faster. Building models of known good claims and known fraudulent claims allows predictive modelling to be applied at FNOL (first notification of loss) such that good claims can be fast tracked and settled (even on the first call) and fraudulent claims can be equally fast tracked but into the fraud department. These models require data mining but could be made far more accurate if text analytics (e.g. of the call centre notes) were deployed too.

  2. Neil: The survey was not open-ended, it was a multiple choice response. I agreee that open-ended responses can provide extremely valuable insights, especially given the capabilities of text analytics vendors.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.