In a recent consumer report, a global professional services company revealed that so-called insurance nomads are becoming the new norm.
The
Accenture report characterised nomads as highly digitally active consumers who are not tied to financial service providers; who value digital innovation and want new ways of accessing service and advice; and who are very open to the concept of computer-only advice.
The report found that nomads seek personalised offerings, with 49% showing interest in buying pay-per-use insurance coverage online or via mobile for specific temporary needs; while 82% want adjustments in auto insurance costs based on car usage. The survey also found that 62% of nomads would consider peer-to peer insurance if available.
Nomads are also willing to transition to a new digital model, with 42% saying they are very willing to use computer-generated advice to buy insurance; and a further 43% saying they are somewhat willing to do so. These findings show that if insurers want to reach nomads, they should get started with automated product advice programs, if they haven’t already.
In terms of buying insurance, 51% said they have purchased insurance online; while 58% said they would see an online channel as a preferred way to purchase. Nomads were also found to use either mobile, instant messaging, or social media to make a claim, at 24%.
However, while the digital push may not seem like good news for brokers, it does at least seem that true insurance professionals have retained their value in the eyes of many. In terms of brand loyalty, the survey showed that 27% believed that a good personal relationship drives loyalty and the survey also revealed that 30% see brokers as the most useful product advice source, with another 29% citing online aggregators, and 26% insurers’ websites.
The study suggested that brokers will also increasingly play the role as “closers” and problem-solvers rather than primary sales contacts, as 51% said they still buy policies from agents face-to-face or by phone, while 24% said they value a human’s ability to explain complex topics.
Finally, nomads were also found to be willing to try tech firms, with 74% saying they would consider taking up insurance from Amazon or Google, and 55% willing to consider purchasing insurance from a supermarket or retailer. To respond to this trend, insurers should explore partnerships with non-insurance providers, Accenture said.
The report, titled
The Voice of the Customer: Identifying Disruptive Opportunities in Insurance Disruption, polled 32,715 consumers across 18 markets including Australia, China (Hong Kong), Indonesia, Canada, the United Kingdom, and the United States.
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