Global management consulting company Bain & Company (Bain & Co) has released a report delving into insurance consumers’ behaviour and preferences across the globe.
Focusing on the Australian market, the report found that general insurance dramatically outpaced life insurance in 2022, with the former growing by 10% and the latter contracting by -1%.
Australians were increasingly looking to digital means to engage with their insurers. Over 50% of customer interactions with general insurers were through digital-only channels in 2022, a jump of 15% from 35% in 2021.
Among the countries studied by Bain & Co, Australia and the UK were leading the pack for digital-only interactions, with 51% and 50%, respectively.
“More frequent natural disasters in Australia over the past few years means that customers are interacting more with their insurers and increasingly using digital channels to do this,” Bain & Co partner and insurance practice lead Richard Hatherall said.
Bain & Co’s report found that consumers preferred a human-digital combination for more complex processes, such as making a claim, with the use of hybrid channels increasing from 35% to 60% of these interactions.
“Making a claim can be more complicated, thus often requiring an ‘offline’ element alongside digital,” Hatherall said. “Getting the right channel mix has a strong influence on customer experience.”
The report also found that insurance customers are looking to insurers to reduce and prevent the risks that have driven “intense turbulence and uncertainty” in recent years. Specifically, 90% of Australian consumers became highly interested in risk prevention services from insurers, including inspection services before buying a car or home and rewards for healthy living.
“We are seeing a continuing shift in the industry’s central purpose from loss reimbursement to risk solutions this decade,” Bain & Co associate partner Adam Swirski said.
