The insurance sector is changing rapidly, and many of these changes have been centred around improving customer outcomes and experiences – however, one leader says they may have the unintended consequence of driving customers away from insurance.
Acting Kiwi Insurance CEO Larissa Vaughan says she wholeheartedly supports the regulatory overhaul, but the insurance sector should also be mindful to encourage ‘good insurance conversations’ rather than let their customers believe the worst
“There have been a lot of changes in the industry over the past few years, and these changes are going to shake things up,” Vaughan told Insurance Business.
“I don’t think that’s a bad thing – but we do want to make sure that people don’t view all insurance conversations as ‘bad conversations’.”
“Our concern is that one of the outcomes may be consumers not getting the cover they need – and we already know that a lot of the New Zealand public is quite underinsured, especially for life insurance,” she explained.
“The cost of cover could also become more expensive for the remaining policyholders, because you’ll end up with a smaller pool of consumers sharing the risk of the cover.”
Vaughan says Kiwi Insurance will be focusing strongly on customer experience in the coming years, and on ensuring a clear and accessible path to obtaining cover. She says it’s important for consumers to get a good experience when they do come to buy insurance, and that means satisfaction with the advice and assistance they get from the day of the application, and everything that comes afterwards.
“We’re not about just selling customers insurance – we want to make sure that we’re keeping in touch with them,” she said. “We want them to know when they can claim, what they’re covered for, and, if their life changes, how they can make amendments to that cover.”
“Just as it can be irresponsible to sell a policy because you’re getting a high commission, it can be equally irresponsible not to have an insurance conversation at all,” Vaughan concluded.
“The message around having responsible insurance conversations, and allowing the customer to make informed decisions as to whether or not they need insurance is really important.”
