Intelligence firm Ken Research has published a new report which says that the mass affluent population in the UK is growing, meaning the demographic is an opportunity for companies selling personal insurance.
The latest research explores the attitudes and insurance needs of higher affluence customers in comparison to the mass market. It examines the demographics of the consumer group and their purchasing preferences.
According to the study, mass affluents are more likely to be male, married, and have higher household incomes. They often travel abroad and are also more likely to own a second home, a car that requires specialist insurance and high-value items that need additional cover.
“The assets of mass affluents are higher value, making their insurance needs more complex,” said Kent Research director Namit Goel. “They have different lifestyles compared to retail customers, meaning they also have different insurance needs.”
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The penetration of personal insurance products is higher among mass affluents than retail customers, Goel added. They also pay higher premiums.
The research discovered that mass affluents are traditional insurance buyers. They prefer to purchase in person or through post and are less likely to do it online.
Compared to retail customers, mass affluents have a greater affinity for brokers and banks and are more likely to have a relationship manager. This highlights that they want guidance and a more personal experience when buying cover, the research noted.
Customer loyalty among mass affluents is also higher than retail customers, with 76% staying with their existing provider in 2016.
Mass affluents also give more importance to provider reputation and personal recommendations compared to retail customers. They want more provider engagement, Kent Research said, as they are heavier social media users who are also more likely to have used an insurance app in the last 12 months.
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