Access PaySuite's recent research highlights a significant trend in the insurance industry: the growing need for flexibility and convenience in payment options to attract Generation Z and Millennial customers.
The study, part of Access PaySuite's latest report, “Future-Proofing payments in the insurance sector,” reveals that 80% of Gen Z respondents consider diverse payment options a major factor in choosing an insurance provider, with 77% of Millennials echoing this view.
The research underscores the importance for insurance providers to adapt to changing customer preferences, especially among younger generations, by offering innovative and varied payment solutions. It also points out that security and flexibility are paramount for consumers when paying for insurance policies, with 42% of respondents prioritizing the safe and secure handling of their data.
However, the study also uncovers some concerning issues in the sector. Over a third of consumers have had negative experiences related to paying their insurance premiums. These include instances where payments were made without full customer awareness (39%), challenges in cancelling payments (35%), and being overcharged (33%).
Andrea Dunlop, managing director at Access PaySuite, commented on the findings, noting the high expectations of Gen Z and Millennials, who have grown up in the digital age, for the digital platforms they interact with, including in their financial transactions.
“In the ever-evolving landscape of consumer trends, the heightened expectations of younger generations serve as a guiding light for the future of commerce. Businesses and industries that can adapt and innovate accordingly will undoubtedly experience the greatest success in the years to come,” Dunlop said.
The research demonstrates an increasing demand for diverse payment options in the insurance sector. Today's consumers, Dunlop said, are looking for convenience and flexibility in managing their payments. This is particularly relevant for insurance policies. For insurers to capture new markets, including younger generations, they must adapt their offerings.
Flexible payments not only cater to those who are accustomed to digital transactions but also provide personalized support for those preferring human interaction. Such adaptability gives insurance providers a competitive advantage in attracting and retaining customers, according to Access PaySuite.
What are your thoughts on this story? Please feel free to share your comments below.
