Berlin-based insurtech Wefox has published its latest data report, showing that there is widespread customer dissatisfaction with services across the insurance industry. The Global Safety Report results also show a lack of trust in the global insurance market in an era when the customer experience should have been made much better through initiative technologies.
According to the study, data shows that despite this sentiment and the fact that insurance rates and the cost of living is rising, only 13% of respondents would reduce their insurance policies, even if they were struggling financially, demonstrating that insurance remains a resiliant industry.
Wefox examination of the insurance industry finds widespread poor customer service
Wefox, which was founded in 2015 and is now the fastest growing insurtech in Europe, gathered data from more than 12,850 consumers in Germany, Italy, Poland, Switzerland, the UK, and the US. The results show that 48% of respondents believe the cost of their policies has increased over the past year. Additionally, 69% were concenred about the affordability of their cover, while 55% felt they should be getting a better deal from their insurance providers.
The Wefox Global Safety Report also examined personalised insurance, revealing that 57 % of policyholders would prefer insurers to use personal data to tailor premiums to their needs. Interestingly, 47% believe their premiums punish them for elements beyond their remit, such as where they live or their choice of career.
Wefox wants to lead improvements in customer experiences through technology
Speaking about the latest findings, Julian Teicke, CEO and founder at Wefox, explained “Our first Global Safety Report has shown exactly what we at Wefox have known for a long time - the customer experience sucks - because the sector is not keeping up with the needs of today’s consumer.”
“The founding principle of our industry - to keep people safe - is as important today as it has always been. However, we believe that insurance can do more. It needs to go beyond protect and support. We have the power to help keep people safe and prevent risk. That’s the responsibility of our industry.”
He said that technology was playing a key role in transforming the industry for customers, which has previously been archaic and under-serving of their needs. “Insurance is an ancient industry that continues to be crisis resistant. Now is the time for the industry to step up and take care of our customers. The words used by the thousands of consumers we spoke to in compiling this report were that insurance is ‘unfair’, ‘complicated’ and ‘a waste of money’. That’s a long way from ‘protect’, ‘support’ and ‘keep me safe’.”
“Technology is transforming industries. Yet the greater part of the insurance industry has ignored the advantages and opportunities that technology can bring. At Wefox, we can see that by harnessing the power of technology to drive innovation we can revolutionise the way people not only think about insurance, but how they experience it
Teicke said that 55% of consumers who took part in the survey want the industry to offer digital and mobile services, just as banks do. He pointed out that Wefox already offers these benefits and that the rest of the insurance industry needs to “step up” for its customers.
He added, “People are now demanding a better customer experience that is simple, convenient and fast. We are already witnessing how technology is delivering a superior level of customer experience from ordering groceries, booking travel or simply paying for their coffee all at a click of a button. Insurance can do the same.”