Finding financial well-being through cost-effective alternatives
Looking at life insurance and retirement, the top concerns can be directly linked to the health and financial impacts of the pandemic: fear of losing a loved one is by far the greatest concern, followed by financial well-being. In seeking financial security, consumers are most interested in products that cover loss of income, credit card bills and other existing financial commitments.
Given the heightened financial anxiety and focus on financial well-being, consumers are seeking cost-effective insurance alternatives, such as policies with lower premiums. They also express willingness to provide personal data or wear a fitness tracker in exchange for a discount or customized monthly rates.
More time at home creates new risks
From the perspective of personal lines, behavioral change brought about by the pandemic is reflected clearly in the results. For instance, cyber fraud as a result of increased time online was the respondents’ top concern, followed by paying for insurance for a car that’s being driven less. Consumers are also more interested in usage-based insurance and home-protection products.
Given that remote working is expected to continue for many employees, insurers should develop products suited to the “new normal,” such as home-protection and usage-based policies.