Providing trusted support
Those who have experienced the greatest financial impact are more inclined to plan for future financial uncertainty: they are more likely than respondents overall to develop an emergency plan, speak with a financial advisor and increase policy size/amount of coverage.
The study also identified the short-term measures used by those most impacted and found that almost two in five have had to withdraw from an investment or brokerage account to avoid hardship, again highlighting their financial vulnerability.
Despite this group’s focus on financial planning, since the onset of the pandemic, the majority of this demographic said that they have not been contacted by their insurance provider, and a majority of those who had life insurance also said they do not completely understand the extent of their life insurance coverage.
Although the most impacted customers have clear needs, the customers who are less impacted still need proactive attention from insurance providers: anxiety is high throughout the population, and addressing this anxiety is critical to deepening relationships and building trust. Even those who were less impacted have a high degree of concern about their financial well-being. They also do not fully understand their existing coverage and are looking to act to protect their future financial security.
Overall, there is a compelling opportunity for insurers to provide reassurance for customers through proactive communication and to develop closer relationships through communicating the value of insurance and providing appropriate solutions for their needs. This would include finding solutions for those undergoing significant financial hardship and who have limited means to purchase insurance or financial advice, as well as meeting the needs of the less-affected segments.
Why social responsibility and justice matter
Awareness of society’s impact on nature and the environment, as well as growing concern for social inequalities in the US, has had an inevitable impact on how we think about brands. There is growing evidence that consumers now want the brands they buy to reflect their own values. Consumer insurance vendor preferences have therefore evolved to include a focus on a firm’s commitment to corporate social responsibility (CSR) and social activism.
Overall, 7 in 10 consumers indicated that CSR was at least somewhat of an important brand trait to them when they considered providers. This is especially important to those who were most financially impacted by COVID-19, as we can see below.