Opening the Door for
Insuretech Startups
If established insurers are going to evolve in the next
stage of the customer revolution, they must come to terms
with some pretty heady facts. The first is that customers
struggle with issues of trust. Recent unease over the
use of consumer credit scores in determining premiums
and a subsequent petition demanding greater pricing
transparency is proof that many customers are not ready to
commit their full trust to insurers.
If that isn’t enough to convince incumbents that they
have some issues to address, then consider how trust
is impacting customer satisfaction. J.D. Power reveals
that rate hikes resulted in a 7 point decline in customer
satisfaction over the course of a year. In the absence
of easily understood pricing formulas, consumers see
escalating premiums as another ambiguity, resulting in
more than half of customers saying they would switch
carriers to save $250 or less in premiums.
Insuretech Startups
If established insurers are going to evolve in the next
stage of the customer revolution, they must come to terms
with some pretty heady facts. The first is that customers
struggle with issues of trust. Recent unease over the
use of consumer credit scores in determining premiums
and a subsequent petition demanding greater pricing
transparency is proof that many customers are not ready to
commit their full trust to insurers.
If that isn’t enough to convince incumbents that they
have some issues to address, then consider how trust
is impacting customer satisfaction. J.D. Power reveals
that rate hikes resulted in a 7 point decline in customer
satisfaction over the course of a year. In the absence
of easily understood pricing formulas, consumers see
escalating premiums as another ambiguity, resulting in
more than half of customers saying they would switch
carriers to save $250 or less in premiums.