Covid-19 pandemic increases awareness of insurance coverage – Guidewire

The pandemic has increased consumer awareness of insurance coverage, and almost one in three (31%) said that they would be more careful in understanding what their insurance policy covers.

This suggests that UK consumers are therefore questioning insurance terms and are more likely to insure against loss of job or income and digital identity post-pandemic.

This is according to Guidewire Software’s research findings from its UK consumer survey of 1,000 UK respondents, conducted in April 2020, to determine how the pandemic is affecting attitudes towards insurance and insurers.

Meanwhile, nearly three quarters (73%) of UK respondents ranked their digital identity as most important to protect along with their clothes (61%). Just over half (59%) said it was their job and income and only 35% said it was their jewelry.

Despite this, only 6% had online identity insurance or job loss cover.

Keith Stonell, managing director, EMEA at Guidewire Software, said: “Insurers are obviously sensitive to the current difficult climate we are all living in and having to adapt to new ways in how they run their business and interact with their customers and partners.

“The finding that interest in cover against online identity theft and job losses may have grown so considerably compared to pre-lockdown suggests the pandemic has made people more aware of the broader range of risks that they face today, than in the past.”

Insurer relations

Low take up of certain insurance categories could also change, with UK consumers almost three times more likely to insure themselves against loss of income or illness.

In addition to this, respondents were twice as likely to get cover for online identity theft, having been woefully underprepared before the crisis hit.

Stonell added: “The stresses of the past few months have clearly made many scrutinise their relationship with their insurer and the protection that they need.

“Many are doing great work in pivoting to offer help and support in the crisis while also being concerned about their colleagues’ own safety and having most of their workforce working from home. Lessons are being learnt that will shape the future of the industry.

“So, we’re optimistic about how the shock of forced change will be transformative for the industry as a whole.”

Meanwhile, the research also found that almost one in five (17%) believe that the industry did not do enough to help consumers in their response to Covid-19.

This is directly compared to those who feel more positively about their insurers because of actions taken to support their customers (12%) during the pandemic.

This is in addition to the one in four insurance customers (26%) who said they already had a less than positive opinion of insurers.

Read more…Covid-19 has polarised consumers on data sharing

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