90 percent of insurance customers are interested in sustainable products, but only one in four have already taken out one.

90 percent of insurance customers are interested in sustainable products, but only one in four have already taken out one.

Insurance customers have a strong interest in sustainable insurance products, but there is a large gap between supply and demand. According to a study, 90 percent of customers who want to take out a new insurance product in the next 12 months are interested in sustainable products. However, only 18 percent of those surveyed said they had been approached by an insurer about this topic. Currently, only 24 percent of insurance customers have at least one sustainable insurance policy. However, the willingness to pay more for sustainable products is low, as only 19 percent of those surveyed are willing to do so.

According to a report by EY EMEIA Financial Services, there is immense market potential for sustainable insurance products. However, insurance companies have so far been rather cautious and underestimated demand. For 82 percent of those surveyed, the topic of sustainability plays a relevant role in their next purchase decision, regardless of age, gender, education or income. For 84 percent of those surveyed, sustainability aspects are also relevant for insurance products.

There is a large customer base interested in sustainable insurance, but many customers do not know which insurance companies are particularly sustainable. 45 percent of this target group cannot name an insurance company that they consider to be particularly sustainable. Therefore, 56 percent of these respondents would switch to a new insurance company to get a sustainable insurance product. There is often a lack of communication and advice on this topic. Targeted advice and information from qualified agents are important in order to address and convince potential customers. According to the study, 78 percent of respondents think it is important that their insurance advisor has official certification for sustainable products.

Over 77 percent of those surveyed say they are willing to switch to a sustainable insurance product as long as there are no losses in benefits and conditions. In the 18 to 34 age group, this figure is as high as 81 percent. The reasons given for not switching are satisfaction with the current insurance and the effort involved in switching.

The results of the study show that the insurance market is facing fundamental change, driven by customers' need for sustainable products. Insurance companies must now exploit this market potential with credible and transparent product design and convincing communication before it is exploited by emerging InsurTechs.

Source: According to a report by www.ey.com