Sustainability and insurance: Why customers in Germany miss a connection and insurers face challenges.

Sustainability and insurance: Why customers in Germany miss a connection and insurers face challenges.

According to a report by www.dasinvestment.com,

Sustainability has become more relevant not only socially but also economically in recent years. However, a current online survey by the market research institute Yougov Germany on behalf of the management consultancy Bearing Point shows that many consumers in Germany still do not associate sustainability and insurance. Only 10 percent of the consumers surveyed fully recognize a connection here, while for another 29 percent this applies at least depending on the individual case. Even though sustainability goals influence the personal actions of 47 percent of participants, they think more about practical environmental protection and energy saving than about their insurance policies.

Against this background, it is becoming increasingly difficult for insurance companies to address their customers about the issue of sustainability with their products. The study authors recognize a high level of skepticism towards companies in general and, in the case of insurance, this increases due to a general skepticism towards the industry. Customers think primarily about the company's behavior, including issues such as transparency, credibility and fairness.

Industry expert Giso Hutschenreiter, partner at Bearing Point, emphasizes that insurance companies need to work harder on their perception as companies in order to be able to score points with a sustainable product orientation. Furthermore, consumers expect socially desirable behavior with regard to sustainability to have a positive effect on the premium or return.

The survey suggests that customers do not have confidence in insurance companies' sustainability efforts. It is therefore becoming increasingly difficult to justify a higher premium or waiver of benefits. The environment for Germany's insurers is not getting any easier. The outlook for the next few years is not very positive, as there is little chance of standing out from the competition with sustainably oriented policies. According to Hutschenreiter, the insurance industry must therefore rethink strategically and focus more on the company and its fundamental actions in relation to sustainability. Despite society's desire for sustainability, this should not cost the insured anything if possible.

These developments show that the insurance industry in Germany is facing major challenges in terms of sustainability and will have to find innovative and customer-oriented solutions in the future.