Previous research has indicated that a variety of payment options at checkout provides greater flexibility for customers, leading to more completed purchases. Access PaySuiteThe payroll software company found that a similar trend is emerging in the insurance sector, especially when it comes to attracting Gen Z customers.
The Access PaySuite study found that 80% of Gen Z members agreed that diverse payment options would significantly influence their choice of insurance provider. Immediately afterward, 77% of millennials also expressed similar sentiments. In contrast, these results show a greater desire for flexibility in this sector.
62% of consumers said that having a wider choice of payment methods would positively impact their choice of insurance provider, while a further 69% said this also impacts the premium they choose.
Commenting on the survey results, Andrea Dunlop“As individuals who have grown up in the digital age, it’s no surprise that Gen Z and Millennials have high expectations for the websites, apps and software they interact with every day,” said Access PaySuite Managing Director, “Especially for their interactions with them.
“In the ever-evolving landscape of consumer trends, the rising expectations of younger generations are a guiding light for the future of commerce. The companies and industries that can adapt and innovate accordingly will undoubtedly achieve the greatest success in the years to come.”
Costs outweigh value
As the cost of living crisis continues, many consumers are finding that their insurance premium costs are no longer worth covering. Access PaySuite revealed that travel insurance (35 percent), pet insurance (30 percent), and health insurance (28 percent) were most likely to be reduced due to affordability concerns.
These concerns can stem from the fact that many users have encountered hurdles during the payment process. 39% of them said that payments continued without the user’s knowledge, while 35% said that they had trouble canceling payments. Furthermore, 33 percent said they were overcharged, and the same number of respondents reported that their payments did not go through.
Because of these issues, the factors that influence user insurance premiums and provider choices are primarily secure handling of data (42 percent) and the ability to distribute payments (35 percent).
Safe and secure data
This is critical not only to the end user but to the insurance company as well. The report also highlighted that high inflation has prompted many users to resort to fraud as a way to make ends meet. Data from Financial Ombudsman Service It reported that across all financial products, fraud and fraud complaints increased by 39 percent in the second quarter of 2023 compared to the first quarter.
The Access PaySuite report sets out to analyze insurance business environments and the importance of building a trustworthy company culture that is reflected in its payment process.
In the current economic climate, the report identifies ways insurers can make payments more user-friendly. It found that 18 percent of consumers still prefer to pay by phone, and 28 percent still like the human interaction that comes from talking to an agent.
Dunlop concludes: “Our research clearly shows the growing demand for diverse payment options within the insurance sector, as today’s consumers are looking for convenience and flexibility in managing all their payments, and paying for insurance policies is no exception.
“Insurers must adapt offerings to capture new markets, including younger generations. Flexible payments provide convenience for everyone, allowing seamless transactions for digital payment users and personalized support for those who prefer human interaction. Meeting these demands gives insurers a competitive advantage in attracting Loyal customers and retention.
Frances Pennell