Whether we’re looking to safeguard our cars, homes, pets or teeth, insurance is meant to offer financial security and peace of mind. But if most Brits believe that going without insurance is a risk, they don’t necessarily count on insurance providers to keep their end of the bargain when things go wrong.
YouGov’s latest whitepaper, Better safe than sorry, reveals that just 12% of Britons hold no form of insurance cover, and 82% disagree when asked whether insurance “is for unlucky people.” However, over two-thirds of policy holders (68%) believe that providers will do whatever they can to avoid paying out in the event of a legitimate claim.
Insurance infidelity: most consumers looking to change providers
Customers clearly don’t trust their providers – so it’s perhaps unsurprising that many are looking to make a change. Almost three-quarters of policyholders (73%) say they’re actively shopping around, and only 6% say they intend to “stick with [their] existing insurer.”
The least loyal customers are those with comprehensive motor insurance and joint home/building and contents insurance. Within both groups of policyholders, almost a third (31%) intend to change provider within the next 12 months.
So what might influence a decision to switch? Level of cover is the most important consideration across all categories – with cost ranking second in motor, building/contents, and mobile phone insurance, and no lower than fifth across all other categories. Even if it’s not the top priority overall, a good deal on premiums is nevertheless a key motivator for customers who intend to switch: of those “actively” and “very actively” shopping around, most use price comparison websites as their first port of call (87% and 92% respectively).
Policyholders are most loyal when they’re not paying
Those with private dental and medical cover are most likely to stick with their providers: just 1% and 2% respectively are searching for a better deal. Dental and medical policies are usually provided by employers – so the most “loyal” insurance customers appear to be those who aren’t paying for it and don’t have a choice in the matter.
Overall, most consumers don’t trust insurers to pay out, don’t intend to stick with them, and are actively looking for alternatives – except when they’re not bearing the cost. With insurance ranking 34th out of 41 industries in YouGov’s BrandIndex Recommend metric, it’s clear that providers could do more to generate confidence with the British public.
Download the full whitepaper