Economic and social shifts during the last decade have created a significantly different type of insurance consumer. The global financial crisis has led to falling incomes in real terms and a commercial slow-down in many markets. Consumers’ price sensitivity has sharpened, while their service expectations continue to grow.
This report looks at socio-economic shifts; technological advances and regulations which are changing the market; and the evolving expectations of today’s insurance consumers. It considers the impact for the insurance industry as a whole, and implications specifically for cooperative/mutual insurers. It describes how ICMIF members are seeking to understand customers’ needs and expectations, including a section about the types of research they are conducting.
It also identifies a number of opportunities for cooperative/mutual insurers to leverage their strengths to respond to changing consumer behaviours; to differentiate themselves from their competitors; and to create a sustainable competitive advantage.