European insurtech firm wefox has published its Global Safety Report, which revealed “widespread dissatisfaction and lack of trust in the global insurance industry” despite the availability of technology that is supposed to improve the customer experience.
The survey involved more than 12,850 consumers in Germany, Italy, Poland, Switzerland, the UK, and the US. Forty-eight percent of respondents said the cost of their policies had increased in the last 12 months, while 69% were worried about being able to afford their policies in the future, and 55% didn’t think they were getting a good deal from their insurance provider.
According to Julian Teicke, CEO and founder of wefox, many respondents have described insurance as “unfair”, “complicated”, and a “waste of money”.
Despite this sentiment, and amid rising cost of living and insurance rates, only 13% of respondents said they would cut back on insurance, even if they were struggling to make ends meet. According to wefox, this demonstrates the resilience of the insurance industry.
The survey revealed interest in personalised insurance, with 57% of policyholders open to insurers using personal data to customise premiums to their needs. Almost half of respondents (47%) felt their premiums penalise them for factors outside of their control, such as postcode or profession.
“Technology is transforming industries,” Teicke said. “Yet the greater part of the insurance industry has ignored the advantages and opportunities that technology can bring. At wefox, we can see that by harnessing the power of technology to drive innovation we can revolutionise the way people not only think about insurance, but how they experience it.
“Fifty-five percent of consumers who took part in our survey want the industry to offer digital and mobile services, just as banks do. Our customers can use these options. We cannot allow the customer insurance experience to continue to suck. The insurance industry has to step up. The time is now.”