But this was not true in all areas. Young participants in particular expressed interest in policies in which driver use or behavior is taken into account in the risk assessment. They also tend to be more drawn to a streamlined user experience, whether it’s online or on their phone.
“As digital natives, it’s our bread and butter to create an enjoyable user experience and also to have the ability to understand how customers interact with our product and make a difference quickly,” Kashi said, of VOOM Insurance.
This is true in the sales as well as the complaints process. Increasingly during the pandemic, traditional insurers and insurtechs have developed technology to accelerate and digitize claims for coverage. But many newer companies have yet to set a customer support record.
“Some of the more advanced insurtechs are definitely pushing the boundaries of streamlining the process, and insurers are going to follow their lead,” Friedman said. “At the end of the day, ease of purchase and price are very important factors, but where the rubber meets the road, that will be what happens when they need you. It all comes down to, in a moment that matters, how good has the claims experience been? did they pay? Did they hold back and only give me partial payment? “
The aversion to new types of insurance may also be linked to the fact that a large number of policyholders are entitled to discounts by combining their auto insurance with other forms of protection, such as home or life. Unless new insurance providers, like VOOMs around the world, are able to grow and offer insurance across multiple industries, they might find it difficult to pull a large segment of the market away from traditional providers, Friedman said.