Previous research has suggested that a variety of payment options at checkout provides greater flexibility for customers, resulting in more completed purchases. Access PaySuite, the payments solution provider, has found that a similar trend emerging in the insurance sector, especially when it comes to attracting Gen Z customers.
The Access PaySuite study found that 80 per cent of Generation Z individuals agreed that diverse payment options would significantly influence their choice of insurance provider. Following closely behind, 77 per cent of Millennials also expressed a similar sentiment. In turn, these results show a greater desire for flexibility in the sector.
Sixty-two per cent of consumers report that being offered a wider choice of payment methods would positively impact their insurance provider choice with a further 69 per cent saying this also impacted which insurance premium they chose.
Commenting on the survey’s findings, Andrea Dunlop, managing director at Access PaySuite said: “As individuals who have grown up in the digital age, it comes as no surprise that Gen Z and Millennials have developed high expectations for the websites, apps, and software they engage with on a daily basis, particularly in terms of their interactions with them.
“In the ever-evolving landscape of consumer trends, the heightened expectations of younger generations serve as a guiding light for the future of commerce. Businesses and industries that can adapt and innovate accordingly will undoubtedly experience the greatest success in the years to come.”
Costs outweigh value
As the cost of living crisis continues, many consumers are finding that the costs of their insurance premiums no longer merit the coverage. Access PaySuite revealed that travel insurance (35 per cent), pet insurance (30 per cent) and health insurance (28 per cent) were the most likely to be cut due to affordability concerns.
These concerns could stem from the fact that many users have come across hurdles during their payments process. Thirty-nine per cent said that payments continued to be made without the user’s awareness, while 35 per cent said they had trouble cancelling payments. Furthermore, 33 per cent said they were overcharged and the same number of respondents reported that their payments failed to go through.
Due to these problems, factors influencing user’s insurance premium and provider choices are primarily secure data handling (42 per cent) and the ability to spread payments (35 per cent).
Safe and secure data
This is paramount not only for the end user but for the insurer too. The report also highlighted that rising inflation has caused many users to turn to fraud as a way of making ends meet. Data from the Financial Ombudsman Service reported that across all financial products, fraud and scam complaints have increased by 39 per cent in Q2 2023 compared to Q1.
Access PaySuite’s report proceeds to analyse insurance work environments and the importance of building a trustworthy company culture which is reflected in its payment process.
In the current economic climate, the report identifies ways in which insurers can make payments more user-friendly. It found that 18 per cent of consumers still prefer to pay over the phone and 28 per cent still like the human interaction that stems from talking to an agent.
Dunlop concludes: “Our research clearly demonstrates the increasing demand for diverse payment options within the insurance sector, with today’s consumers seeking 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 all, allowing seamless transactions for digital payment users and personalised support for those who prefer human interaction. Meeting these demands gives insurance providers a competitive edge in attracting and retaining loyal customers.”