wefox, an insurtech, has published the ‘Global Safety Report’. The results show widespread dissatisfaction and lack of trust in the global insurance industry in an era when the customer experience is at a click of a button.
It also shows that despite this sentiment and in the face of insurance rates and the rising cost of living, only 13 per cent of respondents would cut back on insurance, even if they were struggling to make ends meet, demonstrating the resilience of the age-old industry.
Julian Teicke, CEO and founder at wefox, said: “Our first Global Safety Report has shown exactly what we at wefox have known for a long time – the customer experience sucks – because the sector is not keeping up with the needs of today’s consumer.
“The founding principle of our industry – to keep people safe – is as important today as it has always been. However, we believe that insurance can do more. It needs to go beyond protect and support. We have the power to help keep people safe and prevent risk. That’s the responsibility of our industry.”
Teicke added: “People are now demanding a better customer experience that is simple, convenient and fast. We are already witnessing how technology is delivering a superior level of customer experience from ordering groceries, booking travel or simply paying for their coffee all at a click of a button. Insurance can do the same.”
wefox surveyed more than 12,850 consumers in Germany, Italy, Poland, Switzerland, the UK and the US. The results were illuminating. 48 per cent of respondents said the cost of their policies had increased in the last 12 months. 69 per cent were worried about being able to afford their policies in the future and 55 per cent didn’t think they were getting a good deal from their insurance provider.
Along with a clear appetite for technological change, the wefox Global Safety Report also shows an interest in personalised insurance with 57 per cent of policyholders wanting insurers to use personal data to tailor premiums to their needs. 47 per cent feel their premiums penalise them for factors outside of their control, such as postcode or profession.
Teicke said: “Insurance is an ancient industry that continues to be crisis resistant. Now is the time for the industry to step up and take care of our customers. The words used by the thousands of consumers we spoke to in compiling this report were that insurance is ‘unfair’, ‘complicated’ and ‘a waste of money’. That’s a long way from ‘protect’, ‘support’ and ‘keep me safe’.”
“Technology is transforming industries. 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
“55 per cent 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,” he continued.
The wefox Global Safety Report comes off the back of a recent series D funding round of $400million giving the company a post-money valuation of $4.5billion, a 50 per cent increase from the 2021 valuation of $3billion.