Berlin-based InsurTech wefox has published a report revealing a widespread dissatisfaction and lack of trust in the global insurance industry.
The report, titled the ‘Global Safety Report’, surveyed more than 12,850 consumers in Germany, Italy, Poland, Switzerland, the UK and the US.
The report found consumers thought of insurance as “unfair”, “complicated” and a “waste of money.
Other results revealed that 48% of respondents said the cost of their policies had increased in the last 12 months. 68% percent 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.
Despite these findings, the report also showed that despite this sentiment and in the face of insurance rates and the rising cost of living, only 13% of respondents would cut back on insurance, even if they were struggling to make ends meet, demonstrating the resilience of the age-old industry.
Along with a clear appetite for technological change, the wefox Global Safety Report also showed an interest in personalised insurance with 57% of policyholders wanting insurers to use personal data to tailor premiums to their needs.
In addition, 47% feel their premiums penalise them for factors outside of their control, such as postcode or profession.
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.”
People are now demanding a better customer experience that is simple, convenient and fast, Teicke continued, technology can help insurance deliver this.
The report follows the close of wefox’s Series D funding round, which saw it raise an eye-watering $400m.
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