Flexible Payment Options and Secure Data Handling Drive Insurance Choices
Recent studies have shown that offering a variety of payment options can increase flexibility for customers, leading to higher completion rates for purchases, according to The Fintech Times. Access PaySuite, a leading payment solution provider, has now discovered a similar trend in the insurance sector, particularly among Gen Z customers.
Access PaySuite’s research indicates that 80 percent of Generation Z individuals believe that having diverse payment options plays a significant role in influencing their choice of insurance provider. Millennials are not far behind, with 77 percent sharing a similar sentiment. These findings highlight a growing desire for flexibility within the insurance industry.
Furthermore, the study reveals that 62 percent of consumers believe that having a broader range of payment methods available would positively impact their choice of insurance provider. An additional 69 percent state that this also influences their selection of insurance premiums.
Andrea Dunlop, the Managing Director at Access PaySuite, commented on these survey results, saying, «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 daily, especially when it comes to 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.»
Amid the ongoing cost of living crisis, many consumers are reevaluating the worthiness of their insurance premiums in relation to the coverage they receive. Access PaySuite’s study reveals that travel insurance (35 percent), pet insurance (30 percent), and health insurance (28 percent) are the most likely to be reduced or canceled due to affordability concerns.
These concerns may stem from difficulties encountered during the payment process. Thirty-nine percent of respondents reported that payments were made without their awareness, while 35 percent faced challenges canceling payments. Additionally, 33 percent were overcharged, and an equal number of respondents experienced payment failures.
In light of these issues, factors influencing insurance premium and provider choices revolve primarily around secure data handling (42 percent) and the option to spread payments (35 percent).
This emphasis on secure data handling is crucial not only for consumers but also for insurers. The report highlights that rising inflation has driven some users to resort to fraudulent activities to make ends meet. Data from the Financial Ombudsman Service reveals a 39 percent increase in fraud and scam complaints across all financial products in Q2 2023 compared to Q1.
Access PaySuite’s report delves into the work environments of insurance companies and underscores the importance of fostering a trustworthy company culture, which should be reflected in their payment processes.
In the current economic climate, the report identifies ways in which insurers can make payments more user-friendly. Surprisingly, 18 percent of consumers still prefer to pay over the phone, and 28 percent value the human interaction that comes from speaking 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, including insurance policies. Insurers must adapt their offerings to capture new markets, including younger generations. Flexible payments provide convenience for all, allowing seamless transactions for digital payment users and personalized support for those who prefer human interaction. Meeting these demands gives insurance providers a competitive edge in attracting and retaining loyal customers.»