Jun 15, 2023
Trust in Traditional Insurance Providers vs. Insurtech Startups by Age
As discussed in a previous post with polling data for shopping preferences by demographics, the digital revolution has brought about a multitude of changes, and the insurance industry is no exception.
Insurtech startups, which leverage technology to offer insurance products and services, are on the rise. However, our recent survey results indicate that traditional insurance providers are still the most trusted amongst consumers across all adult age groups. Even though the integration of technology into insurance has streamlined processes and increased accessibility, it seems that the reliability and credibility of established insurance companies continue to outshine the innovative flair of Insurtech startups.
The age group that shows the most openness towards Insurtech startups is those between 25 and 34 years old. Nonetheless, it's important to note that nearly 80% of these respondents still prefer traditional means of obtaining insurance products. This might be due to a number of factors such as familiarity with traditional processes, the perceived security of established insurance firms, or the complexity of insurance matters that discourage a complete shift to a digital platform.
A surprising insight from the survey is the behavior of the 18-24 age group. It's logical to assume that as digital natives, they would be more inclined to engage with Insurtech startups. However, these young adults seem to be cautious when it comes to insurance. They are more likely to trust traditional insurance channels, possibly due to the complexity of insurance matters and concerns over understanding all the necessary details. Additionally, they might also be influenced by their parents who most likely have more experience with traditional insurance companies. This indicates that even in the digital age, the adoption of new technologies is not a given; it's influenced by the nature of the product or service, the complexity involved, and the perceived reliability of the provider.
Source: Breeze | Pollfish