Key insurers are defining new revenue channels while contributing to the community along the way. It is defined as comprehensive insurance, a concept that plays an important role in the evolution of the insurance industry.
Generali and Allianz: Take two major global carriers created by Generali. Human Safety Netto support families living in vulnerable situations. Allianz has created insurance offerings for immigrants living in Europe. These insurers understand that inclusion at all levels is an urgent priority. The World Bank Group considers financial inclusioncomprehensive insurance is a financial service term for umbrellas, an important enabler to reduce extreme poverty and increase shared prosperity. People from women, minority groups, and low-income communities Statistically underserved or excluded population in the insurance market. This is important to keep in mind as underserved customers feel pressure from the current macroeconomic environment. The need for affordable coverage is growing, suggesting an increase in opportunities for insurers with the right products and services. If we consider this statement as an insurance company, our mission is clear. Being financially inclusive allows us to increase the premium growth of our sector while better protecting the individuals and communities we serve. Comprehensive insurance is an opportunity for revenue growth. It is not a CSR-only initiative.
Two important ways to comprehensive insurance provide new revenue streams for insurance companies
Inclusive insurance in the retail insurance market creates a pathway to protecting those who have otherwise been marginalized, creating opportunities for insurers to expand and acquire that market. Two key points of impact are:
1. Attract new customers to traditional products
As insurance companies expand their circle of protection, they open the door to new customers. First, insurers can provide consumers with new, accessible points of attachment. Previous uninsured consumers in this segment show that they don’t know where to start in the insurance process. They are not historically similar to typical insurance consumers, and we know that these consumers can simply assume that they are not eligible to take out insurance without any further knowledge of how to determine eligibility. It is important to remember that in this context, emerging consumers differ from other segments. That’s why it’s important in that you may be accessing family, colleagues, or community to showcase and introduce financial protection markets. Fortunately, the explosion of access through online, social and app-based engagement left us with not many options to try to reach a community that is lacking or excluded with services. Insurers who use these channels to connect with consumers to influence their behavior through an omnichannel approach are positioning themselves to succeed in capturing available market share. It is the power of transformation driven by simple engagement education that creates market winners for careers and consumers.
Insurance companies also have the opportunity to change the perception that underserved consumers have insurance providers. The 55% sample average for a US sample is the average for middle- and high-income consumers who own home or car insurance, and recommends insurance companies to others. This is comparable to just 46% of low-income consumers (scores 9 and 10 on the 10 scale range).
2. Create new products that meet the needs of new customers
A. Expand your customer base
As mentioned above, in addition to attracting new customers to traditional/existing products, companies can also expand their customer base by creating new products/services that meet the needs of unserved or excluded consumer markets (e.g., low-cost products or products with short-term coverage).
for example, Allianz’s emerging consumer business It aims to provide insurance to the poorest segments of the economy. They run the program across their footprint, including Europe, which includes a variety of insurance products (covering foreign families), life insurance (terms, credits, savings combined life), and personal loans and auto insurance that require vehicles to travel to access work in France.
Making insurance more accessible is a clear victory and may seem like an intuitive part of your growth strategy. Historically, however, this level of inclusion has not existed.
B. New products and distribution
Create creative distribution with the sought, innovative new products and data and analytics: Comprehensive insurance offers exciting opportunities for distribution and innovation across products. Insurers can work with the landscape of current services to expand coverage to underserved markets through creative distribution that serves concerts rather than competition, and insurers can create new or evolved products with a variety of coverages truly tailored to the needs of the segment.
Take a look at the Home Insurance Market, for example. The national average for homeowners insurance is found to be $1,854 (for $300,000 residences). On average, Homeowners in low-income areas pay an additional $117 for their home insurance It tends to be more pronounced in the largest cities of the 34 US states than in residents of wealthy districts. Despite these consumers paying more, they are overinsured for the part of their policy that they are underinsured due to their needs and are almost unlikely to use (e.g. flood coverage in non-rich zones).
“Extra Charge” low-income homeowners represent about 1% of the median income average across the lowest income neighborhoods in the largest cities. This figure can reach 11% in some states.
European market opportunities
In one example of 2021, European insurance company charity worked with Accenture to create a business case to develop a comprehensive insurance solution that solves the “protective gap” (difference between economic and insurance losses), preventing young families and immigrants trying to build economic resilience. Accenture conducted internal and external analyses to help the Foundation understand the market opportunities, investment potential, and social and financial impacts of comprehensive insurance. The market opportunity for Europe of approximately 250 billion euros was revealed through changes to new insurance products and premiums. As ESG trends are destroying the market, it was calculated that premiums between 188 billion and 385 billion euros will compete in Europe until 2025. Amid this massive market opportunity, clients have begun to explore comprehensive insurance opportunities, particularly valued between 4 billion and 14 billion euros.
Conclusion:
There is no doubt that financial inclusion is a prominent topic of debate among consumers, governments and regulators. G20 He expressed his commitment to financial inclusion and promoting a diverse leadership team in insurance that represents all interest groups. By accepting comprehensive insurance, companies not only establish themselves as industry innovators, but also for future business. Inclusion restrictions By doing everything necessary to innovate for the historically excluded consumer segment and ensuring it is an essential business requirement for growth. Inclusive Insurance provides clear opportunities for insurers to support and protect individuals, businesses and society while enhancing revenue, embodying the core values of the industry, increasing economic opportunities for the sector. If you want to know more about how insurance companies can continue to see the people behind their policies, build and grow relevance, read on Insurance Consumer Survey. If you want to discuss in more detail, Heather Sullivan or Nina Munoz.
