If you want an insight into the varying consumer attitudes towards insurance and excellent way to get it is to pop over to Diana Clement’s article at this link and read through the comments. It was fascinating. I have summarised the different customer segments and their views here for you:
- Grumpy skeptics that think insurance companies don’t pay out so loudly pour scorn on the idea that you can rely on insurers, of all things. Only problem with this is the data. The personal lines insurance industry (that is, excluding general insurance) pays out $1 billion a year. Add general insurance, even if you took a ‘normal’ year which didn’t include a lot of Canterbury earthquake payments, and you can add another $2.5 billion. They can’t all be wrong. Yet still a voluble group – perhaps legitimately aggrieved – would rather choose the other side of the argument.
- Grumpy apologists: that think that no one would possibly resort to crowd-funding because of a failure to plan, it must be because the government is not providing sufficient benefits. I like their generosity of spirit, but in among the truly deserving cases there are some people who simply should have done better. But I do hope they can raise enough to get them over this hurdle.
- Smug planners that think most of the people trying to crowdfund their way out of trouble probably should have known better. This group bought all their own insurance, and think you should too.
- Unhappy Impoverished: usually low income families with children who are genuinely poor and would like to buy insurance but cannot afford it. They don’t like the implied criticism that they could buy the cover if they just organised better. They like to point out that they budget and don’t gamble, or have pay-TV, and they are often paying off a home loan.
Lessons for insurers are easy to spot in each category. Talk about claims, explain how you fit in with state benefits, praise planners, and try to deliver budget products for those that want cover but cannot afford it – yet.