"Zero Touch" Insurance: New Approaches Meet With Growing Interest
"Zero Touch" combines embedded insurance, which is integrated into the purchasing process of a product, with parametric models that settle claims automatically and are based on data. Younger and tech-savvy customers are particularly interested in such new insurance solutions without direct interaction with insurers. These are the findings of a representative study conducted by the ZHAW School of Management and Law (SML) in collaboration with Zühlke and Synpulse. Through a survey, the study examined the acceptance of "zero touch" insurance in the areas of personal mobility and housing among 1,600 private customers in Switzerland.
Growing acceptance for embedded and parametric insurance
A third of respondents (34%) can envisage an embedded motor vehicle insurance policy integrated into the vehicle purchase, while 18 percent would prefer a similar solution for household contents insurance. The possibility of automated, parametric claims processing has also met with a positive response – 33 percent are open to the idea of parametric motor vehicle insurance, and 24 percent to parametric household contents insurance. This means there is a relevant demand for insurance solutions without directly interacting with the insurance company.
Strong demand from younger clients and specific personality types
The preference for interaction-free insurance solutions varies considerably between different customer groups. Here, both socio-demographic factors and personality traits play a role. It is particularly noteworthy that embedded and parametric insurance policies are attracting significant interest, especially among younger target groups. There are also differences in the personality types, whose motives vary. For example, people with a greater willingness to cooperate and a high level of trust show an above-average interest in embedded motor vehicle insurance (38 percent) and parametric claims processing in motor vehicle insurance (38 percent).
Innovative products tailored to customer needs
This study gives insurance companies essential insights into customer preferences and clearly shows that insurers must adapt their strategies to changing client needs. A precise understanding of the differences in customer needs is necessary to develop sustainable solutions. "In addition to socio-demographic characteristics, psycho-graphic factors also play a decisive role in customer behavior and should receive greater attention in the future," says Dr. Pirmin Mussak, the study's project manager.
Contact
Dr. Pirmin Mussak, Senior Lecturer, Institute for Risk & Insurance,
ZHAW School of Management and Law,
phone +41 (0) 58 934 68 44, e-mail pirmin.mussak@zhaw.ch
Valerie Hosp, Communications, ZHAW School of Management and Law,
phone +41 (0) 58 934 40 68, e-mail valerie.hosp@zhaw.ch