Above all, it is the young target group that can hardly be reached without digital offerings - across all industry sectors. This also applies to the insurance market. A study by Germany's leading digital association Bitkom showed that potential policyholders under the age of 30 can articulate fairly concrete ideas about the digital services they expect to receive.
Bitkom survey: Young customers want digital insurance services
Above all, it is the young target group that can hardly be reached without digital offerings - across all industry sectors. This also applies to the insurance market. A study by Germany's leading digital association Bitkom showed that potential policyholders under the age of 30 can articulate fairly concrete ideas about the digital services they expect to receive. The majority of the interviewees under 30 years would like to avoid paper-based communication and prefer to be contacted exclusively digitally. Almost two thirds would like to have an overview of all insurance companies in an app. The processing of insurance claims should also be kept as digital as possible. "Digital offers are already indispensable for insurance companies today and will become even more important in the future," says Fabian Nadler, expert for digital insurance and InsurTechs at Bitkom.
New competitors for established insurance providers
Not only startups are likely to provide stimulus in the market of the future. In addition to up-coming InsurTechs, Germans also see other players who want to challenge the incumbents. As in the banking sector, leading tech giants could soon also enter the insurance market. Will there also be comparable offers to Apple Pay and Google Pay for insurances? At least a large proportion of respondents believes this. More than a third of the study participants can already imagine buying an insurance distributed by a digital tech company in the future. Among the younger respondents the acceptance is exceptionally higher. Almost 50 percent (30 to 49 year olds) or even almost 60 percent (16 to 29 year olds) have no reservations against them.
Established insurance companies, however, hold a trump card that the tech giants and InsurTechs do not have yet. The interviewees feel well informed about their insurance coverage across all age groups. An important component of this good knowledge is probably the detailed advice provided by experts. Fabian Nadler comments on the results of the study with the words: "Insurance companies today still have the advantage of being in possession of the customer interface and they can often benefit from many years of experience about the wishes of the insured. If they combine digital technologies with the development of new products and services on the basis of their data resources, they can even extend their competitive advantage."
On 22 & 23 May 2019, we will discuss the latest developments and future challenges with over 500 experts, practitioners and users from the international financial sector at the Digital Finance Conference in Berlin. Join us in discussing the banking and insurance world of tomorrow at the Pioneers’ Eve on May 22 and the Digital Finance Conference on May 23. We look forward to welcome you!