To win customers, the insurance market must go beyond traditional protections
EXCLUSIVE – To understand the main reasons that lead Brazilians not to take out insurance, Youse commissioned a survey for Opinion Box, which interviewed 412 people who do not have insurance in all regions of Brazil. Prices or lack of financial condition are among the main factors cited among policyholders.
“Our main objective in commissioning the survey is to understand consumer needs and democratize insurance. We also want to change the view of those who feel calm even though they don’t have any type of insurance, as it is the market’s duty to show the benefits and importance of investing in this service, which guarantees stability and is an investment for families”, says Uribe Teófilo, Product and Design manager at insurtech.
Spending cuts, pandemic and unemployment were the main reasons for survey respondents not to have insurance. Nilton Dias, Seguralta’s Commercial Director, says that the insurance is the guarantee of protection capable of covering the necessary and immediate expenses arising from unforeseen events. “Many people look at insurance as an extra expense, but in reality, the price of protection is a much smaller investment than the expense of repairing a preventable problem. Thus, in the event of a sudden absence or loss of property, the client and his family will be immediately protected by the policy”.
According to the survey, in the case of Auto Insurance specifically, almost half (49%) of the uninsured cited cost cutting as the main reason for not having the service at the moment. 19% talked about the pandemic, 16% about using the car little, 12% are in the research phase and another 10% said that unemployment is the reason. “The strategies adopted by insurers to keep customers active were to facilitate payment methods, increasing the number of interest-free installments (both in credit card and debit account). In the case of brokers, the option chosen is to reduce some assistance such as towing and window repairs, since the vehicles are not being used during the period”, says Dias. He points out that by doing this, companies reduce the price of insurance and the customer maintains coverage.
Among the main reasons for having insurance, respondents mentioned trusting the company (33%) and solving everything on their own via cell phone (28%). For Rodrigo Borges, Commercial and Life, Pension and Elementary Branches superintendent at Seguros Unimed, this is a trend accelerated by the pandemic, and the insurance sector must invest in actions that provide a better customer experience. “Here at the insurance company, innovation and customer focus guide all our actions. The Omnichannel project, whose objective is to deliver a unique experience in consumer interaction with our services, with a harmonious and unified vision in all the means through which they interact with the company, is one of our priorities in the coming years”.
The Youse survey also pointed out that more than half of the people interviewed who do not have insurance plan to hire one in the future (57%), with a greater preference for Auto (32%), Life (26%) and Residential (19% ). Borges believes that people are desiring these products more as they serve to protect their heritage and family. “When you hire a Life product, for example, it doesn’t mean that the only ones benefiting from it will be the owner’s dependents. These insurances offer a series of facilities for the insured’s routine, such as 24-hour technical assistance, benefits for pets, discount club and assistance in the correct disposal of objects”.
Most of the interviewees for the study (53%) belong to classes D and E, with income equal to or below R$ 3,636.00. Teófilo says that to protect this part of the Brazilian population, the insurance market needs to innovate and think beyond traditional protections, developing products with lower acquisition and maintenance costs for the consumer. “We need to be able to inform society about the degree of prosperity that insurance can offer people. If we manage to introduce this type of culture in Brazil, we can dream of a more accessible sector for everyone”.