and the lasting effects of a new risk paradigm on insurance consumers
The COVID-19 pandemic compounded uncertainty created by local and world events, such as severe weather, economic uncertainty, and civil unrest, altering consumers’ attitudes, perceptions, and behaviors across all product and service categories. To help our agents and brokers succeed in this environment, we sought to understand the new consumer mindset of successful families and individuals. Dive in to learn more about our research findings, insights into what clients are really thinking, and strategies to help meet their evolving needs.
As a premium insurer and a leader in the industry, Chubb continues to provide the latest insights and tools to our independent agents and brokers, helping them serve their clients better and grow in our changing world. Learn more about our research on how the pandemic and other recent events have affected successful families and individuals and their feelings about risk.
Watch Fran O’Brien, President of North America Personal Risk Services at Chubb, as she discusses insights following recent events and how it has changed the way successful individuals think about risk and insurance.
Hear from Peter Noel Murray, PhD, a consumer psychologist, on how emotions have evolved and affect insurance-buying behaviors, and what successful clients need from their insurance agents and brokers now.
Our research showed that trust in insurance companies, agents, and brokers is at a lower level compared to previous years. This issue of trust is compounded by the rising cost of insurance due to many factors, including more frequent and severe weather events, supply chain issues for automobile parts, and increasing costs of litigation and home construction materials and labor.
Yet trust is more important than ever to insurance buyers. And to earn that trust, prospects and clients expect more throughout the insurance-buying process than they have in the past.
We found that many prospective clients are looking for new solutions and approaches to prepare for an uncertain future and are more open to insurance reviews and reevaluation of insurance coverages. This presents an opportunity for insurance agents and brokers to build trust through transparency and engagement, and to communicate the role of insurance as a stabilizing factor in turbulent times by presenting options based on how they address the emotional needs of clients.
Agents and brokers who can recognize the client's emotional needs in the insurance-buying process will be able to establish a level of trust, which is the foundation for client loyalty and referrals.
Our research illuminated negative emotional effects created by recent events and showed a lack of trust in insurance companies, agents, and brokers. However, those who are able to create positive connections and deliver an improved client experience will enjoy a competitive advantage and long-term client relationships.
Clients are looking for transparency
This may come in the form of initial and ongoing reviews, explanations of the details of their coverage, and accessibility to their insurance agent or broker.
Clients want engagement
They’d like their insurance agent or broker to guide them through the insurance process, be a partner in the decision-making, and express empathy and understanding in their interactions.
Similar to other direct sales interactions, when consumers work with an insurance agent or broker, their experience influences their propensity to buy coverage, become a long-term client, be less price sensitive, and recommend others as potential clients. Therefore, it’s important for you to understand what an emotion-based "client experience" is and how to produce it for your prospective clients.
They may not like insurance, but they understand that not all insurers are alike.
All clients have an overwhelming desire for a better experience. That means, for agents and brokers who can make it happen, there is a tremendous opportunity for market growth.
In addition to understanding the existing perceptions about the insurance category as a whole that clients may bring when working with an agent or broker, the following describes the emotions that individual insurance products evoke in consumers and suggestions for our agents, brokers, and their teams to leverage in their sales practices.
Buying a home is a life-changing purchase and a major financial obligation. Clients feel like they don’t understand the insurance policy details but want insurance as part of their financial wellbeing.
Client experience tip: Acknowledge that you understand what the client is feeling and position insurance as a financial hedge against the liability the client is taking on, in the broader context of financial wellbeing. Take them through the details of the coverage, acting as a partner instead of an advisor.
Driving is a big risk. Clients perceive driving their car as the greatest risk and thus the most tangible need for insurance.
Client experience tip: Acknowledge the fear clients feel to help build a positive relationship.
There are two types of connections clients have with their valuables. For valuables that have financial significance, the emotion from their loss is one of anger. For valuables that have personal meaning, the emotion from their loss is one of grief.
Client experience tip: Engage with prospects and clients to identify the deeper associations with their valuables, then use understanding and empathy as you work with them.
Clients believe this type of insurance is a form of protection against future events that may present a risk to existing assets. Insurance would then be protection for the assets needed for a child’s future education, for example.
Client experience tip: Instead of focusing on the policy features, emphasize the personal circumstances that can benefit from a liability policy.
Mary Parsons, EVP from Chubb, and Peter Noel Murray, PhD, a leading consumer psychologist, discuss how recent events have changed the way successful families and individuals think about risk and insurance and how their emotions affect insurance-buying behaviors.
Learn how local and world events such as the pandemic, severe weather, economic uncertainty and civil unrest, changed the way consumers think about risk and purchasing insurance.
Help your clients who are in the market for insurance differentiate between carriers and discover what makes Chubb a better choice for successful families and individuals like them.
Agents and brokers are vital to Chubb’s success. To help you grow faster and more efficiently, we’ve created resource centers, tools, and programming you can use, and we are actively investing in research and partnering with industry experts to share with you the best ways to understand and work with successful families and individuals.