Building strong customer trust is important in any business. This includes the insurance business. When customer trust problems arise for an insurance company, the company could have trouble drawing in new customers or keeping their current ones. The company’s overall relationship with their customers could also be impacted, which could have a variety of negative implications.
How trustworthy do people view the insurance industry generally? Recent research indicates that this varies quite a bit between different demographic groups.
According to the research, which is from the company Mintel, trust in insurance companies is relatively high among individuals in the Millennial age group. Trust that insurance companies do the right thing for their customers is something that around three-fifths of Millennials have. Also, a little over half (53 percent) of people in this age group believe that insurance company trustworthiness is higher now than it was five years ago.
The research indicated, however, that insurance company trust is much lower among the general population. Among overall consumers, the percentage of individuals that trust insurers to do the right thing for customers was under half for both men and women. Additionally, a belief that insurance company trustworthiness has gone up in the past five years is something less than a third of general consumers had. Trust in insurance companies was particularly low among women; in both of the above-mentioned insurance company trust gauges for the general population, the percentages among women were lower than those among men.
Why do you think trust of insurance companies is particularly high among millennials and low among women? What do you think are the best ways for insurance companies to reach out to help improve trust among groups that are particularly distrustful of insurers
Many things can impact how trustworthy customers view a particular insurance company. This includes how the company handles insurance claim denials and disputes with policyholders over such denials. So, among the many things that can be at stake for an insurer when it comes to issues and disputes related to policy denials is the quality of their relationships with their customers.
Source: MediaPost, “Millennials' Trust Of Insurance Companies Rises,” Tyana Gazdik, July 13, 2016