Ease of payment is now a top three decision factor for Gen Z and millennials when they are looking to purchase insurance.
According to research from Adyen and EY, 35% of Gen Z potential insurance customers reported that easy payment of insurance influences the actual purchase.
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This outweighed fraud concerns at 14% and security of information and data at 28%. The only higher thoughts were value for money (49%) and policy coverage (49%).
In addition, when exploring methods of payment, almost half of consumers polled (49%) said they wanted to purchase through mobile-first channels, and 35% look for the ability to pay using their preferred check out options like as digital wallets.
Nearly all (94%) of respondents stated they want to use credit cards, debit cards or digital wallets to pay online. Also, nearly three-in-four (74%) of those surveyed aged 25 – 34 said that a pre-paid card would be appealing to avoid being out of pocket during a claim.
However, the insurance industry stated that payment might not be the way forward for Gen Z or others.
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By GlobalData81% of insurance professionals said that while payments processing is important to the sector, the most impactful changes that could be made were:
- Improving error detection and resolution (41%);
- Increasing transparency and communication of payment statuses (32%), and
- Automating customer payment processes and reconciliations (30%).
“Customers today demand more than just coverage. They want smooth online payment processes that allow them to choose their preferred payment channels and methods”, said Adrian Davis, commercial leader, financial services and insurance at Adyen. “Yet, many insurers have a payment blind spot. By offering more seamless and flexible payment options, insurers could not only improve customer satisfaction but also drive significant business benefits—selling more policies, reducing operational costs, and cutting down on fraud.”
“It is essential that the insurance purchasing process is as easy and streamlined as possible to ensure no one is discouraged from protecting themselves against risk. Younger generations have grown up in a digital world, with increasingly simple and interconnected payment options available for all products and services, and the insurance sector must keep pace, and not risk losing new customers at the point of purchase,” added Chris Payne, EMEIA financial services insurance technology leader, EY.
