Retail insurance marketers need to adapt to secure consumer loyalty, according to a report by Love2shop.
The survey of UK adults said only 30% of consumers trust their insurance companies, prompting them to regularly switch insurers to seek out the best deal.
However, the report said over half of those surveyed would be motivated to stay loyal in return for monetary incentives, such as year-on-year premium reductions.
“Long-term ‘benefits’ have become synonymous with the insurance industry – offering people deals such as two-for-one cinema tickets or discounted restaurant meals for a year in return for taking out a policy.
“But UK consumers are no longer paying them much attention. Those we surveyed said those incentives simply don’t attract them,” said the report.
A further 36% of those surveyed could be incentivised to remain loyal for “good behaviour” rewards, such as good driving or living healthily.
The report added 69% of adults – around 33 million in the UK – feel undervalued by their insurance providers.
Making insurance accessible and engaging is crucial to ensure customers understand the value of the product and maintain loyalty to brands, said the report.
However, 73% of women and 60% of men admit to struggling with insurance policy jargon, creating a barrier to engagement.
Love2shop is a UK-based incentive, reward, recognition, and gifting organisation.