Most consumers purchase insurance from a variety of providers, but data suggests they want to simplify the process: According to a PYMNTS Intelligence survey, 44% of all consumers will turn to a financial institution (FI) to meet these needs.
Younger consumers are especially keen to purchase these services from financial institutions – for example, Gen Z consumers are 43% more likely than average to consider purchasing insurance from a financial institution – and their interest could be enough to shake up the status quo.
these are”Why do consumers seek insurance from financial institutions?“, PYMNTS Intelligence and Franklin Madison Collaboration. The report explores consumer perceptions of financial institutions as insurance providers. It is based on findings from a survey of 2,195 U.S. consumers conducted March 22-March 28.
Other key findings from the report include:
Consumers need insurance, and they prefer to get it from a convenient source.
According to our data, the average consumer has 3.7 types of insurance coverage. Affluent consumers are a bit more likely to have 4.4 types of insurance coverage on average. Most consumers have health insurance (78%) and auto insurance (75%). Outside of essential insurance, there are a variety of specific types of insurance that consumers seek, including life insurance, pet insurance, travel insurance, and more. This report delves into the types of insurance that consumers most want to obtain from their financial institutions.
Nearly half of consumers are interested in purchasing insurance from a financial institution, with Gen Z and millennial consumers more interested.
44% of consumers are interested in purchasing insurance from a financial institution. This number rises to 63% for Gen Z and 60% for Millennials. Consumers who purchase these services from a financial institution are more likely to become repeat customers. In fact, 76% of people who have purchased insurance from a financial institution are interested in purchasing more in the next 12 months.
Trust in a financial institution is a key reason why consumers consider purchasing from them.
Trust is the primary driver for consumers’ interest in purchasing these services from a financial institution. In fact, consumers cite trust as a reason at 39%, more than twice as often as cost (19%). The report also includes insights into why consumers are not interested in relying on financial institutions for insurance.
Financial institutions have an opportunity to become a one-stop shop for all aspects of consumers’ financial and insurance needs — and consumers are warming to the idea. Download the report to learn more. Consumer interest The status of the financial institution as an insurance provider.