Publisher's
“Customer Segmentation in UK Insurance: Individualism” focuses on one of eight
attitudinally based consumer segments in our proprietary model - individualism
- and explores this trait in relation to the market for key financial products.
There are two ways in which individualism can be viewed in consumers' approach
to their services: wanting the freedom to make their own decisions, and looking
for products that are personalized. These desires have an impact on all aspects
of the insurance purchasing journey.
Consumer
expectations for their interactions with financial services are not built from
experience with insurers or banks, but are benchmarked against contact with
other retailers and services, such as Amazon, Netflix, and Uber. The advance of
smart technology, the era of the “always on” generation, our willingness to
share personal information in return for a convenient and personal experience,
and the Big Data opportunities these create mean the bar is (and should be)
high to create delight for the 39% of consumers with a strong sense of
individualism.
- No
individual can simply be pigeonholed by a given characteristic: human behavior
is too complex. Decisions are made based on a blend of different
considerations. By extension, there will always be levels of overlap within our
segmentation framework that should be understood and considered.
- Products
or services that cater to a trend crossover offer consumers multiple benefits
and will be attractive to a wider range of consumers. Even for sub-trends that
do not cross over with another trend, it is important to remember that trends
do not exist in isolation.
Key Findings:
- A little
under half of all customers wish to be empowered to make their own decisions
around insurance purchasing.
- Tailoring
and bespoke products are only in high demand from a small proportion of
customers, but we expect this will be one of the traits that experiences the
most rapid shift towards prominence over time.
- Customers
who may be defined as belonging within the individualism type are most likely
to be older, and are less likely to use bank or comparison site channels for
insurance or be led by considerations of convenience.