99% of customers said that the quality of a product was important to them when purchasing insurance, while 98% prioritise affordability, according to new figures from The Exeter, the protection and health insurer.
The research also found that choosing a provider that offers good customer service and has a strong track record for paying claims was just as critical to customers, as 91% also stated the inclusion of additional benefits was important.
Although UK adults have a strong shared notion of what counts as an attractive insurance product, around half (48%) do not have insurance such as income protection, health insurance, life insurance or cash plans.
Isobel Langton, chief executive at The Exeter, said: “The findings from our research are clear: insurers must continue to work hard to ensure quality is not sacrificed for affordability.
“Finding the right balance is key. High-quality products, excellent customer service and a commitment to being a diverse and inclusive business are not optional extras.
“They are now key considerations that consumers rightfully expect of any insurance provider.”
The Exeter’s findings also show that diversity and inclusion is a growing consideration for insurance customers.
84% of adults consider it important for an insurer to incorporate clear diversity and inclusion values in day-to-day business.
Over a quarter (27%) of respondents reported that this was ‘very important’ to them, increasing to a third (33%) among those aged 18-24.
If insurers are keen to attract a younger customer demographic a commitment to diverse and inclusive business must become a key priority.
Over 75% of UK adults are confident that an insurance company will pay a claim for income protection, health insurance, or life cover.
However, just one in five (21%) were ‘very confident’ that this would be the case, demonstrating the need for greater education from the industry to reassure policyholders and potential customers.
Langton continued: “As a mutual insurer, delivering the best possible outcomes for our members is central to everything we do. But that doesn’t mean we can’t be even better than we currently are, and the new insights unlocked by our research give us further food for thought.
“We are committed to making insurance more accessible to more people, building trust in our industry, and ensuring we exceed the expectations of our members, both now and in the future.”
Charlotte Nixon, proposition director – mortgages and protection at Quilter Financial Planning, added: “When talking to clients, affordability and product quality are two themes that come up time and time again, and this research should help to drive this point home across the protection industry.
“It is positive to see that, overall, clients are confident in trusting an insurance company to pay a claim, reinforcing the value of these safety nets for both clients that have taken out a policy and those who are considering it.
“We need the sector to continue to provide the data, educational resources, and support for advisers so they can make these important conversations with clients as productive as possible.”
