Faster claims and online processing 'top priority' for customers amid COVID-19: Swiss Re

Swiss Re's COVID-19 survey finds that financial anxiety and demand for insurance products has accelerated in the Asia Pacific region following the outbreak of the global pandemic.

More than a quarter of the respondents were "anxious" and "overwhelmed" about their finances at this time while around 40 percent in all markets surveyed said they were "stretched but coping".

The reinsurer found that respondents preferred speed, simplicity and fulfilment over financial savings when it comes to insurance policies.

Furthermore, the ability of an insurer to process policies and claims online was found to be a "top priority", while processing policies online from start to finish was a "top consideration for selecting an insurer".

Swiss Re also learnt that among those who reviewed their policies, half discovered unknown benefits, some of which could help during COVID-19.

“From the survey, we can see that there is a priority to keep insurance policies in times of extreme stress like COVID-19," said Russell Higginbotham, CEO of Swiss Re Asia.

“We have also learnt that consumers value service and access most highly. Chinese insurance companies seem to stand out as an example for the rest to follow, especially in how they engage their customers," he added.

The survey conducted in four APAC markets, including Australia, Singapore, Hong Kong, and China, also revealed that more Australians were willing to sacrifice their life insurance over home or car insurance, while in mainland China and Hong Kong very few were willing to forgo their life insurance payments. Swiss Re explained only a quarter in Singapore and one in five in Hong Kong would let go of their home/car insurance if pressed financially.

In China, 85 percent expect that insurance companies would pay out valid claims. In contrast, the figure was 54 percent for Australia, while Hong Kong and Singapore stood at 56 percent and 59 percent, respectively.

While respondents in Singapore, Hong Kong and China preferred faster claims payments and more flexibility, Australians preferred to have their premiums paused, or benefit from a discount on future insurance purchases.

“The pandemic environment raises awareness of people's needs for protection. The results of our survey give us a lot of clues about these needs and consumer preferences going forward," said Higginbotham.

“This is a great moment for the insurance industry to put the customer at the centre of everything we do and deliver solutions that at last show progress in closing the protection gap and making society more resilient," he concluded.