BERLIN--(BUSINESS WIRE)--A recent survey reveals that consumers all over the world are worried about the rising cost of insurance premiums. Among the American consumers surveyed, 70% indicate that they are worried about paying for the rising costs of their insurance premiums and that nearly 40% of those that have cancelled policies did so because they could no longer afford them. The wefox Global Safety Report, conducted by Berlin-based digital insurer wefox, included more than 12,000 consumers in the UK, US, Poland, Italy, Switzerland, and Germany.
“The current model for insurance is broken and in urgent need of radical reinvention,” said Julian Teicke, CEO, wefox. “The industry has failed to embrace the opportunities that technological change has given us. In focusing exclusively on profits, the sector has become complacent and lost sight of its original purpose—to protect people in their time of need.”
The survey further reveals:
- 48% of consumers surveyed indicate that the cost of their policies increased in the past 12 months
- 15% of policy holders do not trust any providers, with 33% saying that an insurance company has refused to pay out on the holder’s claim. Car and health providers are trusted the most, critical illness and income protection the least.
- Almost 30% of consumers believe that the insurance industry is complicated; 13% describe it as “unfair”; and 12% believe it is a waste of money.
- 47% believe that insurance companies unfairly penalize consumers for factors beyond their control, such as the zip code where they live or industry in which they work.
- Half of those surveyed would like to use more flexible options, such as “insure-as-you-go.”
- Car insurance leads as the insurance held by the majority of respondents at 61%, followed by Health at 55%, and Life at 37%.
This report is the first in what will become a semi-annual survey. The next report will be fielded in December 2022.
Download the full report and infographics here.
wefox was founded in 2015 by Julian Teicke, Fabian Wesemann and Dario Fazlic. wefox is a full-stack insurtech with indirect distribution driven by a single purpose: keeping people safe by making insurance 10x better through technology. wefox is the parent company of wefox Insurance, which is the in-house regulated insurance carrier.
Surveys were fielded online to 12,859 respondents in the UK, US, Poland, Italy, Switzerland and Germany between March 16 and March 22, 2022.