Consumers are craving simple products in the wake of the Covid-19 pandemic, but at the same time they want products that are adjustable and tailored to their needs. This means insurers need to find the right balance when designing their products, but that is easier said than done

By insight editor Matt Scott

The Covid-19 pandemic, and particularly the business interruption scandal, has exposed the complex nature of insurance.

As such, consumers are demanding simpler products that are easy to understand, quick to purchase, and protect their privacy without being intrusive.

New research from Deloitte has found that some 29% of consumers would pick basic coverage as their preferred product of choice, citing ease of comparability, a lack of intrusion and familiarity as reasons behind their choices.

This puts basic coverage at the top of the pile, some way ahead of self-controlled and adjustable policies (19%) in second place.

At the other end of the scale, connected and cost-focused home policies and connected and broad service motor policies (both 11%) make for the least in demand products.

But at the same time, consumers are also saying that they want flexible solutions that are tailored to their specific needs.

Lockdown has shown that things can change at short notice, and consumers now want the ability to be able to turn down the level of cover they are purchasing if they are driving less or working from home because of restrictions laid down to prevent the spread of coronavirus.

For some, connected products such as telematics in the motor market or smart home devices for contents and building insurance will allow them to tailor their products to the new way of life post-lockdown.

For others, who believe data sharing to be too intrusive (49% of UK consumers according to Deloitte), insurers will need to come up with new products to meet their needs.

Whether that be short-term products or subscription-based cover, insurers will need to come up with new business models and new ways of engaging with their customers.

This will be even more important given the FCA’s regulatory changes that have already removed dual-pricing and price walking.