Research into insurance saving products reveals that the three most desired product features are smoothed returns, guarantees and the potential for long-term growth. If insurers take stock and reflect on how their current offerings match consumer demand, they will more easily spot the existing opportunities to innovate.
The report also sheds light on the motivations for choosing a with-profits product. It showed that selecting a with-profits product was an active choice for a majority of consumers who responded to the research. A third (33%) said that it was the best option available, just over a quarter (27%) were advised by a professional advisor and nearly the same amount (24%) said the product met personal investment objectives. When it comes to appetite for new insurance or long-term savings products the report shows that with-profits variants were the top choice of respondents to the research, with greater popularity than unit-linked and non-profit products.
Commenting on the importance of product design that meets the desires of policyholders and insurers’ opportunities for innovation, Rebecca Macdonald, Head of Products, Insurance & Financial Services, Hymans Robertson says: “Through our research we ensured that we were speaking to a mix of customers who already held with-profits products and those with non-profit and unit-linked variations of products. We also provided clear, simple explanations for each product variation. These clear explanations seem to be one reason why with-profits were so popular with the respondents to our research and something for insures to note – if the benefits of with-profits are properly articulated this could drive demand.
“There is so much potential for insurers to develop modern products that align with the features customers value. These features are closely aligned with with-profits business, and in the current higher yield environment there is a real opportunity to reincorporate simple guarantees at relatively attractive prices, on both with-profit and unit-linked products variants.”
Hymans Robertson report With-profits market developments – a consumer perspective
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