Now comes August 2, and with it the legal obligation to consult sustainability preferences in insurance intermediation. While there is still some confusion in the industry about who exactly has to do what, the General Association of the German Insurance Industry has already found out how the sustainable attitude of consumers can best be translated into contracts.
Potential clients are more likely to opt for a sustainable insurance product if premiums are invested in “green” companies rather than “ESG compliant” companies. This was the conclusion of a study by the Technical University of Munich (TUM) commissioned by the GDV. For this, 705 people were surveyed and these results were confirmed by interviews and customer surveys at Versicherungskammer Bayern and R+V.
“Green” instead of “ESG Compliant”
Specifically, almost 40 percent of those surveyed were willing to take out the sustainable insurance product, even if it was 20 percent more expensive than a classic rate. They were advised of an “ESG-compliant” investment. If, on the other hand, the term “green” investment was used, the proportion of those willing to enter into the contract was almost 50 percent. Women were clearly more receptive to sustainable investments.
In general, TUM and GDV conclude that the visible behavior of insurers and intermediaries contributes more to triggering sustainable purchase decisions than, for example, informative texts. “If it becomes clear during consultation that insurers have a genuine self-interest in transformation (editor’s note: to prevent damage from natural disasters, for example) and can develop a large leverage effect, the idea of sustainability quickly jumps to the fore.” light”. clients and customers”, says Gunther Friedl, President of Controlling at TUM.
Regular preference check
At the same time, it points out that sustainability preferences can change because they can only be subject to short-term trends caused by current events. The study authors emphasize that these do not always reflect long-term beliefs. This aspect should be taken into account in the consultation and checked at certain intervals.
The group of pupils, students and apprentices showed the most sustainable attitude. Despite their relatively low income, 72 percent of respondents are willing to pay five percent more for long-term personal liability insurance. Lagging behind are employed (60.4 percent) and pensioners (55.3 percent). Even with a 20 percent surcharge for the PHV, young people are in the lead (55.9 percent). 43.4 percent of the employed were willing to do so, while 53.2 percent of pensioners were.