2014年-FCA英国金融行为监管局_gi_add_ons_qualitative_consumer_research_report_92页_1mb

Consumer Research Report Summary: General Insurance Add-Ons

Core Content

This report is a qualitative analysis of the sales and consumer experiences of general insurance add-ons commissioned by the Financial Conduct Authority (FCA). The research was conducted by The Development Team Limited (TDT) and aims to identify common features in add-on markets that may affect competition and consumer outcomes. The study compares the experiences of consumers who purchased general insurance products as add-ons versus standalone, focusing on factors such as purchase channels, product understanding, and post-purchase appraisal.

Main Viewpoints

Definitions and Comparisons

• Add-on refers to general insurance products sold alongside a primary product or service. It is further divided into:

  • Immediate Add-on: Purchased at the same time or shortly after the primary product.
  • Deferred Add-on: Purchased later, with a time lag, and not directly influenced by the primary product purchase.

• Standalone refers to insurance products bought independently of a primary product, not influenced by the supplier of the primary product.

• Primary Product: The main product or service that influences the purchase of the general insurance product.

Key Differences

• Immediate Add-on Purchasers:

  • Less informed about their insurance coverage.
  • More likely to be influenced by sales techniques and pressure selling.
  • Less likely to compare prices or shop around.
  • May be unaware of alternatives or have limited awareness of the product.

• Standalone Purchasers:

  • More likely to be well-informed and to shop around.
  • More proactive in assessing the suitability of the product.
  • More likely to be aware of alternatives and have a clearer understanding of their coverage.

Key Similarities

• Consumers are heavily influenced by trust in brands, products, and salespeople.
• Consumers seek peace of mind and coverage for calamities or inconveniences.
• Many consumers are disinclined to read the small print and may be lazily or ignorantly inclined.
• Consumers often frame costs based on monthly payments rather than annual costs.
• Post-purchase appraisal can lead to a reassessment of value, especially when discrepancies between expectations and reality emerge.

Key Influencing Factors

1. Purchase Channels

• Internet/Web: Used for sourcing and comparative information, perceived as a cheaper option.
• Telephone: Often used for add-on purchases, where salespeople can influence decisions.
• Face-to-Face: More likely to result in add-on purchases due to personal interaction.
• Print: Less commonly used, but still a channel for some consumers.

2. Product Understanding

• Understanding of coverage varies from high to low.
• Consumers with higher understanding tend to be standalone purchasers.
• General understanding is common among add-on and standalone purchasers.
• Low to non-existent understanding is more prevalent among add-on purchasers, especially those who made incidental or last-minute decisions.

3. Consumers' Journeys

• Pre-Purchase Shopping:

  • Consumers are more likely to shop around for travel insurance (price-led) and less for GAP and gadget.
  • Add-on purchasers are less likely to shop around, often due to convenience or lack of awareness.

• Point of Sale (POP) Experience:

  • Sales techniques can be constructive or pressurising.
  • GAP insurance is reported as the most pressurising, with some consumers perceiving it as a condition of sale.
  • Consumers often accept insurance company justifications for claim denials, despite being dissatisfied.

• Post-Purchase Appraisal:

  • Satisfaction with the product is linked to the ease of the process.
  • Some consumers change their views after reviewing policy details.
  • Claims processes are often seen as protracted or obstructive.
  • Consumers may be reluctant to claim again due to past negative experiences, even if they believe they have a valid claim.

Consumer Needs and Recommendations

Consumers expressed a desire for improvements in the supply side of the insurance market, including:

• Simplicity and Accessibility:

  • Clear, concise, and user-friendly policy formats.
  • Everyday language that is straightforward and unambiguous.
  • Summary of key factors and coverage details to support informed decision-making.
  • Greater awareness of alternative suppliers and competitive options at the point of purchase.

• Safety and Security:

  • Confidence in suppliers and products.
  • Balanced presentation of what is and is not covered.
  • Avoidance of unfair 'get outs' in policy terms.
  • Fair and efficient claims processes.

• Consistency Across Products:

  • Accessible and consistent information across different insurance products.
  • Some consumers requested equal pricing for the same product from different suppliers.

Conclusion

The report highlights the differences and similarities between add-on and standalone insurance purchasing, with add-on purchasers often being less informed, less likely to shop around, and more influenced by sales techniques. There are concerns about quality of coverage, price transparency, and claims processes. While consumers generally express satisfaction with their insurance products, especially if the process is hassle-free, many feel vulnerable when it comes to making claims. The FCA and industry stakeholders are advised to consider supply-side improvements to enhance consumer understanding, trust, and outcomes.