Unbelievable green initiatives permeate various spheres.
In a recent study conducted by analysts from Sirius Campus in Cologne and Aeiforia in Montabaur, it has been revealed that German consumers view sustainability as an important aspect across industries, including insurance. However, their expectations from insurance companies have some unique features compared to other sectors.
The study indicates that German consumers expect insurance companies to actively use their expertise and data to promote risk reduction measures. This is particularly true in the context of climate change and natural catastrophes, where insurers play a crucial role in managing and signaling risks.
Consumers in Germany value clear communication and trustworthy certification of sustainable practices by insurers. They also expect insurance companies to integrate sustainability more deeply into their business culture, operations, and strategic priorities. This reflects broader trends in corporate sustainability aligned with UN SDGs.
Specifically, German consumers expect insurance companies to offer advisory, underwriting, and product solutions linked to sustainability. They seek transparency and trustworthy sustainability claims, similar to clearer certification marks preferred in consumer goods.
The study results indicate that the idea of sustainability alone is not enough to influence behavior, and tangible benefits are needed. Measures that lack credibility include supporting social and ecological projects, planting trees after contract signing, or investing in controversial industries.
Interestingly, the study found that only 13% of respondents are willing to pay higher contributions for sustainable insurance offerings, while 16% would be willing to pay more for suppliers and business partners committed to sustainable practices. This suggests that while sustainability is important, consumers may not be willing to pay a premium for it in the insurance sector.
However, more than half of respondents find internal sustainability activities by insurers credible and effective. Measures such as fair treatment of employees, environmentally conscious work, and a supplier code of conduct are well-received.
The study also reveals that sustainability is considered to be of fundamental importance in the lives of 48 percent of respondents, while 51 percent consider it to be of only moderate or little importance.
The findings come from the 90-page "focus report 'Sustainability'" from the 2021 Customer Monitor Insurance. The report highlights the need for insurance companies to demonstrate the benefit of sustainable products and to embed sustainability more deeply into their business strategies.
In conclusion, while the insurance industry lags behind other sectors in terms of valuing sustainability, German consumers hold high sustainability expectations across industries. They emphasize climate risk management, proactive impact underwriting, transparency, and strategic sustainability embedding more than direct product features or packaging as seen in retail or manufacturing. Insurance companies that align with these consumer expectations are likely to gain a competitive advantage in the market.
- Insurance companies in Germany are expected to actively use their expertise and data to promote risk reduction measures, particularly in the context of climate change and natural catastrophes.
- Consumers in Germany value clear communication and trustworthy certification of sustainable practices by insurance companies, and expect insurers to integrate sustainability more deeply into their business culture, operations, and strategic priorities.
- The study results indicate that consumers may not be willing to pay a premium for sustainable insurance offerings, but more than half find internal sustainability activities by insurers credible and effective.
- Sustainable living is considered to be of fundamental importance in the lives of 48 percent of German consumers, while 51 percent consider it to be of only moderate or little importance.
- The report highlights the need for insurance companies to demonstrate the benefit of sustainable products, embed sustainability more deeply into their business strategies, and offer advisory, underwriting, and product solutions linked to sustainability.
