About half of Americans aren’t comfortable with the level of insurance they own.
Citing negative experiences with the industry and lack of concern over the role of insurance in their financial situation, 50% of survey respondents told PolicyGenius they don’t think they have the right level of insurance coverage. Another 7% said they had “no idea” if they did.
Jennifer Fitzgerald, co-founder and CEO of PolicyGenius, posited that most Americans aren’t as concerned with insurance as they are with other financial obligations. For them, “insurance is largely out of sight and out of mind.”
“For most respondents, insurance was the lowest-ranked financial priority,” Fitzgerald said, “behind saving for retirement, paying down debt and sticking to a budget.”
Perhaps more concerning for the insurance industry is the finding that under-insurance is strongly associated with a “recent negative insurance experience.” Of the 50% who agreed that “I probably have less insurance than I need,” 48% reported their last insurance experience was negative.
For insurance producers, that statistic is a mixed bag. On one hand, 59% of survey respondents said they take a DIY, online approach to insurance research, suggesting negative experiences are mostly connected with online insurance shopping.
However, only 27% reported turning to an insurance producer in the first place, suggesting a serious lack of market penetration that could be filled by more adept online solutions—something that may edge producers out of the equation.
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