New Report: Younger Consumers Could Make Buying Insurance From a Financial Institution Cool

Most consumers get their insurance from various providers, but data shows that consumers want to simplify the process. PYMNTS Intelligence finds that 44% of all consumers would turn to their financial institutions (FIs) for these needs.

Younger consumers are particularly keen on shopping for these services from a FI. For example, Generation Z consumers are 43% more likely than average to consider getting their insurance from an FI. Their interest could be enough to shake up the status quo.

These are just some of the findings detailed in “Why Consumers Are Looking to Financial Institutions for Insurance,” a PYMNTS Intelligence and Franklin Madison collaboration. This report examines consumer perceptions of FIs as insurance providers. It draws on insights from a survey of 2,195 U.S. consumers conducted from March 22 to March 28.

Other key findings in the report include:

Consumers need insurance and prefer to get it from convenient sources.

Our data shows that the average consumer has 3.7 different insurance types. Wealthier consumers carry a bit more, averaging 4.4 different types. Most consumers have health (78%) and auto coverage (75%). Beyond the must-haves, consumers’ need for specific types of insurance — such as life, pet or travel— varies. This report details which types consumers are most interested in obtaining from their FIs.

Nearly half of consumers show interest in buying insurance from their FI. Gen Z and millennial consumers are more interested.

Forty-four percent of consumers show interest in buying insurance from their FI. The shares rise to 63% among Gen Z and 60% among millennials. Consumers who bought these services from an FI will likely become repeat customers. In fact, 76% of those who bought insurance from an FI expressed interest in buying more in the coming year.

Trust in an FI is the main reason consumers look at purchasing from an FI.

Trust is the key factor driving consumer interest in purchasing these services from an FI. In fact, consumers are more than twice as likely to name trust, at 39%, than cost, at 19%. The report also includes insights into reasons consumers are uninterested in turning to their FI for insurance.

FIs have the opportunity to become a one-stop shop addressing all aspects of consumers’ financial and insurance needs. And consumers are warming to the idea. Download the report to learn about consumers’ interest in FIs as insurance providers.