Article

"Wealth" ecosystem – The insurer as the customer's "financial home"

The area of finance and pension provision is an interesting growth market. This stems not only from the current turbulence on the financial markets, but also from easier access to financial products and increased awareness among the younger generation. It is worthwhile to rethink the traditional banking cooperation – in doing so, the focus must be on the customers' demands.

Customers' experiences with financial products have given rise to a wide range of expectations and wishes. Negative experiences in this area include hidden costs or inadequate product management, media disruptions when researching and purchasing products, complicated purchasing processes, and a lack of flexibility. In this context, the positive experiences of the past have long been regarded as minimum requirements for the future. This encompasses, for example, the demand for personalized advice that is uncomplicated and flexible, transparency through comparability, and permanent availability. We have noted that consumers now want lean and compact solutions (keyword: "convenience") that nevertheless meet their specific needs. According to the Customer Experience Study 2021 by Horváth and Forsa, customers also expect insurance companies to offer ESG-compliant processes and products, and to represent an honest and value-based vision. 

At the same time, it is becoming increasingly difficult for insurers to retain customers. With new market entrants putting additional pressure on costs and margins, the insurance business has become extremely competitive. However, one trend is playing into the "Wealth" ecosystem's hands right now – the "youth boom" on the stock market. From 2019 to 2020, Deutsches Aktieninstitut reported an additional 2.2 million investors in funds and ETFs – an increase of 30%. Among the under-30s, this increase was as much as 67%. Finance is a hot topic right now, and with the right partners, insurers can position their value-added services accordingly. 

"Financial Home" – Example features

The "Financial Home" concept offers real added value for the customer through easy access and the "one-stop shop" concept. There is also enormous revenue potential in transaction-based triggering. For example, if a customer purchases a new car, the corresponding transaction data could automatically trigger personalized advertising or an opportunity for dialog. The Wealth segment can be thought of in even broader terms: Life-changing events such as moving home, buying a house, buying/leasing a car or starting a family can be identified on the basis of account movements, thus revealing potential for improvement and creating additional sales opportunities with links to other ecosystems. 

We would be delighted to discuss the scope for further development of the "Financial Home" with you, including our own ideas for market impulses. 

Hesky, M. / Schröder, I.