Australians ‘still catching up’ on alternative sales channels
Consumers in Australia are resistant to buying insurance via non-traditional channels, with just 8% using third-party marketplace apps, research by Cover Genius has found.
The figure compares with uptake of 21% in the US and 12% in the UK, according to the Embedded Protection Consumer Survey.
“Australian consumers are highly risk-conscious, but their buying habits are still catching up to modern channels,” Cover Genius CEO Angus McDonald said.
“Uptake in marketplace apps and AI tools is still in its early stages in Australia compared to markets like the US.”
Embedded insurance group Cover Genius says trust in established providers remains an influence here, with 41% of Australians choosing to buy cover through a standalone insurer. Only 4% here trust AI to handle protection decisions, according to the survey of 1392 consumers in seven countries, including 225 participants in Australia.
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Australians place their trust in established entities to provide coverage, led by banks or credit card providers, platforms they book through and dedicated insurers, Cover Genius says.
They are hesitant to buy protection from modern platforms, although “appetite for protection offered at checkout is high”, with 75% of Australians polled saying they would be more likely to book through an online travel platform that automatically included protection at point of purchase.
This signals “significant opportunity for platforms to gain market share” and reflects that in Australia “the appetite for embedded coverage is undeniable” in trusted platforms, Cover Genius says.
Emergency medical cover while travelling is the best-rated protection product in Australia, with 80% marking it high, against 66% in the US. Cyber identity theft protection (72%) and trip cancellation/interruption (70%) follow closely behind among Australians.
Despite trust in banks to provide policies, only 30% of Australians successfully use a credit card insurance feature, and 27% don’t know what their primary card covers.
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