Building Consumer Trust in the Digitalizing Insurance Sector

Abstract

Deciding if an online entity is trustworthy can be challenging. How do you decide if you can go into business with an unknown company, offering an enticing product?

This thesis project aimed to enhance consumer trust in Insify, a starting business insurance company operating in a competitive market. The objective was to identify trust indicators and evaluate their impact on conversion rates, ultimately seeking ways to improve consumer trust.

Insify is an InsurTech company aiming to simplify and digitize insurance processes. They offer disability, property & casualty, and health insurance directly to customers, targeting self-employed entrepreneurs and small to medium-sized enterprises. However, they face competition from established insurers and challenges associated with digitalization in a crowded market.

In the e-commerce realm, building consumer trust is challenging but crucial. Early UX designers incorporated trust-building elements into online spaces. However, during the past decade, deceptive design practices emerged, complicating the trust-building process and increasing consumer skepticism towards the online provision of personal information.

The project follows the Double Diamond design method, involving literature research, expert interviews, customer surveys, and A/B testing to redefine trust indicators and enhance the customer journey. In the final section of the design phase a strategic roadmap is presented, highlighting future opportunities for Insify.

The research findings revealed that customers value personal contact and support. The customer survey indicated the significance of insurance premiums and coverage for business insurance customers. Trust-building was identified as a multifaceted process that extends beyond competence, integrity, and benevolence, indicating a need for a connected set of trust indicators throughout the customer journey. However, the research project faced limitations, such as difficulties in translating trust indicators into design components and defining precise methods to measure consumer trust.

Based on the findings, recommendations were made for Insify to showcase customer testimonials and use cases to demonstrate positive experiences, conduct A/B tests with more significant variations, and focus on addressing the desire for personal contact among customers. In a broader sense, the financial industry should recognize the impact of information asymmetry and prioritize conversations over fully automated application processes and questionnaires. Furthermore, the industry should prepare for disruptive transitions, such as the integration of AI.

While the specific design components tested did not significantly impact conversion rates, the research process contributed to a deeper understanding of trust indicators and their role in consumer trust. The recommendations provided can guide Insify and the financial industry in enhancing consumer trust and improving the customer journey. Further research is encouraged to address the identified limitations and explore trust-building topics in more depth. Building trusting relationships with consumers should remain a primary goal, emphasizing the trust-building potential of each touchpoint in the customer journey.