AMR Future Brief| Exploring Consumer Preferences in On-Demand Insurance: Analyzing Poll Insights

On-demand insurance has revolutionized the insurance industry by offering dynamic, user-centric solutions. With the ability to adapt to individual needs and preferences, it is reshaping how consumers perceive and interact with insurance services. Thus, on-demand insurance has emerged as a disruptive force in the insurance sector, offering customers tailored solutions in real time. 

A recent poll conducted by Allied Market Research asked 300 participants, “What do you find most appealing about on-demand insurance?” The responses highlighted four key drivers, including flexibility in coverage, personalized options, digital convenience, and affordability. 

Personalized Options: The Leading Factor 

Dominating the poll with 67% of the votes, personalized options emerged as the most attractive feature. Consumers value tailored insurance policies that align with their unique circumstances and needs. For instance, on-demand platforms allow users to customize coverage for specific durations, such as travel insurance for a single trip or short-term property coverage for a vacation rental. A recent study by McKinsey revealed that personalized insurance plans improve customer satisfaction by 33%. For instance, Liberty Mutual—one of the largest global property and casualty insurers—introduced an AI-powered communication system that significantly improved service efficiency and customer engagement. Response times were reduced by 74%, customer satisfaction scores rose by 25%, and policy renewal rates increased by 18%. Moreover, dynamic customization ensures better risk assessment, leading to more accurate premium calculations. This approach not only benefits the customer but also enhances profitability for insurers by minimizing claims unpredictability. 

Digital Convenience: A Rising Trend 

Securing 33% of the votes, digital convenience highlights the appeal of technology-driven insurance solutions. On-demand insurance platforms provide seamless access via mobile apps and websites, enabling policy activation or cancellation with just a few clicks. A recent study revealed that to provide exceptional customer experience, the adoption of digital tools is necessary. Digital transformation is a primary focus for 35% of organizations aiming to improve customer experience. The research further indicates that increasing customer retention by just 5% can boost profits by 25–95%, highlighting the critical role of digital transformation in driving customer satisfaction and long-term business success. For example, AI-powered systems now process claims within hours rather than days, significantly improving the customer experience. In addition, chatbots and virtual assistants have enhanced 24/7 support capabilities, further increasing the appeal of digital convenience. 

Flexibility in Coverage and Affordability: A Practical Duo 

While neither flexibility in coverage nor affordability individually received votes, they still play a critical role in the appeal of on-demand insurance. On-demand insurance enables users to pay only for what they need, avoiding rigid, long-term contracts. A study showed companies offering low-cost, flexible health benefits gain a significant advantage in talent retention. Flexibility in coverage and affordability are key, as 56% of American adults with employer-sponsored health benefits stated that satisfaction with their health plan was a critical factor in deciding whether to stay at their job. This underscores how tailored, budget-friendly benefits directly impact employee loyalty.  

Future of On-demand Insurance 

The poll results underscore the importance of personalization and digital convenience, with flexibility and affordability providing crucial support. As technology advances, on-demand insurance will likely continue to innovate, offering even more seamless and adaptive solutions. This evolution aligns with the broader industry goals of accessibility, efficiency, and customer empowerment. 

For further discussions on the transformative potential of on-demand insurance, connect with our team of experts.