A new study from Zelros finds that 70% of people are willing to pay more for ethical insurance companies.
The Rise of the Ethical Shopper
With increasingly more market options available, across industries, consumers are in a position to demand more. One trend that seems to be cropping up more and more is the demand for company accountability. Companies are having to invest more time and money into their corporate social responsibility in order to stay competitive.
70% More Willing To Pay For Ethical Insurance
70% of people are willing to pay more for their insurance policies if their insurance company was committed to responsible technology, sustainability and diversity, according to a study conducted by Zelros involving over 1,000 people from the US, Canada, the UK and parts of Europe. “Consumers are paying closer attention to sustainability and responsible use of data and AI, what they are finding is a lack of transparency into official governance programs.” explains Linh C. Ho, Chief Marketing Officer at Zelros. “InsurTech vendors such as Zelros helps insurance companies leverage AI responsibly for example by detecting and maintaining bias-free algorithms, and tracking and reporting for a greener planet–while providing the explainability and transparency of Responsible AI.” While 70% are willing to pay more overall, the amount they were willing to pay differed greatly.
Men were more willing to pay anywhere from $21-$50+ additional a month, while women were more willing to pay less than $10-$20 additional a month. More women surveyed said that they would not pay anything additional than men. 30.3% of women reported that they were not willing to pay more, versus 26.3% of men.
Differences in Age Demographics
Younger people were more likely to be willing to pay more for ethical technology use. 45.5% of people ages 54 and older were not willing to pay more for ethical technology use, the highest percentage out of all age groups studied. 18-24 year-olds and 25-34 year-olds were more inclined to pay more for ethical technology use.
Demand For Greater Ethics in Insurance
This Zelros study shows that there is a substantial consumer demand for ethical companies. People are willing to pay more for ethical companies that maintain values of responsible technology, sustainability and diversity. Founded in 2016 by Christophe Bourguignat, Fabien Vauchelles and Damien Philippon, Zelros is using artificial Intelligence and Machine Learning technology to help make sure more people are covered, are aware of their insurance policy needs and are given highly personalized recommendations when they need it. Zelros’ data allows them to help insurers provide policyholders with the right coverage for their needs as they occur in real-time.