Customers want insurers to become more environmentally friendly – but they are not quite ready to fully accept refurbished parts and replacements for car parts and home furnishings, new research from financial services insight experts Consumer Intelligence shows. The study revealed overwhelming backing for insurers going green – 81% of customers say they want their insurer to be environmentally friendly with 22% even willing to pay extra for a policy that helps the planet.
Almost all (96%) of customers surveyed said they recycle waste such as paper, plastics, clothes, and cans and 72% said they would be interested in their insurer recycling parts for repairs and refurbishments particularly if they were certified and safe. Leading insurers such as Ageas already have reasonably well-established green parts programmes and plan to treble the use of green parts in car repairs by 2023 and there is support from customers for scrapyard repairs.
Around 70% say they would be happy to accept them if they came with warranties while 57% would accept them if they were quality checked by a garage.
DO YOU WANT A USED BED? NO THANKS
But home insurers face bigger challenges in persuading customers to accept recycled furniture for replacements with 61% unhappy about receiving a second-hand bed; 47% unhappy with recycled curtains or carpets and 45% opposed to second-hand sofas. Customers were more receptive to recycled tech and white goods but 37% were opposed to refurbished fridges and freezers and washer/dryers. Opposition to second-hand tables and chairs was the lowest at 27%.
The main objection from customers was hygiene – around a third (34%) said they didn’t want other people’s dirt or germs in their home. Around 69% said a warranty guarantee from insurers would make them more likely to accept refurbished replacements.
Karen Houseago, Head of Insurance, Consumer Intelligence says: “It looks very much like there’s still a gap between what consumers say they want on environmental credentials and what they’re ready to accept when it comes to the reality of receiving non-new repair parts and refurbishments.
“There’s a big difference between expecting your insurer not to be cutting down rainforests or polluting the air and actually sitting on someone’s second-hand settee. Certainly, there’s a job to be done by going green insurers to win over consumers and prove the quality and benefits of their green parts programmes.”