Do Americans think they have the right insurance?

1,000 person poll:

insurance attitudes

and experiences

July 2014

1

Executive summary

PolicyGenius and OnePoll polled 1,000 adults, who in the past year have made an insurance-related decision, to

understand perceptions and attitudes about insurance coverage in the US. We found:

The majority of respondents either don’t think they have the right level of insurance coverage (50%) or have no idea if

they do (7%)

One possible reason for this is that insurance is largely out of sight and out of mind. For most respondents, insurance

was the lowest-ranked financial priority – behind saving for retirement, paying down debt and sticking to a budget

We also found that a recent negative insurance experience is strongly associated with perceived under-insurance. Of

respondents who reported “I probably have less insurance than I need,” 48% reported that their last insurance

experience was negative vs. 21% reported that their last insurance experience was positive.

There is also an opportunity to improve the experience, and increase conversion, among insurance shoppers who end

up not buying coverage. Among respondents who have shopped for long-term disability insurance or life insurance,

and did not buy, the majority had negative feelings about their shopping experience.

Most respondents take an online, DIY approach to getting their insurance questions answered. When asked where’s

the first place they go with an insurance question, 59% said, “I research it myself online.” Only 27% turn to an

insurance agent or financial advisor and 10% ask a trusted friend or family member.

The DIYers are more confident in their financial risk protection than respondents who rely on others for advice: 60% of

DIYers are “pretty confident” in their protection against financial risks vs. 56% of respondents who rely on an

agent/advisor and 31% of respondents who rely on friends or family. Interestingly, respondents who turn first to friends

or family for insurance questions are most in the dark about their protection: 17% said “I have no idea” when asked

about their protection against financial risks, versus 5% of DIYers and 8% of agent/advisor advice seekers.

2

The majority of respondents are not

confident about their insurance portfolio

Q. Consider the types and amount of insurance you have. How would you describe your overall level of insurance?

Percent of respondents

50% reported a sub-optimal mix (either too much or

not enough insurance) and 7% had no idea

I have no idea whether I have the right types and amount of

insurance7%

I probably have less insurance

than I need28%

I probably have more insurance than I need22%

I probably have the right types and

amount of insurance43%

I have no idea whether I have the right types & amount of

insurance

I probably have less insurance than I need

I probably have more insurance than I need

I probably have the right types and amount of insurance

25 – 34 year olds in particular reported sub-optimal

insurance: 54% reported either too much or not enough

6

27

27

4025 – 34

9

27

20

4435 – 44

7

34

12

47 45 – 54

Source: Survey conducted by OnePoll, June 2014; 1000 Americans between the ages of 18 and 54 who have either looked into buying new insurance or

changing insurance within the past year.

3

Women are less confident about their protection

against financial risksQ. How confident are you that you’re protected against major financial risks?


4.9

33.7

61.4

8.8

40.6

50.6

0 10 20 30 40 50 60 70

I have no idea

Not too confident

Pretty confident

Women

Men



4

DIYers are more confident in their financial risk

protection than respondents who rely on others

for advice

17.4

52.0

30.6

7.8

36.1

56.1

2.2

43.2

54.6

5.1

34.8

60.1

0 10 20 30 40 50 60 70

I have no idea

Not too confident

Pretty confident

Read insurance company information

Ask my agent or advisor

Ask trusted friend or family Q. How confident are you that you’re protected against major financial risks?Percent of respondents

Self-research online

Respondents whose

first port of call for

insurance advice is

friends or family are

least confident and

most in the dark

Q. If you have a question about insurance,

where is the first place you go?



5

For most respondents, insurance was the lowest ranked

financial priority – behind saving for retirement, paying

down debt and sticking to a budget

Q. Please rank the financial priorities in order of preference, where 1 is most important and 4 is least important

Percent of respondents who ranked the priority #1 (most important)

Budget

Debt

Retirement

Insurance

17

23

14

9

20

15

21 21 22

16 16

25

29

26

29

35

26

3233

29

35

3938

27

0

5

10

15

20

25

30

35

40

45

Overall 25 - 34 35 - 44 45 - 54 Men Women

Insurance ranked higher for 25-34 year-olds and men



6

Respondents whose last insurance experience

was negative were more likely to report having

less insurance than they need

Q. Consider the types and amount of insurance you have. How would you describe your overall level of insurance?


More negative than positive

More positive than negative

4.6

21.0

30.3

44.1

5.6

47.5

14.4

32.5

0 5 10 15 20 25 30 35 40 45 50

No idea whether I have the right types and amount ofinsurance

I probably have less insurance than I need

I probably have more insurance than I need

I probably have the right types and amount of insurance

Q. Think about the last experience you had

dealing with insurance, other than health

insurance. How would you describe that

experience?


changing insurance within the past year

7

Most respondents take an online, DIY approach to getting their

insurance answered Q. If you have a question about insurance, where is the first place you go?


4.3

8.2

24.7

62.9

4.5

11.4

29.0

55.1

0 20 40 60 80

I read information providedby insurance companies

I ask a trusted friend orfamily

I ask my insurance agent orfinancial advisor

I research it myself online



Overall strong preference online DIY research

While still mostly online DIYers, women more likely than

men to seek advice elsewhere

4.4

9.8

26.9

58.9

0 20 40 60 80

I read information providedby insurance companies

I ask a trusted friend orfamily

I ask my insurance agent orfinancial advisor


Women

Men

8

Online DIY approach is most popular across all age

groups

Q. If you have a question about insurance, where is the first place you go?


4.3

10.7

22.3

62.7

5.3

8.7

28.4

57.6

2.7

8.7

35.9

52.7

0 20 40 60 80

I read information provided by insurancecompanies

I ask a trusted friend or family

I ask my insurance agent or financial advisor


45 – 54 year olds

35 – 44 year olds

25 – 34 year olds



9

Majority of non-buyers of long-term disability insurance

reported negative feelings after their shopping experience

Q. Have you ever shopped for long-term disability

insurance on your own (not through an employer)?

Percent of respondents employed full-time

Yes, and I bought it31%

Yes, but I didn't buy it16%

No, but I'm familiar with what it is42%

No, and I'm not familiar with what it

is11%

Q. Which of the following best describes how you felt

after your long-term disability shopping experience?


29.8

21.6

35.1

13.5

0

5

10

15

20

25

30

35

40

I'm not sure Imade the right

decision

It felt toocomplicated

It gave mepeace of mind

It was prettystraightforward

Negative experience

Positive experience

Source: Survey conducted by OnePoll, June 2014; 695 Americans between the ages of 18 and 54 who have looked into buying new insurance or changing

insurance within the past year and are employed full-time

10

Similarly, most parents who shopped for and didn’t buy life

insurance reported negative feelings after their shopping

experience Q. Have you ever shopped life insurance on your own

(not through an employer)?

Percent of respondents with children

Yes, and I bought it54%

Yes, but I didn't buy it22%

No, but I'm familiar with what it is

21%No, and I'm not familiar with

what it is3%

Q. Which of the following best describes how you felt

after your life insurance shopping experience?

Percent of respondents with children

33.6

30.0

21.7

14.7

0

5

10

15

20

25

30

35

40

I'm not sure Imade the right

decision

It felt toocomplicated

It gave mepeace of mind

It was prettystraightforward

Negative experience

Positive experience


insurance within the past year and have children

11

US at a glance: the Midwest is most in the dark when it comes to

their protection against financial risks

Q. How confident are you that you’re protected against major financial risks?

Percent of respondents who said “I have no idea”

7.2%10.8%

5.7%

5.3%

4.7%

5.3%

East Coast

South

South West

West Coast

Mid-westWest

6.8%

USA



12

US at a glance: the Midwest is more likely to seek insurance

advice from others Q. If you have a question about insurance, where is the first place you go?

Percent of respondents that would ask their “Insurance agent/financial advisor” or “Trusted friend/family member”

34%45%

34%

36%

32%

35%

East Coast

South

South West

West Coast

Mid-westWest

37%

USA



13

US at a glance: West Coast respondents report lowest level of

long-term disability protectionQ. Do you have long-term disability insurance?


32%41%

27%

38%

31%

33%

East Coast

South

South West

West Coast

Mid-westWest

34%

USA


insurance within the past year and are employed full-time

Economy & Finance

Do Americans think they have the right insurance?