Communication as a Tool to Build Trust: An Explorative Research on the Danish Insurance Industry

Rasmus Vest Nielsen & Rasmus Jul Nielsen

Student thesis: Master thesis

Abstract

Insurance companies in Denmark are experiencing challenges in retaining customers. This proves to be problematic, as it is costly to acquire new customers and since customers only begins to contribute to bottom line performance after four years. Based on this identified problem, this master’s thesis will investigate how insurance companies can strengthen their relationship with the young, private insurance customers, in the age of 18-29. In order to investigate the identified problem, a survey questionnaire and four different interviews has been conducted. Three of those interviews were conducted with external experts, whom contributed with their knowledge and perception of young customers relation to insurance. Furthermore, a focus group interview and survey questionnaire, on young customers, was conducted to generate knowledge to understand how to build trust with them. The perception of young customers relation to insurances showed that they have a general low understanding of how insurances function and their importance hereof. Their lack of understanding is seen as a consequence of the difficult language used in the insurance industry in general. Moreover, the lack of a common language proves difficult to communicate with the customers as a result. An analysis of the young customers attitudes and needs towards insurances showed that three main trust drivers were apparent, which could be achieved through the communication; transparency, intentions and authenticity. These three trust drivers collectively can be used in the communication to improve trust with the young customers. Additionally, a segmentation was developed to provide actionable measures towards customers of different communication preferences and how to communicate with them in particular. Finally, it is concluded that insurance companies can strengthen their relations and improve loyalty with the young customers, through the means of segmenting the customers based on their behaviour and hereby provide them with communication based on their needs.

EducationsMSc in International Marketing and Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2019
Number of pages160
SupervisorsKarin Tollin