Global turmoil is having a huge impact on your customers. Here's how you can help them.
Climate change, energy crisis, the economic aftermath of the pandemic, cybercrime, the war with Russia… Worldwide, we are seeing upheaval on several fronts. It has an impact on how your customers consume. Find out what they expect from you and how you can tailor your offer accordingly.
Global risks are a source of worry for your customers
Every year, AXA Group uses its emerging risks survey to assess the global risks that have a severe and long-term negative impact on multiple countries and/or industries. These risks also have an impact on your customers at home. They influence how they think and consume. But above all: which brands or companies they trust.
Consumers worldwide have less and less faith that governments will provide sustainable solutions. Instead, they are looking to companies to meet the global challenges. Companies are able to take more decisive action and have the people and resources to deliver a real solution. The Future Risk Report 2022 shows that nearly 70% of the general public believe that insurers will play an important role in mitigating future risks.
In this article, we will focus on the 3 risks that are the most worrying, worldwide: climate change, the economic crisis and the energy crisis. You will read how you can support your customers in the face of these challenges and which solutions AXA Partners offers that are relevant to your customers.
Risk 1: Climate change
Make sustainable choices easy.
Floods, heat waves, forest fires… In recent years we have experienced the devastating effects of climate change. How much suffering this can bring to your customers was painfully clear during the floods in the summer of 2021.
Both experts (86%) and the general public (80%) are deeply concerned about natural disasters.
Worldwide, experts unanimously rank climate change as number 1 in the list of risks. This is the first time we are seeing this result since AXA Group started its annual emerging risks survey nine years ago. Both experts (86%) and the general public (80%) are seriously concerned about natural disasters such as floods, heat waves, storms and the rising sea level, which have a tangible impact on their physical lives.
Young people have regarded climate change as the biggest risk for years. They want the corporate world to take responsibility for a much-needed energy transition. They therefore put pollution in third place and natural resources and biodiversity risks fifth in their top five.
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Your challenge.
Consumers are looking to you to counteract the climate crisis. They expect companies to work, produce, distribute and operate more sustainably: from reducing CO2 emissions and plastic to offering company bicycles. They want the business world to guarantee responsible consumption but also support them faster and better (financially) if they are victims of climate disasters. To achieve this, the private sector must help set the climate agenda and work together with the public on new solutions. -
Your opportunity.
Insurers and governments should jointly rethink legislation on climate disasters. In this way, they can share the risks in the event of natural disasters and ensure that consumers are not left out in the cold. And insurers can offer sustainable or socially responsible insurance and assistance, despite the many unknown variables and risks. -
Example(s).
Link benefits to products that reinforce and support the sustainable consumption behaviour of your customers. AXA Partners developed an all-in bicycle insurance with assistance for bicycles, e-bikes and pedelecs. This can be seamlessly integrated into a youth payment card or group insurance. For owners of an ecological boiler or solar panels, a maintenance service such as Heating Maintenance or a 24/7 repair service such as Emergency@Home offers total peace of mind.
Risk 2: Economic crisis
Protect the standard of living.
It should have been the year when everything got back to normal after the pandemic. Instead, 2022 became the year when war broke out in Europe, energy prices rose even further and inflation skyrocketed, further straining the resilience of an already fragile society worldwide.
In AXA's recent Future Risks Report, the experts surveyed put economic risks in their top ten for the first time. Social tensions are also suddenly ranked in sixth place. That comes as no surprise: the economic crisis is exacerbating social inequality and fuelling concerns about social tensions. The COVID19 pandemic had already seriously weakened purchasing power and widened the gap between rich and poor. The World Bank estimates that the richest 20% of the world's population had already recovered half of their losses by 2021, while the poorest 20% saw their incomes fall by 5%.
Households fear that they will no longer be able to afford essentials such as food and energy.
The World Economic Forum (WEF) lists the traumatic rise in the cost of living as one of the five post-COVID risks having the greatest impact worldwide. By 2030, 51 million more people are expected to live in extreme poverty than before the pandemic. Households fear that they will no longer be able to afford essentials such as food and energy. They are concerned about their future and are reluctant to take personal and professional risks or make large purchases. Add to that the current inflation, with consumer goods becoming more and more expensive, and the war in Ukraine, and you have the perfect recipe for a lifetime income crisis.
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Your challenge.
The increase in living and energy costs is also having a serious impact on families in Belgium. Dual earners with a decent income are finding it more difficult to pay the monthly utility bills. These turbulent times are making people long for more certainty. They expect organisations like yours to guarantee that their health and safety will not be compromised and that they will be able to maintain their old lifestyle. -
Your opportunity.
Ideally, companies should offer solutions that inherently ensure the peace of mind and purchasing power of their customers. And that guarantee them that their family budget and quality of life will not be compromised. In this way, you become the safety net that your customers need and you can secure their loyalty at the same time. -
Example(s).
AXA Partners developed Bill Protection, an insurance policy that protects your customers' lifestyles. It guarantees that you will pay certain monthly bills on behalf of your customers if they unexpectedly become ill or unemployed. You can include this insurance in your energy contract or credit card.
Risk 3: Energy crisis
Help your customers become energy independent.
Since the second half of 2021, energy prices worldwide have been on the rise – a trend that was exacerbated by the Russian invasion of Ukraine. It's no wonder that over 60% of Europeans surveyed put energy risks in third place. They are worried that prices will continue to rise and that the energy supply to the EU will be jeopardised by the war.
More than 60% of the Europeans surveyed put energy risks in third place.
More than ever, consumers are switching to green energy sources such as heat pumps and solar panels. They want an environmentally friendly and economical alternative to fossil fuels and they no longer want to be dependent on energy suppliers.
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Your challenge.
Gain insight into the concept and technology behind alternative energy sources and discover where you can add value. Because anyone who can protect their customer against excessive energy bills with good and transparent pricing has a real advantage. And if you can also offer them relevant solutions, assistance and effortless comfort, you'll be ten steps ahead of the competition. -
Your opportunity.
Protect your customers against the consequences of the energy crisis. Help them save on heating costs. Keep their (alternative) heating installation in top condition so that it works optimally and energy-efficiently for longer. Or encourage them to switch to green energy and enable them to become their own energy supplier. -
Example(s).
Guarantee, for example, that owners – even in bad weather – get the full return from their solar panels. The Solar Panel Solution insurance pays compensation to your customers every time the sun shines less than average and the panels produce less energy than normal. And this happens automatically, without any human intervention. An annual maintenance or a 24/7 repair service such as Emergency@Home, which you can include in your energy contract, credit card or outstanding balance insurance, ensures that your customers' installations work more energy-efficiently for longer.
Would you like to know more about these and other solutions? Or would you like to exchange ideas with one of our advisors about how you can help your customers to cope with global risks? Please feel free to contact us.
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