NEW YORK-The emerging "green" insurance market may offer some revenue opportunity for CUSOs and other credit union related entities, according to a new poll from Simon-Kucher & Partners.
The study, which polled 1,500 U.S. insurance executives, showed more than two-thirds of all executives believe green insurance, which insures commercial and residential green buildings as well as other products related to climate change, to be a "durable, considerable, and profitable market segment."
Though they have a higher willingness-to-pay, green customers also tend to be more knowledgeable and demanding about their providers, the executives believe, meaning that firms must "prove their credibility in order to capture this segment."
With the economy in its current shape, insurance companies must take action to capture this segment, the study maintains.
Simon-Kucher & Partners suggests focusing on "developing market excellence and strategic advantages" in the business by providing highly customized benefit-based products. Environmental certification must be a part of every marketing campaign, the study notes, as green customers have a strong "desire for credibility."
"In the past, it has been observed that investing in brand and product differentiation contribute to a distinct and positive image for a company," the consulting firm said in a statement regarding the results of the study. "Innovative products such as green insurance policies that reflect customers' needs should do just this and will counteract stagnant sales and help firms through difficult times."
