Eight out of ten Germans can relate to the term sustainability, but mostly associate it with ecological and climate goals. Concrete consequences are seen for the purchase of food and household appliances as well as for heating, but hardly any for investments and insurance. The insurance industry should communicate more about its contribution to sustainability, according to a recent representative survey by the Faculty of Business Studies at Dortmund University of Applied Sciences and Arts.
One aim of the study on sustainability and insurance from the customer's perspective was to investigate the knowledge and attitudes of German households towards sustainability and to find out whether they also associate this with insurance, among other things. A further aim was to determine whether the current strong devaluation of money (inflation) is displacing interest in sustainable, but in some cases also more expensive consumption in favor of inexpensive products and services. Finally, the aim was to create a sustainability typology of the population.
Sustainable is translated as ecological and climate-friendly
As many as 82% of those surveyed were generally able to relate to the term sustainability. In their own definitions, they predominantly emphasized the ecological aspect of sustainability. "The current climate debate is strongly influencing attitudes," explains Prof. Dr. Matthias Beenken, one of the authors of the study and a lecturer at the Faculty of Business Studies at Fachhochschule Dortmund, "although the term sustainability also encompasses other environmental goals as well as goals of social justice and good corporate governance."
For 70 percent, sustainability is personally important. The most frequent consequences of this are drawn for the areas of food shopping, heating and technical household appliances, but predominantly not for financial investments and insurance. When respondents are asked to choose between more expensive, but sustainable, or cheaper, non-sustainable offers, the majority of respondents only choose sustainability for food shopping, heating, technical household appliances and clothing. When it comes to mobility, restaurant visits and cosmetics, sustainability and price-oriented consumers are roughly in balance. In contrast, the price orientation dominates for vacation trips, investments and insurance.
Links between sustainability and insurance
"In the case of insurance, this may have to do with the fact that many customers are not even aware that insurance can be sustainable," says co-author Prof. Dr. Hubert Bornhorn. "For example, a private pension plan serves intergenerational equity and thus sustainability, because the financing of the standard of living in old age is not left to future taxpayers. In fact, however, there are many more references to sustainability, such as sustainable investments, sustainable insurance products, not just in life insurance, or sustainable insurance operations."
So far, only seven percent of respondents have seen advertising and six percent have seen information about the sustainability of their insurance policies. "It is important to note that the legal basis for such information on the part of the EU is still very patchy and insurers are therefore exposed to the risk of being accused of greenwashing and thus misleading statements on sustainability," explains co-author Prof. Dr. Lukas Linnenbrink. As many as 26% of participants expressed an interest in information on the sustainability of insurance companies. This proportion is even higher than 40 percent if the respondents have already received advertising or other information. "Insurers should see this as an opportunity to highlight their contribution to sustainability through increased communication and credible examples," says Lukas Linnenbrink.
28 percent will save on insurance cover in future
The high level of inflation, particularly since the war in Ukraine, has had a particularly strong impact on respondents when it comes to buying food and heating, but less so when it comes to investments and insurance. The majority of respondents are still able to cope with the consequences of inflation. Many have taken savings measures, most frequently (64%) in the area of energy. If inflation continues or increases, an increase in savings measures in other areas of private consumption can also be expected. More than one in ten respondents would then save on insurance in addition to the current 17%, bringing the total to 28%. "This could jeopardize livelihood security and pension provision," says Linnenbrink.
Two thirds of those surveyed explicitly do not consider sustainability to be a passing fad. However, 40 percent put sustainability on the back burner as long as prices continue to rise. Conversely, 44 percent are prepared to change their behavior. "These changes in behavior are mostly associated with doing without and saving money, repairing or reusing used appliances," reports study co-author Prof. Dr. Jens Mörchel. "This is an opportunity for insurers to emphasize positive aspects of sustainability such as investing in new, better energy generation and sustainable products with the help of their investments and insurance investments."