Zurich Insurance study reveals empathy is the competitive edge companies shouldn’t ignore
Zurich Insurance Group’s new global study, “Addressing the Empathy Gap: How human connection can give businesses a new competitive edge,” reveals that empathy is now a crucial competitive differentiator that businesses, particularly financial services, can no longer afford to overlook.
The research, conducted in collaboration with renowned empathy academic Professor Jamil Zaki of the Stanford Social Neuroscience Laboratory, highlights a significant disconnect between what customers expect and what companies deliver, with tangible financial consequences for brands.
The study, based on a survey of over 11,500 consumers across 11 countries, found that nearly three-quarters (73%) of consumers globally say they would actively avoid using businesses that show a lack of empathy towards their situation or circumstances. This avoidance is translating directly into lost business, as 43% of those surveyed have already left a brand in the past due to a perceived lack of understanding or care. Conversely, a majority (61%) of consumers would be willing to pay more for a brand that genuinely cares about them and their needs.
While acknowledging the utility of AI and 24/7 availability, the report firmly establishes the enduring value of human connection. The vast majority (92%) of consumers value direct human interaction over constant technological access, with 71% believing that artificial intelligence cannot genuinely recreate authentic human connections.
The findings are especially pertinent for the financial services sector. The study revealed that empathy is highly expected in the industry, second only to healthcare providers, with 88% of consumers deeming it important. However, only 63% agree that the industry currently demonstrates genuine empathy, highlighting a measurable ’empathy gap’.
To bridge this divide and build more resilient customer relationships, Zurich recommends that businesses treat empathy as a core, measurable business strategy. This involves making empathy a central part of long-term strategy, ensuring leadership models empathetic behaviour, and investing in bespoke training for frontline employees.
The insurer notes that 26% of its own global workforce has completed almost 46,000 hours of internal empathy training since its program launch. Ultimately, the report stresses that the future lies in strategically blending technological efficiency with authentic human interaction, using AI to support but not replace personal engagement in critical customer moments.
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