Customers aren't ready to receive messages from the insurance industry that are based on the customers' analytics and social media patterns, according to Celent's "Customers Don't Want to Buy Insurance From Big Brother" report.
"Most people will hate receiving messages that imply the organization has gone a step further in understanding their data. Either we're too early, or this must be an opt-in process," says Craig Beattie, senior analyst with Celent's Insurance Group and author of the report, "What surprised us, though, was that each message had people who would love to receive it. Given that this was typically in the younger age groups, we're going to be seeing this kind of interaction in the future."
The survey of 2,642 people in the U.S. and the U.K. seeks to help insurers understand how to recognize groups that would be likely to respond well to 8 potential messages. On a scale of hating these messages to loving them, the mean response to Celent's survey was at best neutral, and, for most of the messages, much closer to the hate end of the scale.
Survey respondents were asked to rate each message on a scale of 1 (hate) to 7 (love). No message received a positive average response (5 or greater) across the group of respondents. Younger people are more likely to respond positively to the messages, as are those people who collect or share data. It's not about "familiarity with technology" the report states. "Target social media users rather than smartphone owners and geeks." And above all, avoid criticizing the behavior of the message recipient.
Messages & Conclusions (in order from most liked to least liked)
1. The area you are about to walk/drive into has seen 14 muggings and 3 violent deaths in the last 3 months, could you take an alternate route?
Mean response: 4.04
Conclusion: This message generated a love-hate response, with hate being in the lead by a small degree. Younger respondents offered a balanced set of responses, with a neutral response being quite common, whereas older respondents tended to stick to the extremes. A good proportion of the over 65s "loved" receiving this message.
2. The item you just purchased is available for 10% less at a short distance from your current location, click here for more details
Mean response: 3.85
Conclusion: The descriptive statistics suggest a balanced response to this message. Present sharing style is a strong indicator of response to this message, although even some active sharers scored a 1 for this message. A service where customers could volunteer for these messages is advised. Regarding data that the respondents already collected about themselves, both location data and personal finance data played a role in positively influencing the results, perhaps offering a better clue as to the type of customer looking for this service.
3. We noted that you have checked in at a location outside the country, so we have pre-authorized your credit card for use there.
Mean response: 3.56
Conclusion: Celent recommends voluntary sign-up for this service. There are people who would respond to this message, but the majority of respondents had a strong negative reaction. While the younger age groups are more predisposed to liking this message, affluent middle aged groups who may be fans too. Also, for banks and credit card issuers, customers who regularly download and track their personal finance data may be more interested in this kind of service.
4. Your child's current driving style suggests they have a 1 in 3 chance of a fatal or very serious accident in the next year, please call us.
Mean response: 3.32
Conclusion: Celent theorizes that these results may be skewed as most think that young people drive badly.
Next page: Read the four least-liked messages
5. Recent news stories suggest that one or more of your investments is not in line with your personal values–please call us to discuss (i.e. not meeting green objectives, testing on animals, involved in war, etc.).
Mean response: 3.18
Conclusion:This message was broadly negatively received but was better received in North America and particularly by those with who are existing members of loyalty programs.
6. Given your age and DNA data, you are at risk of exercising too much, please consult with a physician about your fitness plan and request a review of your knees.
Mean response: 2.53
Conclusion: Age, gender and country of response all had an influence on the response. This is the only message that U.K. respondents rated higher than U.S. respondents and males were most likely to respond favorably.
7. Your current driving style suggests you have a 1 in 3 chance of a fatal or very serious acident in the next year, click here for driving tips.
Mean response: 2.51
Conclusion: There are two confounding factors here: First, most drivers do not consider themselves to be poor drivers, so the messaging appears overly critical and unlikely. Second, the example was considered by some respondents as too extreme, as seen in the feedback. Responding to the question therefore requires a little more role play. There is some evidence that younger respondents felt less strongly about this question and that those that avoid technology were more likely to hate receiving this message. A positive message (e.g., "Your driving style is good and you will receive a discount this month") may well have resulted in a more positive response.
8. We noticed you have visited four gambling websites recently. Your profile suggests that you may be susceptible to gambling addiction. Click here to talk to someone about coping strategies. In the meantime, we've now stopped these websites from charging your cards.
Mean response: 2.39
Conclusion: This is the least well-received of all the messages. This could be due to how the message is phrased, as well as the result of the privacy implications.
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