Most under-35s OK with insurers digital spying if it cuts prices
A recent survey found 56% of respondents said they would switch their insurance provider if digital service is poor.
(Bloomberg) – The majority of people between 18 and 34 would be willing to let insurance companies dig through their digital data from social media to health devices if it meant lowering their premiums, a survey shows.
In the younger group, 62% said they’d be happy for insurers to use third-party data from the likes of Facebook, fitness apps and smart-home devices to lower prices, according to a survey of more than 8,000 consumers globally by Salesforce.com Inc.’s MuleSoft Inc. That drops to 44% when the older generations are included.
Older generations less likely to approve
As consumers share more of their personal data online, governments increased their scrutiny of how it’s collected and used following the harvest of 61 millions Facebook users’ accounts by U.K. firm Cambridge Analytica. The European Union’s new privacy law, known as the General Data Protection Rules, took effect on May 25.
Of the older generations, 45% of 35- to 54-year-olds are happy to allow insurers broad access to their digital identity, while 27% of those 55 and older would do so.
Insurers struggling to deliver a connected experience
Insurers are investing millions improving their digital offerings amid growing competition from fintech startups. But that’s a work in progress: 58% of the survey’s respondents said that systems don’t work seamlessly for them, with many citing difficulty filling out a form online. And 56% said they would switch their insurance provider if digital service is poor.
“Insurers are already struggling to deliver a connected experience,” said Jerome Bugnet, EMEA client architect at MuleSoft. That is happening “before even considering how they bring all these new data sources into the equation.”
Related: Personalization is critical to a successful customer experience, KPMG finds