Trust in data security tumbles while interest in UBI grows

When it comes to personal data concerns, consumers say they have major security concerns but are increasingly willing to share more data points with insurers in the chase for lower premiums, according to Accenture research.

This research follows news that usage-based auto insurance is poised to grow around 25%.

In fact, only 32% of respondents said they significantly trust insurers to care for their data, down from 40% in 2018, according to the survey of 47,000 global consumers. However, almost seven out of 10 consumers reported a willingness to share “significant data” on factors such as driving habits and health to secure lower premiums. Additionally, 66% said they would share significant data to prevent loss or injury.

Even when excluding data breaches, nearly 40% of consumers said they are reluctant to give up personal data because they consider it too intrusive. Two years ago, only a quarter of consumers said the same, according to Accenture. The professional services company notes this might be less about insurers’ trustworthiness and more about growing consumer concern around maintaining control of their data.

“Consumers are embracing the data-for-personalized-pricing trend and want insurers to reward their efforts to improve their well-being, but it comes with a warning that trust is waning, and they want to feel in control of their data,” Kenneth Saldanha, leader of Accenture’s global insurance industry group, said in a release. “Insurers are creating tech-driven partnerships to provide their customers with flexible, personalized insurance offerings based on behavior, but they’ll need to be transparent and responsible with their customers’ data for these partnerships to succeed. To earn consumers’ trust, insurers will need to show that their customers’ well-being is at the core of their business.”

Digital tools desired but human touch still key to trust

Global consumers across demographics are also looking for insurers to deploy digital services, such as internet chat and video claims processes, as replacements to traditional procedures. In fact, Accenture found that 71% of survey respondents older than 55 years of age would like to use these types of digital tools.

Digital can also be leveraged in marketing to help insurers stand out in a crowded marketplace.

Although interest in digital tools is growing, consumers still trust human advisors more than digital touchpoints for some services. For example, nearly half of consumers trust a human advisor when making an insurance claim. In comparison, just 12% trust automated services, and only 7% have faith in chatbots.

“Insurers still have much to do to fully address new customer behavior caused by the pandemic, including permanently raised expectations regarding digital experiences,” Todd Staehle, who leads the insurance industry group for Accenture Interactive, explained in a release. “Insurers need to master a delicate balance, offering simple, self-service digital options as well as the human touch for more complex issues that require empathy or nuanced advice. In order to embrace long-term change, it’s critical for insurers to empower their people with the right insights and technologies to better serve customers and increase trust.”

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