Gen Z, millennials most willing to share data for tailored policies
While the willingness to share data is there, the desire varies depending on the type of information being collected.
Nearly half (47%) of Gen Z and 40% of millennial policyholders are willing to share data from smart home devices with an insurance company to unlock personalized products and services, according to a survey by technology and management consultancy Capco.
The survey also revealed the top reason for not carrying insurance is due to the cost. In fact, the value proposition was the top decision-making factor when buying insurance across generations. However, Capco reported insurance companies could better reach uninsured people by leveraging this interest in sharing data in order to get more personalized policies.
“The power of digitalization has increased the demand for immediate satisfaction,” Ernst Renner, partner and U.S. head of insurance at Capco, said in a release. “Consumers don’t want to submit information and wait for a decision or provide a call-back number for a customer representative to get back to them; they want the answers right away so online systems (websites or apps) and call center operators must be enabled with the information for immediate responses. While the pandemic pushed many insurers to make strides in how they digitally engage with customers, our research shows that there’s still plenty of work to be done.”
While around half of consumers are willing to share data from a smart device, the type of information being collected has a major impact on the desire to participate in these types of programs. For example, people are reluctant to share personal health data. Similarly, less than 20% of policyholders said they’d be willing to install a “black box” that monitors driving habits such as braking and acceleration, Capco reported.
When it comes to the home, sharing information from cameras makes most consumers leery, but devices that detect water leaks, window breakage or smoke are welcome.
Further, 70% of millennials surveyed said they would use an app that provided personalized insights and gave them better visibility over financial products, including insurance policies. Yet, just 8% of the cohort currently uses such products.
Related: