Customers more willing to share personal data with insurers
Around 79% of respondents to a Capco survey said they consider themselves well-informed about the insurance products available to them.
Insureds are loosening up a bit when it comes to what they share with their insurers, and 89% of customers in the U.S. say they are willing to share more personal data with their insurer than they already do in order to maximize their premiums savings and receive services better tailored to their needs. According to Capco’s recently released 2023 U.S. Insurance Survey, this shows an increase of 17% compared to their 2021 survey.
Those most comfortable with sharing additional personal data were men, married individuals and higher-income customers.
“The year ahead will be pivotal for building new relationships with consumers through hyper-personalized offerings, delivered at just the right time in just the right way,” Ernst Renner, partner & U.S. insurance lead, said in a release. “Partnerships between insurers and external parties will facilitate creative solutions in both product scope and market reach. Carriers should be refining the capabilities required to simplify data exchange and the flow of digital interactions across the ecosystems that are now such a strategic focus for the industry. At the same time, they will need to navigate a range of associated technical, security and regulatory challenges that will impact both their legacy portfolio and fresh initiatives.”
Post-pandemic, consumers’ insurance needs have shifted as many have seen a change in the things in their lives they value and, therefore, want to protect. For many, the survey found, this means an increased focus on quality of life and financial fluidity, which has increased demand for things like travel, pet and consumer goods coverage.
Respondents to Capco’s survey favored personalized products, particularly those involving long-term savings (80%), income protection (79%), pets (74%), travel/holiday (74%), mobile phone/gadgets (68%) and home/property (67%).
“US insurers made huge leaps during the pandemic in terms of digital maturation and are now better equipped to drive digital enablement,” Lance Levy, CEO of Capco, said in a release. “The learnings and innovations from this period will be incredibly valuable as insurers investigate new ways to build truly personalized product offerings for consumers.”
Around 79% of respondents said they consider themselves well-informed about the insurance products available to them — an increase from the 63% who said the same in 2021. The most confident in their insurance knowledge were men (85%), high-income individuals (92%) and families with children at home (87%).
The survey also found that many opportunities exist for the insurance industry to cater to under-served populations. This could be achieved with a personalized approach that involves price-sensitive products, insurance education and web-enabled support solutions.