Belief deficit: How one can encourage shoppers to share knowledge
My first two blogs about Accenture’s survey of over 22,000 European insurance consumers highlighted a growing demand for certain types of personalized services – life and health insurance, where premiums are linked to a healthy lifestyle, for example, or car insurance with premiums that based on driving behavior.
In order to do this successfully, however, insurers need to have access to certain customer data – and that is becoming more and more difficult. In the past, some consumers ditched their data without much thought. Today, with well-known data protection regulations and headline-breaking personal data breaches, they are much less willing to do so.
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Consumers who are reluctant to pass on data to their insurer were asked: Why are you reluctant to give your personal data back in order to receive certain additional services from your insurer?
Insurers need to rethink how they can trick consumers into sharing their data. The findings from our survey show two initiatives that can help.
1. Develop and communicate a clear exchange of values
What do insurance consumers want in return for sharing their data? It is important that a vague idea of personalized services is not enough: When asked which factors are most important when dealing with banks and insurers, it only came 12th on our list of 15 potential factors. Importantly, the appetite for general personalized services had not grown in the past two years.
It is only when certain types of personalized services are offered – like the aforementioned bespoke insurance packages – that consumers become delighted.
Second, in addition to personalized insurance solutions, consumers are willing to share some data in order to promise certain service benefits. For example, 67 percent would do this for faster or easier services.
And third, the cost is important: 64 percent would be willing to share some data for more competitive and lower prices, while 55 percent would do so in exchange for discounts on uninsured products and services.
This means that insurers must clearly state what consumers will get in return for sharing their data and then deliver it. Vague promises of unspecified benefits at a later date will not change it.
2. Restore confidence that the data will be handled with care
Giving consumers a good reason to reveal their information is only half the battle. Even if they are convinced of the benefits, consumers will not share data if they have a management concern.
Our survey shows that these concerns have increased over the past two years: only 31 percent of Europeans trust their insurer to take care of their data, compared to 40 percent two years ago. (Europeans are particularly skeptical. In North America, for example, 41 percent trust their insurer to look after their data.)
How can insurers begin to restore confidence? There is no silver bullet, but a good starting point is to convince consumers that adequate privacy controls are in place. This is because, along with a sense of urgency, consumers cite the main reasons for not separating their data from their data because they fear it could be sold to a third party or stolen from their insurer.
The exchange of data should benefit both insurers and consumers. However, this won’t be easy as confidence is falling and concerns about the rise in cybersecurity over the past two years. However, this is vital not least because consumers are using an ever-growing list of connected motor, home and health devices that allow insurers to radically expand their risk prevention and value-added services offerings.
It is therefore important that insurers can demonstrate that they can adequately protect personal data and help customers protect their data and their digital ID. Those who can do this will be able to build new personalized services and build closer and more profitable customer relationships.
It is therefore the responsibility of insurers to put in place strong internal controls and cybersecurity measures that govern how consumer data can be used and to communicate these clearly to customers. Finally, they should provide tools that customers can use to confirm their consent to share certain data sets and transparently manage that data over time.