More and more people do not mind sacrificing a little privacy to receive insurance at lower costs, a new study has shown.
According to a report entitled Consumer Connectivity Insights 2018 released by MuleSoft, a survey of more than 8,000 customers globally showed there is an open appetite for the use of social media and IoT data if it leads to a more individualized service and reduced premiums.
The survey found that 44% of customers would be happy for insurance providers to use third-party data from the likes of Facebook, or collect data about them from smart home devices and health monitoring apps, to potentially personalize their service and lower premiums.
The findings were more stark in case of young people as the survey found that 62% of 18- to 34-year-olds were open to the concept of sacrificing privacy to a certain extent. There was a geographical discrepancy, however, with those in Singapore (63%) and the US (49%) showing the most willingness, while those in the UK, at 36%, were actually the least open.
Though more data will enable insurers to provide a more wholesome experience to their users, even existing data isn’t being garnered to its fullest extent and insurers are already struggling to deliver a connected experience before even considering how they bring all these new data sources into the equation.
There does appear to be a disconnect with the service that insurance is currently providing. The survey found that insurers are seemingly lacking when it comes to knowing about their customers’ preferences with 58% believing insurers offer a “disconnected” experience, while 56% would even consider changing insurer because of a disconnected experience. Those in Australia (67%) and Singapore (63%) were the most likely to consider a change.
Other insights expressed in the survey included that 46% of customers believe applying for insurance should take no longer than one hour; and nearly half – 45% – would like to use services such as WhatsApp, Facebook Messenger and Viber to interact with insurers.