Nine out of 10 policyholders will share additional personal data with their insurer to secure more tailored products and services, cheaper premiums or other benefits
Survey highlights focus on value for money, affordability of premiums, and trust in brands when buying insurance
Capco, the global technology and management consultancy, published its 2023 survey of US insurance policyholders, highlighting consumer attitudes to insurance, key innovation trends, and opportunities for insurers to increase trust and engagement. The new research reveals consumers’ heightened appetite for personalized insurance offerings attuned to their life circumstances and values. The survey also highlights consumers’ willingness to share additional personal data to secure tailored products or services, enjoy cheaper premiums and benefit from an enhanced claims process.
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“US insurers made huge leaps during the pandemic in terms of digital maturation and are now better equipped to drive digital enablement. The learnings and innovations from this period will be incredibly valuable as insurers investigate new ways to build truly personalized product offerings for consumers.”
The survey, which polled 1,000 US policyholders between the ages of 18 and 65 years, found that 89% of respondents are willing to share additional personal data – a 17% increase over the past two years. Consumers’ preferred method of data sharing is smart devices in the home (45%), followed by smartwatches/wearables (36%) and fitness health tests (36%).
The survey findings also highlight that consumers, feeling the pressure of inflation, are placing greater emphasis on affordable premiums, value for money, and brand reputation when they shop for insurance products. Among an additional cohort of non-policyholders contacted during Capco’s research, the top reason for not buying insurance is cost.
The survey report recommends that insurers ‘target, innovate and invest’ to deliver the data-driven experiences and products that will satisfy customers’ expectations and enhance their levels of engagement and loyalty. Insurers should also focus on remaining agile and future-focused in an ever more digitalized insurance landscape.
Lance Levy, CEO of Capco, said: “US insurers made huge leaps during the pandemic in terms of digital maturation and are now better equipped to drive digital enablement. The learnings and innovations from this period will be incredibly valuable as insurers investigate new ways to build truly personalized product offerings for consumers.”
Ernst Renner, Partner & US Insurance Lead, said: “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. 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.”
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Capco’s US insurance survey captures consumer attitudes across several areas, including types of policies held, levels of confidence and knowledge about insurance products, preferred channels for purchasing coverage and communicating with insurers, and claims management experiences. Key findings include:
Long-term savings such as investment-linked insurance, annuities and endowments are #1 in the top five most desired personalized offerings.
- Long term savings (80%); income protection (79%); pet (74%); travel (74%); mobile phone/gadget (68%).
Women are more likely to hold only one insurance policy and to feel uninformed about available insurance products.
- Single policyholder – 43% of women, 26% of men, 35% of all respondents (up from 30% in 2021).
- Feel well-informed – 74% of women, 85% of men, 79% of all respondents; overall, there has been 16% increase in the number of policyholders who consider themselves well-informed.
Women, older adults (55-65 years), and policyholders with children are least comfortable sharing additional personal data.
- Men, married individuals, and higher income respondents are more open to data sharing.
- Only 5% of respondents do not trust their insurer with any additional personal data.
Value for money and affordable premiums are important to everyone, but particularly for older adults and women.
- Value for money – 42% of all respondents, 53% of older adults, 47% of women.
- Affordable premiums – 42% of all respondents, 63% of older adults, 49% of women.
Only 21% of survey respondents holding multiple insurance policies use a single insurance company to meet all their coverage needs.
- Average number of polices held – 2.32; average number of insurers used – 2.61.
Capco’s 2023 US insurance survey can be downloaded here. Additional country market reports will be published in the coming weeks. Capco’s latest global insurance survey was conducted during February and March 2023 and collected responses from 13,750 policyholders aged 18 to 65 years across the US, UK, Canada, Brazil, Germany, Switzerland, Belgium, Poland, Italy, Hong Kong, Greater Bay Area (ex Hong Kong), Singapore, Thailand, and Malaysia.
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