The majority of Americans (87%) are comfortable sharing personal and lifestyle-focused data for the benefit of lower insurance premiums, according to an insurance industry study conducted by DXC Technology.
As part of the study, entitled 2020 DXC Insurance Survey Report, more than 2,000 US consumers were surveyed on their views about insurance and how they interact with those providing coverage. The study highlights how shifting consumer expectations are presenting opportunities for insurers to adopt and strategically deploy digital technologies – not only to gain market share and boost lifetime customer value, but also to assert their brands as exemplars of a new, more collaborative concept of the insurer/policyholder relationship.
Significantly, the study reveals Americans’ perspectives on the insurance industry and insurers’ offerings. Some highlights of the study’s findings included that:
- The insurance industry’s reputation is good, but more can be done to build trust.
- Eighty-one percent of Americans rate the insurance industry’s reputation as “average” or “above average,” while only 2 in 5 Americans trust providers to have their best interests at heart.
- Forty-three percent of consumers believe that half or fewer of claims are successfully paid, despite the actual figure being above 90%.
- Demonstrating the benefits of going digital will drive customer loyalty and create opportunities for insurers to offer new products and services.
- Forty-five percent of Americans are comfortable with wearable devices, and 43% are comfortable sharing the data from those devices with an insurer in exchange for benefits.
- Roughly 43% of Americans are comfortable with the insurance industry using technologies such as chatbots and AI to assist with insurance applications and claims.
- Among Americans aged 18 to 44, 43% prefer to file claims through digital channels; more than half (54%) of Americans believe an insurer’s app must be as easy to use as consumer apps.
“By embracing new technologies, infrastructure and partner solutions, insurers can transcend the traditional insurance proposition to be more proactive partners in helping customers manage risk and prevent losses,” said Phil Ratcliff, vice president and general manager of global insurance for DXC Technology. “Insurers are in a position to improve loyalty and elevate their brand by helping consumers understand how their products and services work and by continuing to improve the claims experience. The insurance winners of tomorrow will be defined by their ability to place the consumer at the heart of their strategies today.”