Insurance is a historically mature and stable industry – both globally and in the UK. The reliable business strategies employed reflect this. However, as the expectations of UK consumers change, UK insurance regulations shift and the industry is disrupted by rapid changes in technology, the time has come for a new game plan. By embracing a Business of Experience, insurers can use these developments to their advantage.
The future of insurance depends on exploring new models of doing business to ensure relevance. Business models that capitalize on the benefits technology can bring for insurers while meeting a changing set of consumer demands will help insurers not only to remain relevant, but to grow. A recent Accenture global insurance survey, including 3,000 UK respondents, points to three key areas where C-suite leaders can take action to address these insurance trends.
Key UK consumer findings
UK consumers are expressing an ever greater interest in digital offerings that help them make safer, healthier, and more sustainable choices.
UK consumers are willing to exchange data for value
Our study shows that consumers’ willingness to share data in exchange for enhanced value is especially strong in health-related insurance products, such as life, long-term care and disability. Almost two thirds of consumers (64%) say they would share significant data on their health, exercise and driving habits in exchange for lower prices, an increase of 16 percentage points from two years ago.
However, consumers are still unsure over the safety of their data
Exactly one-third (33%) of consumers say they put a lot of trust in their insurers to look after their data, a decrease of 11 percentage points from two years ago.
This is hardly surprising, given that the number of cyberattacks against insurers has approximately doubled in the past two years. Although successful data breaches in the insurance industry have fallen by 42% since 2018, it’s evident that insurers face both an increasing cyber threat and a problem with consumer trust. Beyond concerns over data breaches, 46% of consumers say they are reluctant to give up personal data because they consider it too intrusive, up from 33% two years ago. This finding may well be less to do with insurers and their trustworthiness—and more reflective of consumers’ growing concerns about maintaining control of their data more generally. However, while data privacy is clearly a major concern for consumers, its rising importance creates a conflict. Despite their increasing unease about data privacy and security, consumers want personalised pricing and service—and are increasingly willing, however grudgingly, to share data to get it.
What matters to your insurance customer?
There’s no doubt that the effects of technology are disruptive. But insurers can harness that disruption to better connect with consumers for positive business impact.
New models of doing business that capitalize on how technology helps insurers meet changing consumer demands are essential. Consider with your team how those models may be applied based on your existing book of business and unique market positioning
By focusing on the areas our research highlights as important for insurers’ growth and relevance, you can lead your team into the future of insurance now.
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