More Consumers Willing to Share Lifestyle Data for Behavior-Based Insurance Premiums, But Trust in Data Security Falls, Accenture Report Finds

Rhea-AI Summary

Accenture's Global Insurance Consumer Study reveals a growing willingness among consumers to share personal health and lifestyle data with insurers in exchange for lower premiums, rising from 58% to 69% over two years. While two-thirds of respondents (66%) are open to data sharing for personalized services, trust in insurers has declined, with only 32% feeling they can safeguard their data, down from 40%. The report underscores the importance of transparency and the balance between digital services and human advisors in rebuilding consumer confidence.

Positive

• 69% of consumers willing to share health data for lower premiums, up from 58% two years ago.
• 66% of consumers open to sharing data for personalized injury prevention services, an increase from 54%.

Negative

• Trust in insurers to protect personal data has fallen to 32%, down from 40% in 2019.
• Only 12% of consumers trust automated digital services for claims, highlighting a preference for human advisors.

The number of consumers willing to share significant data on their health and other lifestyle-related habits with their insurer to reduce premiums has grown over the past two years, but their trust in insurers to look after that data has fallen, according to a new report from Accenture (NYSE: ACN).

Based on a survey of more than 47,000 consumers globally, Accenture’s latest Global Insurance Consumer Study provides a view of consumer preferences and trends in insurance, building on similar reports from 2019 and 2017.

At a time when insurers are launching tech-driven partnerships to improve customer wellness, approximately seven out of 10 consumers (69%) say they would share significant data on their health, exercise and driving habits in exchange for lower prices from their insurers, compared with 58% two years ago. In addition, two-thirds (66%) of consumers say they would also share significant data for personalized services to prevent injury and loss — up from 54% in the 2019 report.

But while consumers are more willing to share personal data, their concerns about intrusiveness and its impact on premiums have grown and their confidence in their insurers’ ability to look after their data has diminished. For instance, just under a third (32%) of consumers say they significantly trust insurers to look after their data, down from 40% in the 2019 report.

“Consumers are embracing the data-for-personalized-pricing trend and want insurers to reward their efforts to improve their well-being, but it comes with a warning that trust is waning, and they want to feel in control of their data,” said Kenneth Saldanha, who leads Accenture’s Insurance industry group globally. “Insurers are creating tech-driven partnerships to provide their customers with flexible, personalized insurance offerings based on behavior, but they’ll need to be transparent and responsible with their customers’ data for these partnerships to succeed. To earn consumers’ trust, insurers will need to show that their customers’ well-being is at the core of their business.”

As insurance becomes more digitized, human advisors can help restore trust

The report also finds that insurers will need to re-evaluate the role of human workers, particularly as COVID-19 has drastically accelerated the industry’s adoption of digital insurance services. For instance, the number of respondents over the age of 55 who said they would like the internet chat and video insurance claim process to replace the traditional in-office claim process increased by three percentage points to 71%.

However, consumers overall still trust human advisors more than digital touchpoints for certain services. One example: Half (49%) of consumers trust a human advisor in a branch when making an insurance claim, while only 12% trust an automated digital service and just 7% trust a chatbot.

"Insurers still have much to do to fully address new customer behavior caused by the pandemic, including permanently raised expectations regarding digital experiences,” said Todd Staehle, who leads the Insurance industry group for Accenture Interactive. "Insurers need to master a delicate balance, offering simple, self-service digital options as well as the human touch for more complex issues that require empathy or nuanced advice. In order to embrace long-term change, it's critical for insurers to empower their people with the right insights and technologies to better serve customers and increase trust."

Read the full report at: https://www.accenture.com/us-en/insights/insurance/guide-insurance-customers-safety-well-being

Methodology

Accenture surveyed 47,810 respondents across 28 markets: Australia, Belgium, Brazil, Canada, China (including Hong Kong), Denmark, Finland, France, Germany, Ireland, Israel, Italy, Japan, Malaysia, Mexico, the Netherlands, Norway, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, United Arab Emirates, the United Kingdom and the United States. Respondents were required to have an insurance policy and represented multiple demographical generations and income levels. The survey was conducted online during July and August 2020.

About Accenture

Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services—all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 514,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at www.accenture.com.

Accenture’s Insurance Practice helps P&C insurers, life carriers and reinsurers to redefine their business and operating models, enhance the digital experience for customers, and position themselves for growth in a digital economy. To learn more, visit: www.accenture.com/us-en/industries/insurance-index

Copyright © 2021 Accenture. All rights reserved. Accenture and its logo are registered trademarks of Accenture.

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FAQ

What does the Accenture Global Insurance Consumer Study reveal about consumer data sharing preferences?

The study shows that 69% of consumers are willing to share health data for lower premiums, up from 58% two years ago.

How has consumer trust in insurers changed according to the latest report?

Consumer trust in insurers protecting personal data has decreased to 32%, down from 40% in 2019.

What percentage of consumers prefer human advisors over automated services according to Accenture's study?

The study finds that 49% of consumers trust human advisors for claims, compared to only 12% for automated services.

What key factors are influencing the insurance industry according to the report?

The report emphasizes the importance of transparency, consumer control over data, and the balance between digital and human services.

How many consumers are interested in personalized services offered by insurers?

Approximately 66% of consumers expressed interest in sharing data for personalized services to prevent injury and loss.