Insurance customers want convenience and climate protection, but it must be built on trust – InsuranceNewsNet

The data-driven future of insurance will only become a reality if insurers can convince customers of the benefits of data collection

DUBLIN & LONDON–(BUSINESS WIRE)–
Consumers are beginning to look to their insurance companies for the same conveniences as they do in other areas of their lives. That’s according to a report* published by Guidewire (NYSE: GWRE), which also found that insurance customers are open to new services that mitigate risk and believe insurers should be proactive in addressing climate change.

Insurance customers are starting to think about how their insurance policy fits their lifestyle. While only 12 percent of respondents had a usage-based insurance (UBI) policy, 54 percent of people could see the value of one. Of those who had a UBI policy, the fact that the policy suited their lifestyle was the top reason (37%) they chose it.

When it comes to proactive services that mitigate risks, such as For example, leak detection, more than six in ten (61%) respondents said they would like access to such a service if their insurer offered it. In terms of other types of risk that could be mitigated, access to real-time data on plumbing to detect leaks (21 percent), driving (20 percent), and home heating systems (19 percent) ranked highest. Customers would feel most comfortable sharing their data regarding these risks with their insurer.

Regardless, with the growth of more proactive services and UBI, the data collection issue for the insurance industry will be difficult to address. At this point insurance customers in the United Kingdom are much more conservative than their peers elsewhere Europe. Less than a quarter (24%) of respondents believe that collecting more data from insurers is a good thing to improve services and lower prices, with 28% unable to understand why insurers think so that they need this amount of data about their customers; consider this an invasion of privacy. More than a third (36%) can understand why insurers would want to collect the data but would rather not. Insurers need to earn consumer trust in data collection if they are to be successful. While many (44%) believe the UBI represents too great a loss of privacy for them, 46% neither agree nor disagree if this is the case.

Rene Schoenauer, Director, Product Marketing – EMEA, Guidewire, said: “Consumers are now much better informed about their privacy and how data is collected about them, which means insurers need to build trust quickly when offering their maintain and expand business. Insurers are looking for new services or tighter segmentation to improve their profits, but without permission to collect the data needed to underpin those services, they won’t be truly successful. Help customers understand how collecting and using their data will help them and educate them about the benefits, e.g. B. Personalization is an equally important investment as the development of advanced AI models or IoT solutions. You can’t have one without the other.”

Insurance customers expect insurers to make their contribution to climate protection

Insurance customers are also beginning to think that insurers should respond to climate change, but consumers shouldn’t United Kingdom are less willing to take on higher costs than their counterparts in other European countries:

• United Kingdom Insurance customers are most likely to think that insurers should invest more of their profits in supporting environmental projects and sustainable start-ups (33 percent).

  • This is also the most popular option in Spain (37 percent), while in Germany Insurance customers are most likely to think that insurers should use their position in global markets to influence the actions of polluting companies, but not distance themselves from them (31%).

• in the Francefocusing on repairing damaged goods rather than replacing them is considered the best course of action (33%).

• United Kingdom At 30 percent, consumers are at least twice as likely to believe that combating climate change is not the responsibility of insurers United Kingdom Respondents who hold this opinion compared to the next highest Franceat 15 percent, with Germany (14 percent) and Spain (13 percent) even lower.

• In which United Kingdommeans that they are less willing to take on increased costs themselves.

  • France (44 percent), Spain (44 percent) and Germany (53 percent) are significantly more likely to opt for eco-insurance – although the policy is more expensive and the additional money is used to offset the CO2 emissions generated during the insured activity.

  • For insurance customers, the figure is 31 percent United Kingdom.

“With severe weather events over Europe and the world over the last 12 months, insurers clearly have a role to play in combating climate change. Whatever course of action insurers take, they should be clear and transparent about the difference they are making. In this way they can demonstrate the positive role of insurance in our lives, which all too often goes largely unnoticed,” adds Schönauer.

*Guidewire commissioned market research agency Censuswide to survey a representative sample of 1,000 insurance customers aged 18 to 55 about their insurance preferences. The survey took place in May 2022. The aim of the survey was to provide the latest insights into how United Kingdom General insurance customers look at insurers, their products and services. Guidewire commissioned simultaneous, parallel reports United Kingdom, France, Germany and Spain.

About Guidewire

Guidewire is the platform trusted by general insurers to engage, innovate, and grow efficiently. We combine digital, core, analytics and AI to deliver our platform as a cloud service. More than 500 insurers in 38 countries, from new businesses to the largest and most complex in the world, run on Guidewire.

As a partner to our customers, we are constantly evolving to enable their success. We pride ourselves on our unparalleled track record of implementation success with over 1,000 successful projects backed by the largest R&D team and partner ecosystem in the industry. Our marketplace offers hundreds of applications that accelerate integration, localization and innovation.

For more information, please visit www.guidewire.com and follow us Twitter and LinkedIn

NOTE: Information regarding Guidewire’s trademarks is available at https://www.guidewire.com/legal-notices.

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Daniel Couzens
Allison + associates

+44(0)203 971 4308

[email protected]

Louise Bradley
Senior Manager, Media Analyst Relations – EMEA

Guidewire software

+44 (0)7474 837 860

[email protected]

Source: guide wire