The survey, which canvassed over 2,000 US consumers to gauge their impressions of consumer insurance and products, found that almost half of 18 to 24-year-olds (47%) and 25 to 34-year-olds (40%) surveyed said they would share their home smart device data with an insurer, showing an opportunity for insurers to achieve greater personalization in exchange for personal data.
In terms of how this interaction between insurer and consumer is managed, Gen Z’s have an overwhelmingly preference for the use of technology, in particular apps. While the survey saw a strong demand for apps across all generations, among 25 to 34-year-olds 70% said they would use an app that provides personalized insights and gives them better visibility of all their financial products (bank accounts, retirement plans, insurance policies).
“Consumers don’t want to submit information and wait for a decision or provide a call-back number for a customer representative to get back to them; they want the answers right away so online systems (websites or apps) and call center operators must be enabled with the information for immediate responses,” said Ernst Renner, a partner at Capco and US head of insurance at the consulting firm.
However, for “while the pandemic pushed many insurers to make strides in how they digitally engage with customers, our research shows that there’s still plenty of work to be done,” he added.
When it comes to buying insurance, survey respondents see ‘value-for-money’ as the top decision-making factor. This is true across every generation, gender, level of industry knowledge, and educational background.
Meanwhile, most policyholders reported no change in the level of trust (59%), nor concern, since the onset of the Covid-19 pandemic. However, 41% of respondents are doubtful about their existing level of insurance protection in the wake of the pandemic.
The US results are part of a larger survey of 14,000 global consumers across 13 markets. Across all markets, Capco identified digitalization, hyper-personalization, and “value-for-money” as key priorities for the insurance industry.
