Consumers are willing to trade personal data for cheaper insurance
Published: March 20, 2019
Updated: April 1, 2019
Author: Luke Jones
CATEGORY: Industry News
In a current climate of data breaches, it is perhaps surprising that nearly 60% of customers would share personal information with an insurance company if it meant they could receive discounts.
A new study from Accenture shows over half of respondents would shows location information and data on their lifestyle for discount benefits. Interesting, the Financial Services Consumer Study does not just look at the insurance industry, but instead any sector involving financial transactions.
Accenture surveyed 47,000 people across 28 markets. Despite a willingness to trade personal information for financial benefits, 75% of consumers say they are cautious about their data privacy. Those customers said a privacy breach would be the second biggest reason for them to leave their bank or insurance provider.
“Consumers share personal data to make their lives easier, or more interconnected, and this is extending to how we manage our personal finances,” said Piercarlo Gera, senior managing director at Accenture’s financial services practice.
“Although consumers want banks and insurers to use their data to play an active role in improving their lives, banks should tread cautiously, ensuring they fully understand their customers by providing relevant, in-the-moment offers while continuing to safeguard customer data. This is a call for banks and insurers to see their customers as people with needs beyond their bank accounts and premiums.”
Consumers are willing to swap their data for insurance premiums discounts, with 64% revealing they would take adjusted car insurance costs based on telematic data of their driving habits. Usage-based insurance and telematics monitor driver behaviour, such as speed, distances travel, and how frequently a vehicle is used.
Importantly, Accenture’s survey was carried out over various markets, allowing a snapshot of the differing opinions on data sharing around the world. For example, 50% of consumers in the United States would share data for services, in contrast to just 40% in Germany and the United Kingdom.
In China, perhaps reflecting the country’s strict laws on data, 67% of customers would hand over personal information for reduced cost services.