Customers Don’t Want to Buy Insurance from Big Brother

by Craig Beattie, March 19, 2014
Industry Trends

Abstract

Celent sought to understand whether customers were ready to receive messages from the insurance industry that advances in analytics, Big Data, and social technology could allow. The answer from 2,642 US and UK customers was no.

On a scale of hating our messages to loving them, the mean response to our survey was at best neutral, and for most of them much nearer to the hate end of the scale.

However, this simple analysis hides some subtleties. Each message has fans who said they would love to receive it from a financial institution.

In the report Customers Don’t Want to Buy Insurance from Big Brother, Celent examines the responses and seeks to help insurers understand how to recognise groups likely to respond well to them, and those that would respond badly.

“Most people will hate receiving messages that imply the organisation has gone a step further in understanding their data. Either we’re too early, or this must be an opt-in process,” says Craig Beattie, Senior Analyst with Celent’s Insurance Group and author of the report, “What surprised us, though, was that each message had people who would love to receive it. Given that this was typically in the younger age groups, we’re going to be seeing this kind of interaction in the future.”

This report looks at the prospect for more context-aware messaging to customers linked to financial products, and the likely more favourable responses to such messages in the future.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

The Messages

2

Overall Response to the Messages

4

 

It’s About Sharing Behaviour, Not Technology Affinity

6

 

Successive Generations Respond More Positively

7

 

US and UK Attitudes Differ

8

 

Those Collecting and Sharing Data Responded More Positively

9

 

Don’t Criticise Customers’ Behaviour

10

A Special Note on Using Your Customer’s Location

11

 

Sharing Location and Age

11

 

Using Location Data Collectors

13

Mining for Lovers

14

 

Who Would Like Message 7 — The Most Popular

15

 

Who Would Like Message 2

16

 

Who Would Like Message 1

17

 

Who Would Like Message 6

18

 

Mining for Lovers

19

Conclusion

20

 

Next Steps

20

Appendix: Survey Structure and Method

21

 

Method

21

 

Overview of Respondents

21

 

Conclusions for Each Message

24

Leveraging Celent’s Expertise

26

 

Support for Financial Institutions

26

 

Support for Vendors

26

Related Celent Research

27

Sign in to download reports and access personalized information