Got Data? Gauging US Consumer Willingness to Use Smart Technology and Share Private Data

by Mohammed Mahfuz, February 14, 2017
Industry Trends
North America

Abstract

US consumers want more mature smart technologies that can deliver lower costs, faster services, and more personalization. If insurers want consumers to share their data, they should know consumers want something for it.

Celent has released a new report titled Got Data? Gauging US Consumer Willingness to Use Smart Technology and Share Private Data. The report was written by Mohammed Mahfuz, an Analyst in Celent’s Insurance practice.

Insurers may be trying to implement the latest trends in smart technologies, but in order to do so successfully they should know the impact these tools will have. Emerging technologies such as robo advisors, chat bots, and artificial intelligence can change the traditional insurance model and have the potential to generate value in a variety of ways.

Consumers do not want to waste their time when looking for information and require instant understanding of the interaction interface offered by insurers.

The biggest reason to share data is to obtain a premium discount. Consumers have a high appetite and curiosity for bots and robo advice, and insurers should grasp the opportunity to investigate how they can invest in these technologies to generate higher value in customer interactions.

“As people start to move toward mediums that are inherently digital and away from human touch mediums (landline phones, in-person), insurers will have to enhance their digital solutions,” says Mahfuz.

“Even if consumers are willing to share their data by authorizing its use, that doesn’t mean it will come for free. They will only provide data if they are given incentives to do so,” he adds.

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

 

Key Research Questions

1

Introduction

2

Report Methodology

3

 

About the Survey

3

 

Digital Savviness

3

 

Survey Participants

4

Past and Present User Experience

5

 

Service Preferences Are Changing with the Times

5

 

Insurers Need to Address User Experience Expectations

8

Data Collection, Use, and Willingness to Share

11

 

Approaches to Collect Private Consumer Data

11

 

Consumers Collect and Manage Useful Data for Insurers

11

 

Use of Social Media Data

13

 

They Want Incentives for It

17

Smart Technology Adoption

19

 

Today’s Consumers Like Smart Technologies

19

 

And They Have High Expectations of Them

20

 

But the Industry Perception Is Not so Great

21

Final Thoughts

23

 

The Need to Stay Informed About Data and Smart Technologies

23

 

Actionable Recommendations

23

 

Avoid the Big Revolution

23

Leveraging Celent’s Expertise

25

 

Support for Financial Institutions

25

 

Support for Vendors

25

Related Celent Research

26

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