Meeting European Consumer Digital Expectations: Considerations for Insurers

by Nicolas Michellod, February 23, 2017
Industry Trends
EMEA

Abstract

Analyst Perspective: While it is important that insurers are curious about new data gathering options and emerging technologies such as robo advisors, chat bots, artificial intelligence, and others, we think they should not rush to implement these new technologies. On the other hand, we think that it is crucial they try to anticipate how these technologies might impact their traditional model and identify the value they can generate not only for their customers but also for their core business (underwriting results).

Celent has released a new report titled Meeting European Consumer Digital Expecations: Considerations for Insurers. The report was written by Nicolas Michellod, a Senior Analyst with Celent's Insurance practice.

Celent surveyed consumers to understand their expectations about their digital interactions with insurers, their willingness to share data with them and also their level of adoption of smart technologies. This report details the finding of this survey with focus on Europe.

European consumers have high expectations for digital interactions, and the most digital savvy are clamouring to see insurers provide more intuitive self-service interactions going forward.

European consumers do not want to waste their time when looking for information and require instant understanding of the interaction interface offered by insurers. The main reason for sharing data with insurers is to obtain a premium discount. European 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.

“The growing demand from consumers, the need to collect new types of data to satisfy this demand. and the emergence of new technologies in relation to customer interactions allowing for more automation and intuitive communication force insurers to adapt their customers’ touch-points,”  Michellod commented.

“We think insurers need to consider new approaches to collect consumer and customer data and use smart technologies to improve the way they digitally communicate,” he added.

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 operating unit 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

Report Methodology

2

 

About the Survey

2

 

Digital Savviness

2

 

Survey Participants

3

Consumers’ Digital Expectations

4

 

Digital Transactions

4

 

Simple Transaction Preferences

4

 

Complex Transaction Preferences

6

 

User Experience Expectations

7

Sharing Data with Insurers

10

 

Approaches to Collect Private Consumer Data

10

 

Use of Social Media Data

10

 

Data Collected and Managed by Insurers

13

Smart Technology Adoption

16

 

Experience Using Smart Technologies

16

 

Expectations When Using Smart Technologies

17

 

Comparing Insurance with Other Industries

19

Final Thoughts

20

 

The Need to Stay Informed About Data and Smart Technologies

20

 

Actionable Recommendations

20

 

Avoid the Big Revolution

20

Leveraging Celent’s Expertise

21

 

Support for Financial Institutions

21

 

Support for Vendors

21

Related Celent Research

22

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