Most consumers willing to share data to get cheaper insurance

Most consumers (72%) are willing to share some form of personal data to get cheaper insurance premiums, according to a recent report from Capco. The consulting firm surveyed nearly 14,000 consumers in 13 markets to gauge attitudes to consumer insurance.

Of the nearly three-quarters of consumers that would part with their personal data for discounts, 33% were willing to provide fitness and health tests, 32% would use home smart devices, and 29% would provide data from wearable tech like smartwatches.

Only 20%, however, were willing to share social media data.

“These initial findings highlight a sizeable consumer demand for the digitalization and personalization of insurance products and services, coupled with better financial insights and lower premiums,” Matt Hutchins, global insurance lead at Capco, said.

The survey also found that more than a third (37%) of respondents do not feel well-informed about insurance and the products available. A lack of knowledge is the top reason for not being insured (28%), followed by viewing insurance as unnecessary (25%).

Education level correlates with how confident consumers are about their insurance knowledge. Two-thirds of university-educated respondents felt well-informed about the industry compared to 57% of high-school graduates.

More than half of consumers (57%) told Capco that they want better online experiences from their insurers. Younger consumers were more enthusiastic about the prospect of using an app to manage their insurance, at 77% of 25-to-44-year-olds compared to 47% of 65+ consumers.

The Capco report also identified an opportunity to increase cross-selling – which can aid in improving retention, among other benefits. Less than half insurance customers (40%) said they had multiple policies with the same provider.