A recent survey conducted by Sollers Consulting in collaboration with IPSOS reveals that insurance customers are far more open to sharing data than previously assumed by the industry.
The study, which encompassed 3,800 insurance customers across the UK, France, Germany, and Poland, indicates that a significant proportion of clients are willing to share data in exchange for premium discounts.
According to the survey findings, approximately one-third of insurance clients expressed their willingness to share data for premium discounts.
This opens up new opportunities for insurers to adopt data-driven strategies and better understand individual risks, leading to the development of more affordable and tailored insurance products.
The report highlights a growing trend among insurance customers towards embracing digital insurance products that require data sharing about the devices they use.
Notably, 34.5% of respondents would readily share data with their insurers to avail more cost-effective policies amid the challenges of inflation and a cost-of-living crisis.
Of the countries surveyed, Polish insurance customers emerged as the most open to sharing data for premium discounts, with 41.25% expressing interest in this option. Not far behind were respondents from Germany (36%), the UK (32.75%), and France (26.75%), demonstrating a significant appetite for data-driven insurance products across Europe.
The appeal of purchasing insurance coverage through digital products, such as motor telematics and on-demand insurance, was even higher than simply sharing data. On average, 46% of customers expressed interest in buying these digital insurance products.
On-demand insurance, which allows users to switch coverage on and off, stood out as the most popular, with an impressive approval rate of 51%. Usage-based insurance, like pay-as-you-drive, was also well-received, with an approval rate of 50.25%.
Car telematics, where driving behaviour is recorded through devices in the vehicle or smartphones, emerged as the most widespread and accepted data-driven insurance option.
Meanwhile, smart home insurance, though less prevalent, still garnered significant interest from about one-third of customers.
“Connected devices and IoT gadgets are producing a rapidly growing amount of data. New regulatory initiatives will allow customers to share their data with other companies. In the insurance sector, this will be beneficial for both customers and insurance companies,” says Mateusz Stasiak, Head of Data at Sollers.
As inflation and natural disasters contribute to rising insurance costs, customers are actively seeking alternative options. The willingness to share data for data-driven insurance solutions that offer more affordable policies demonstrates a shift towards personalised and cost-effective coverage.
In response to these changing preferences, experts anticipate insurance companies will invest in redesigning their data architecture and developing new customer-centric solutions in the coming years.
