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30 September 2019
Customers support increased use of digital technology but don’t trust insurers with their data, a survey by DXC Technology and analyst firm Telsyte has found.
Only 49% of respondents trust insurers to hold their personal information securely, while 47% trust that it will be used solely for the intended purpose.
“This reinforces how experiences that are shared and amplified in an interconnected world can challenge the perceptions of the insurance industry,” DXC Australia and New Zealand Insurance GM Michael Neary said.
“Despite data being a key component of digital insurance, the industry’s current reputation could hinder the growth of digital insurance as most respondents expressed reservations in providing data to insurers.”
Customers generally expect to save an average 16% on policies from digital insurers, but a third expect premiums will rise 13%, perhaps as more data would negatively alter their risk profile.
One-third of respondents identify digital claims processing as a technology factor that would improve their loyalty, 40% feel their insurer needs to use technology to improve claims handling and 40% are comfortable using chat bots to make claims or apply for cover.
Australia and New Zealand Institute of Insurance and Finance CEO Prue Willsford says the findings demonstrate a disconnect between customers’ perceptions of the industry and actual experience.
“The majority of people felt that successful claim rates were 60% or less, not the 95% we know it to be,” she said.
“Given the findings that 67% of respondents would not recommend a role in the insurance industry, there is clearly a need to step back from the challenges upon us and shift this perception by acknowledging the achievements and accomplishments we do every day.”
The findings are based on a survey of 2100 people.