Insight | Data
Data use increases to create products and target offers
Insurance brands are increasing their use of data both in product creation and marketing to more effectively target offers. The trend is toward linking additional datasets with the traditional insurer datasets, such as applications. The brands are looking at self-generated datasets, like the trackers that consumers may agree to place in their car, or third-party supplemental behavioral data collected by smartphone apps that is available for purchase. Geo-location data that shows multiple visits to home furnishing stores might indicate a potential candidate for homeowners’ insurance, for example. Some of the life insurance brands have also partnered with Google and Facebook. By requiring consumers to log into those social media sites to apply for insurance, the brands may have access to rich data about the applicant.
EVP Strategy and Growth
Kantar, Insights Division
Insight | Technology
Tech can change risk assessment, policy pricing
Technology can enable insurers to better assess risk and build personalized, behavior-driven policy pricing models. The barrier, however, is the tension between this possibility and increasing concerns about data privacy, particularly in insurance where brands have not historically been seen as acting in the best interests of customers. I suspect that there may be a generational component and there will be those who are more digitally native and confident around that sort of data-value exchange. For those people, technology-enabled risk management might take off—but only assuming brands build trust that the value exchange for that data is in service of the customer.
Partner, Brand Strategy
Kantar, Consulting Division
Insight | Relevance
Insurers looking for touchpoints, not transactions
Brands are going beyond the purely transactional relationship. They’re trying to understand people according to their lifestyles and life stages. And brands are looking at the relevant touch points. This change is partly driven by Millennials and Gen Z individuals who don’t want to be sold to, but instead prefer offers that are relevant to their personal circumstances and offer a real benefit. We’re seeing a lot of multi-policies, at least in the UK, with insurers promising better services and deals for people who insure their car, home, and other aspects of their lives. I believe we’ll see the next step of this progression, with insurance brands looking at all the aspects of people’s lives that could be insured.
Senior Client Director
Insight | Personalization
Start-ups move faster in race to personalize
We see a split in the market between two opposing poles. At one end, are the aggregators/Price Comparison Websites (PCWs), which are largely about price and account for about one-fifth of all the category advertising in the UK. At the other end are insurers attempting to build stickier relationships with consumers with technology-enabled offers that are more personalized without being too intrusive. However, the brands that are now personalizing most effectively through the use of technology are the challengers, not the big legacy brands. In one recent example, a start-up has created an online reverse auction where consumers post their insurance needs and insurance brands bid for their business. The big brands know that they need to do more personalization using technology, but they’re not there yet, in part because of privacy concerns that people have about sharing their data with big organizations and in part because many have legacy systems which would require updating.
Planning Director, Financial Services & Technology