Guidewire released the latest edition of its annual insurance customer attitudes study* which reveals the opinions insurance customers have regarding the insurance industry and digital transformation.
The report highlights how factors such as the cost-of-living crisis, technology, and diversity and inclusion in the insurance industry impact customers' views of insurers.
Guidewire (NYSE: GWRE) today released the latest edition of its annual insurance customer attitudes study* which reveals the opinions insurance customers have regarding the insurance industry and digital transformation. The report titled, 'The Insurance Engagement Gap and its Impact on Perception and Innovation', highlights how factors such as the cost-of-living crisis, technology, and diversity and inclusion in the insurance industry impact customers' views of insurers.
The research found that opinions about the insurance industry are fairly fixed. A third (33 percent) of
Despite the widespread use of technology in people's everyday lives and the focus on digitalisation in the insurance industry, customers show a preference for traditional ways of contacting their insurers. The majority of customers prefer phone contact in the event of a claim (66 percent, a 10 percent increase on 2023) and email (50 percent, an 11 percent increase compared to 2023). When a customer has made a claim, these numbers increase, with contact via phone and email becoming even more popular than the average, 79 percent and 56 percent respectively.
Other key findings are:
Growing interest in usage-based insurance (UBI), however... - As customers are looking for greater flexibility from their insurance policies, almost half (47 percent) cited that as the reason to choose a UBI policy. Yet, only 10 percent of respondents have a UBI policy, a 4 percent decrease compared to 2023.
Embedded insurance is not quite embedded in customers' preferences - Like last year, 39 percent of respondents are comfortable buying insurance from companies like
AI is a part of our lives but... - There is a general acceptance of insurers using AI in a supporting capacity, rather than a decision-making one. Almost half (49 percent) of respondents are uncomfortable with AI being used to make decisions about the price of their insurance without human intervention, with a further 26 percent saying that they are very uncomfortable. However, 32 percent say that they would be comfortable with AI assisting insurers in filling out documents, and 30 percent would be comfortable with AI helping a human call handler answer their questions.
Protect my privacy - As insurers increase their use of digital and AI tools, customers are more concerned about how their private data is being collected and retained. There is a 6 percent increase year-on-year in the number of respondents who say that they cannot understand why insurers would feel the need to collect policyholder data (24 percent in 2024, compared to 18 percent in 2023). However, customers aged 18 to 24 years are the most likely to understand why insurers would collect more data, but almost half (47 percent) would prefer that they did not. This is not to say that
Is the insurance industry an exciting place to work? - In response to the question, 'Should the insurance industry be more optimistic about how it is viewed as a place to work, especially amongst younger age groups?' nearly half (47 percent) of 18-to-24-year-olds and 41 percent of 25-to-34-year-olds indicate that insurance is an innovative and exciting industry to work in, compared to banking, big tech, retail, and engineering. Similarly, when looking at these work sectors, perceptions of diversity in the insurance industry are positive, with 48 percent of respondents believing that it is a diverse place where you can work with lots of different people. This jumps to more than six in ten (63 percent) amongst 18-to-24-year-olds, which is the second highest score amongst all the sectors behind retail (70 percent).
Who makes insurance purchasing decisions? - It is much more common for people to be the sole decision-maker for insurance purchasing choices in their household (49 percent). When segmented by gender, 54 percent of men are the sole decision-makers, compared to 46 percent of women. Only 5 percent of respondents say that they take the advice of their insurance broker, however, this increases by 8 percent amongst those who have made a claim (13 percent). Whether it is a known insurance brand (39 percent) is the most influential factor when people are choosing which insurer to buy a policy from.
'It is also interesting that in an age where consumers freely share data with many other vendors and service providers, they still appear to be averse to sharing their data with insurers. The responses suggest that insurers still have a way to go in communicating and demonstrating the value the industry can deliver to improved pricing, better claims handling, and even loss prevention through enhanced use of data and technology,' continues McAllister. 'Given the potential for data and technology to transform how insurance is purchased and provided in the years ahead, this feels like a key area where the industry should focus its attention.'
*Guidewire commissioned an independent market research company, Censuswide, to conduct a study of insurance consumers in
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