The Connected Consumer Report 2017, which looks at the quality and consistency of consumer experiences across different industry sectors, reveals that more than half (56 per cent) of UK consumers believe that insurance companies provide a disconnected experience across online and offline channels. Furthermore, nearly two-thirds (63 per cent) of UK consumers said a disconnected experience would make them consider changing their insurance provider.
“The insurance industry has always been data-driven, and today it is being presented with vast amounts of new data from social media, wearable technology and the internet of things. Encouragingly for insurance providers, a significant number of consumers appear to be happy to share such data if it means they would receive personalised services and lower premiums,” said Jerome Bugnet, Industry Technology Evangelist at MuleSoft. “While consumers are happy with sharing personalised data with insurers, the legislators still need education, as it was only last year that Facebook banned Admiral Insurance from using its data to help set car insurance premiums. Since customer demand is there, we expect it is only a matter of time until use of social media data is commonplace. Insurance providers should start preparing by putting an application network in place that enables them to quickly and easily connect to these data sources to create new data-driven products and services.”
The disconnected insurance experience
When looking at the factors that contribute towards a disconnected consumer experience:
55 per cent of UK consumers said that their insurance companies did not provide a personalised service, despite the amount of data they currently capture. Other European countries fared much better, with only 27 per cent of German and 29 per cent of consumers in Belgium and the Netherlands saying that their insurance providers did not offer a personalised service.
More than half (51 per cent) of UK consumers expressed frustrations with having to re-input or re-submit personal information that had previously been provided to their insurance providers.
The speed at which insurance providers respond to online and offline requests for information is another area of frustration for many consumers. The research reveals that more than a quarter (28 per cent) of UK consumers who have submitted a query or request for information found it could not be answered, or took longer than anticipated, because staff did not have access to all the information they needed.
The final frustration explored was the number of consumers who were unable to interact with their insurance provider in a way that suits them. Just over a fifth (21 per cent) of UK consumers have given up on an activity or request because sharing information with their insurance provider was too difficult. This was better than what was experienced by German consumers (33 per cent), but slightly worse than what was encountered by consumers in Belgium and the Netherlands (19 per cent).
“Today’s consumers expect a fully connected and highly personalised experience, but it is clear insurance providers are falling short. As the figures show, disconnected data and systems can have a negative impact on customer loyalty. The challenge for insurance providers is to bring multiple technologies and data together to create a cohesive and distinctive customer experience. Even though some providers have made strides in providing a more integrated experience across products, there’s still room for all providers to differentiate in this increasingly commoditised market. It will be the providers that successfully connect their applications, data and devices through APIs that will innovate faster and improve customer satisfaction,” added Jerome Bugnet.
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