Carriers focusing on telematics and other tools that measure customer behavior in exchange for lower prices may be onto something. A new Accenture report has found that insurance or banking products that price lower in exchange for significant personal information are drawing significant consumer interest. There’s a catch: consumers also want their privacy protected.
The consultancy found that almost six out of 10 consumers would be willing to share location data, lifestyle and other personal information with their insurer or bank if they got lower pricing on products and services in return. However, 75 percent of consumers responding said that they are very cautious about the privacy of their personal data. Underscoring that response, data security breaches were the second-biggest concern for consumers, behind only increasing costs, when asked what would make them leave their bank or insurer.
Accenture’s global survey determined that more than half of consumers would share that data for benefits including more rapid loan approvals, discounts on gym memberships and personalized offers based on current location.
Piercarlo Gera, a senior managing director in Accenture’s Financial Services practice, noted that consumers are more accustomed to sharing their personal data as it relates to their personal finances, despite the privacy concerns. Carriers and banks would do well to take note of both, he added.
“This is a call for banks and insurers to see their customers as people with needs beyond their bank accounts and premiums,” Gera said in prepared remarks.
Accenture found that consumers strongly supported personalized insurance premiums, with 64 percent interested in receiving adjusted car insurance premiums based on safe driving and 52 percent in exchange for life insurance premiums tied to a healthy lifestyle. The majority (79 percent) would provide personal data, including income, location and lifestyle habits, to their insurer if they believe it would help reduce the possibility of injury or loss.
In banking, 81 percent of consumers would be willing to share income, location and lifestyle habit data for rapid loan approval, and 76 percent would do so to receive personalized offers based on their location, such as discounts from a retailer. Half (51 percent) of consumers want their bank to provide updates on how much money they have until their next pay day, and 57 percent want savings tips based on their spending habits, Accenture said.
Global Desire to Share Personal Data Varies
The appetite for sharing significant personal data with financial firms was highest in China, with 67 percent of consumers there willing to share more data for personalized services. By contrast, half of consumers in the U.S. said they were willing to share more data for personalized services. In Europe, where the General Data Protection Regulation took effect in May, consumers were more skeptical. For instance, only 40 percent of consumers in both the U.K. and Germany said they would be willing to share more data with banks and insurers in return for personalized services.
To compile the report—Accenture’s Global Financial Services Consumer Study—the firm surveyed 47,000 respondents across 28 markets: Argentina, Australia, Belgium, Brazil, Canada, Chile, China and Hong Kong (SAR), Colombia, France, Finland, Germany, India, Indonesia, Italy, Japan, Malaysia, Mexico, Peru, Netherlands, Singapore, South Africa, Spain, Sweden, Thailand, United Arab Emirates, the United Kingdom and the United States. Respondents were required to have a bank account and an insurance policy and covered multiple generations and income levels. The survey was conducted online during May and June 2018.