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Consumers ‘want targeted product recommendations from insurers’

Most communications are currently limited to transactional matters

UK consumers want to hear from their insurance providers more regularly, a survey suggests.

The poll by Collinson found 63% said they were open to further communication and 73% were interested in receiving targeted product and benefits recommendations.

However, only 46% reported hearing from their insurance provider on a frequent basis, and only 61% received relevant recommendations.

According to Collinson, insurance has traditionally been a low-contact industry and the situation has worsened following the implementation of GDPR in May 2018, when many providers saw their customer lists shrink.

The survey found 36% of consumers are not aware if they have provided the necessary opt in to receive updates from their provider.

Respondents said their exchanges were mostly limited to transactional matters like renewals notices (79%); policy updates (67%); and terms and conditions amendments (37%).

The research suggests consumers are open to receiving more useful information from their insurance providers about products and services, as well as the benefits they currently have access to, but may not be making use of.

Of those who opted out post-GDPR, 35% said they did so without knowing they were missing out on these updates, and half (51%) said they would not have opted out had they known.

However, the survey shows consumers’ openness for communication is conditional on several factors. Consumers expect the content they receive to be personalised and they want updates to provide value to them.

Most are willing to share details like occupation (78%), dependents (69%) and more than half are also open to informing insurance providers about their interests and hobbies (57%).

However, of those who have given their insurer permission to contact them, 41% want clarity that their data won’t be sold onto third parties and 38% want confirmation that data wouldn’t be used to sell other products and services. 

“There is a clear desire from consumers for better targeting and tailored experiences, but insurers need to help their customers feel comfortable handing over the data that is needed to create them,” said Lawrence Watts, head of insurance at Collinson. “Insurance providers need to demonstrate the value of more regular and personalised communication in order to gain their customers’ trust. Those who succeed will be able to develop a relationship with their customers beyond that of a service provider, to that of a trusted partner.”