Using location data provides many opportunities for insurers. Customers are becoming more receptive to the idea of sharing their data in order to benefit from financial products and services. What does this mean for insurance companies?
Almost six in ten consumers are open to sharing location data and lifestyle information in exchange for decreased pricing in financial products and services, according to research by Accenture. To be of greatest value this data needs to be leveraged across the entire organization.
According to Marty Kurpiel, SVP of technology solutions and IT at Valid, it’s not enough for insurers to just leverage this data through services and pricing — it needs to be shared across sales teams, marketing and more.
How important is location data for the insurance sector?
Kurpiel: Location data, and more specifically “hyper-location” data is critical to the insurance sector. For years various types of policies have taken into account location-based data points such as traffic patterns, crime statistics and historical weather data, just to name a few. Advancements in technology, as well as an ever-increasing stream of hyper-location-based data from connected devices, will continue to shape the future of the insurance industry.
Are consumers willing to share location data?
Kurpiel: The amount of personal data consumers are willing to share has significantly grown over the past few years. In fact, 58 percent of consumers say they are willing to share personal data under the right circumstances. So with that, it’s essential insurance companies communicate the benefits of their access to location data. Consumers want transparency, and if they understand the “why” and “how” behind the data their sharing, they will be more willing to provide companies with that information.
What motivates a consumer to share such data?
Kurpiel: Consumers are motivated to share data when it benefits them. An ALC study found 70 percent of consumers are more inclined to share sensitive information in lieu of special offers or discounts. When consumers are giving something up – like personal data – they want to feel like they are getting something in return.
How can insurers best use this data?
Kurpiel: Today’s consumer expects relevant and meaningful messaging from a new customer acquisition perspective as well as the ongoing customer experience. Self-reported, as well as 3rd party data enhancements, must be part of the complete view of the prospect and customer to do things such as empower acquisition, cross-sell, upsell marketing efforts, as well as enabling agents to better understand their clients.
Why is it important that the data is shared across all departments within the insurance firm?
Kurpiel: There are a lot of different areas of the insurance firm where customer data is essential. When you’re looking at the marketing side of the house, they need to be able to create campaigns that reach the best demographics for their business. Additionally, the appraisers and customer service reps need to truly understand how their audience works in order to best communicate with them.
See article in Digital Journal.