Personalization in Insurance - Thematic Research

Personalization in Insurance - Thematic Research

Summary

In recent years, the insurance market has undergone a significant transformation driven by a combination of macroeconomic shifts and rapid technological progress. Against a backdrop of global uncertainties such as geopolitical tensions and economic challenges, insurers have faced a landscape characterized by both obstacles and opportunities. Notably, personalization has emerged as a key focus area, with insurers increasingly harnessing the power of data analytics, artificial intelligence, and machine learning to tailor their offerings to the unique needs of individual customers. This emphasis on customization has not only led to higher levels of customer satisfaction but has also resulted in improved risk assessment and pricing accuracy. Additionally, the integration of Internet of Things devices and wearables has become more prevalent, providing insurers with real-time insights into policyholders' behaviors and enabling them to implement proactive risk mitigation strategies.

Over the last few years, the insurance industry has witnessed significant change, largely propelled by advancements in technology and changing consumer preferences. One of the most notable trends has been the increasing emphasis on personalization across all segments of insurance. This trend has been facilitated by the widespread adoption of innovative tools such as telematics, wearables, and artificial intelligence. These technological advancements have not only reshaped how insurers interact with customers but have also transformed the entire insurance value chain, driving greater efficiency and competitiveness in the market.

Scope

• GlobalData’s 2023 UK Insurance Consumer Survey indicates that the cost of premiums is a primary concern for 34.2% of consumers.
• There is varying interest in usage-based insurance policies based on potential premium savings, with 16.8% interested if it saved them 10%.
• The primary motivation for homeowners to consider sharing data from smart home devices with a home insurance company is financial savings, with 70.4% of respondents selecting this option as per GlobalData’s 2023 UK Insurance Consumer Survey.
• According to GlobalData surveying, SMEs rank improved safety measures as the most important feature of usage-based insurance.

Reasons to Buy

• Identify leaders in the personalization in insurance theme.
• Determine how leading players use technologies to enhance personalization.
• Recognize how incumbents are collaborating with insurtechs to improve their own product offering and customer experience.
• Evaluate the strength of investment into the personalization in insurance theme and key related technologies.