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BizReport : Research archives : March 24, 2016

Insurers need to tech up to provide the service 21st century customers expect

The insurance industry in the UK is not meeting the demands and expectations of consumers in the 21st century, according to research sponsored by GMC Software.

by Helen Leggatt

Insurers in the UK are not embracing technology to communicate with consumers and manage their affairs. According to a survey of 2,005 British consumers, sponsored by GMC Software, 93% said they expect a wider choice of communication channels and more relevant communications.

GMC found that just 5% of insurers use mobile apps to communicate with customers, yet 19% of consumers believe this is a service insurers should provide. Only around half (53%) of insurers use email to communicate, yet 71% of consumers believe it should be standard.

As well as the lack of communication technology being used by insurers, consumers want more transparency, such as being given insights into how to lower their premiums. Almost two-thirds of survey respondents said they would accept higher premiums now in exchange for more accurate information that would help them lower premiums over time. Again, consumers (56%) believe that insurers should use technology such as health monitors or connected cars to enable them to provide more accurate premiums.

"As we can see, consumers aren't averse to paying a little more now for a better service that benefits both insurer and consumer," said Mike Davies, VP EMEA North at GMC Software. "By matching their customers' expectations and making the most of technology, insurers aren't only helping consumers, they're helping themselves. For instance, using connected devices to provide more accurate premiums means insurers can offer cover at a lower cost and at less risk to themselves. Society's attitude to technology and communications has changed: the industry needs to change with it."

Image via Shutterstock

Tags: insurance, mobile, research, technology, UK

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