Momentive study: digital innovations in insurance
Insurance is undergoing a digital transformation as consumers' appetite for greater personalization and mobile app experiences grow.
- When it comes to choosing insurance providers, younger consumers place greater importance on flexible pricing and policies, as well as the digital experience.
- Filing claims via mobile app sees demand among younger age cohorts, while phone calls remain the most preferred method of communication.
- The majority of Americans are willing to share driving habits, location, and medical test results with insurers in exchange for lower premiums.
- More than one in four (27%) consumers say they ‘always’ or ‘sometimes’ purchase extended insurance or warranty, driven by electronics and appliances.
Younger consumers place greater importance on flexible pricing and policies, as well as the digital experience
Insurance coverage, price, and customer service are the most important factors for customers when it comes to selecting an insurance provider. Two in three (64%) U.S. adults say coverage is the most important to them, followed by price of deductibles and premiums (59%), and customer service (54%). Some differences arise between generations, with Gen Z and Millennials showing greater preference for deals and discounts, customization of their insurance policies, and the online or mobile app experience.
Filing claims via mobile app sees demand among younger age cohorts, while phone calls remain the most preferred method of communication
How customers want to interact with insurers is also changing: filing insurance claims via mobile app is How customers want to interact with insurers is also changing: filing insurance claims digitally is a leading method of communication with insurers, with 26% of Americans preferring to file claims via desktop or laptop, and 24% via mobile app. Filing claims via phone call, however, remains the overwhelmingly preferred method (55%). Human interaction, although still vital to the claims experience, is a lower priority for younger consumers, while demand for a digital claims experience is increasingly important.
- Nearly half (48%) of Gen Z and Millennials say being able to handle claims online or via mobile app is ‘very important’ to them, compared with only 33% of those aged 58 or older.
- Two in three (67%) of Gen Z and Millennials say speaking to an agent is ‘very important’, compared with 70% of Gen X and 75% of those 58 or older.
The majority of Americans are willing to share driving habits, location, and medical test results with insurers in exchange for lower premiums
In an opening for insurers, Americans express a high degree of willingness to share behavioral data in exchange for lower premiums. Two in three (62%) are willing to share their driving habits, 58% their location, and 54% medical test results. Consumers, however, are largely split on sharing data from wearables and smart home devices (48% willing vs 43% unwilling for wearables, 46% willing vs. 44% unwilling for smart home devices), and are especially hesitant to share their social media data (40% willing vs. 51% unwilling).
More than 1 in 4 consumers say they "always" or "sometimes" purchase extended insurance or warranty, driven by electronics and appliances
Add-on insurance, protection, or warranty plans, usually presented to customers at the time of checkout, are proving popular, especially among younger consumers. One in three (33%) Gen Z and Millennials say they ‘always’ or ‘sometimes’ choose to add such insurance to their online purchases, compared with 28% of Gen X, and 20% of those aged 58 and above. Electronics (37%) and appliances (28%) are the leading category of purchases that see add-on insurance purchases, followed by trip or travel protection (22%) and rental cars (19%).
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