CCR2 Risk, Data, and Fraud Prevention
Listening to millennials’ voices in the era of digital insurance
A new generation of citizens is growing in importance, but how can industry listen to their needs and to their opinions?
Dr Mahmood Hussain Shah School of Strategy and Leadership, Coventry University
Insurance companies often struggle with having a positive reputation among customers across the world. This has been linked to customers feeling distant from financial corporations. These companies are usually highly competitive and aim towards building trust and retention. Hence, getting customer feedback is one
of the main building blocks to reaching these goals. Customer trust and privacy concerns are major aspects for ensuring their satisfaction and engagement. However, getting feedback on service
performance in the insurance industry forms a major concern among insurance companies due to a major shift in the type of customers they have. The new generation known as millennials,
or Generation Y, is becoming an important segment of customers and potentially creating new opportunities and challenges for the insurance industry.
Dr Nisreen Ameen School of Business and Management, Royal Holloway, University of London
According to Statista, there were
approximately 12 million millennials in the UK in 2018, while they make up nearly 40% of the population in the US. They are generally 23 to 38 years
customers and unlike their parents, millennials have typically elected a lifestyle that includes postponing many significant life decisions and they are generally less concerned with issues that formed a major concern for previous generations of consumers. They are now generally characterised
as being more educated in comparison with other generations and they are more tech-savvy. Since many insurance companies act as
direct marketers and extensively use digital technologies, this new type of customers with unique needs and preferences caused new types of encounters for insurance companies.
Dr Ali Tarhini College of Economics & Political Science, Sultan Qaboos University
Millennials’ views on data privacy and security The recent General Data Protection Regulation (GDPR) has added pressure on insurance companies which often deal with huge amounts of complex data obtained from their customers to ensure privacy and security. Hence, getting customer feedback and
processing it in an ethical manner that does not infringe customer privacy can be a major challenge for insurance companies. However, unlike earlier segments of
customers, millennials are able to accept that there is a balance between privacy and personalisation and that the Internet is a public platform. Hence, they are able to compromise parts of their data privacy for the sake of obtaining a more personalised positive experience. Nevertheless, new challenges particularly
associated with millennial customers have arisen.
However, unlike earlier segments of customers, millennials are able to accept that there is a balance between privacy and personalisation and that the Internet is a public platform. Hence, they are able to compromise parts of their data privacy for the sake of obtaining a more personalised positive experience
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www.CCRMagazine.com
New types of challenges As millennials are technologically advanced, their expectations of quality are high. They see the outstanding quality of services as standard practice. Failure to meet their expectations can
have serious consequences for insurance companies, with social media and peer review websites providing a powerful tool to broadcast grievances. According to Wonderflow, more than
80% of insurance companies expect positive customer experience to be the most important area in the insurance industry in the upcoming years.
November 2019
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