#TECHVISION2020 Digital discomfort Over the years, insurance businesses have built robust data gathering More than 80 percent of consumers are willing to share personal data understand their customers better and doing more to design more and analytics practices for pooling risk. But a shift towards assessing risk in exchange for benefits such as more competitive prices; faster, easier compelling customer experiences. This is a potential game-changer and determining pricing on an individualized level through models like services; priority service; and more relevant advice for their personal in an industry that has traditionally had little ongoing contact with UBI may bring a set of unintended consequences. Commercial and circumstance, according to Accenture’s 2019 Global Financial Services customers outside billing cycles, policy renewals and claims. 15 personal lines customers alike may wonder whether the algorithms Consumer Study. However, 38 percent would leave their insurer over that drive customization really work in their interests—will carriers, concerns about data security. For instance, TrueMotion, the provider of smartphone data platforms for example, scoop up low-risk customers and penalize others with to auto insurers, found in an 18-month trial for a distracted-driving app, unfair or unaffordable pricing? As such, a new trend is emerging. While commercial and personal that users opened the app 12.1 times per week and spent an average lines insurance customers welcome customized experiences, 13.2 minutes with the app. By contrast, consumers think about their Discomfort with the results of customization is only part of the issue. they don’t want these experiences to be overly determined for them insurer for only 9 minutes in the course of a year. Gamification and Consumers also worry about the data gathering practices and black- without their knowledge. They are asking insurance enterprises to be rewards were the key to the app’s success—end-users felt it was box techniques companies use to personalize their offerings. Two- their partners: working with them to create experiences, helping them beneficial to them and that it helped them to become more aware 16 thirds of consumers surveyed for this year’s Tech Vision report they reach their goals and giving them the option to change the experience of their driving behavior. are as concerned about the commercial use of their personal data when their needs or circumstances change. and online identity for personalization purposes as they are about security threats and hackers. More than creating a personalized touchpoint for their customer, insurers can use technology to begin building long-term partnerships and fostering loyalty. But it means sharing control and power in the relationship, giving customers agency. It starts with carriers learning to Technology Vision for Insurance 2020 | We, the Post-Digital People 15