Consumers open to robo-advice
23 May 2017
Consumers’ embrace of robot-driven advice will herald a shift in the way insurance is sold, according to consultant Accenture’s latest industry report.
It says insurers must adapt and plan for a distribution model that meets customer expectations, or they may end up as fringe players.
“Incumbents should be thinking what their future business is based on,” Accenture’s MD Insurance Strategy Practice Asia-Pacific Ravi Malhotra told insuranceNEWS.com.au.
“What I can tell you is it will not be the same as it is today. Australian insurers recognise these changes. The question still remains… are they going to move quickly enough?
“And it remains to be seen how the industry responds to the change in customer expectations.”
About 64% of Australians want to interact with machines over humans when it comes to obtaining advice about insurance policies, data from the Accenture Financial Services Global Distribution & Marketing Consumer Survey shows.
Almost one-quarter are willing to buy cover from the likes of Amazon, Google and other online service providers, and 32% would turn to a supermarket or retailer for insurance.
Worldwide, 74% are willing to receive computer-generated advice about insurance needs, 29% would consider online service providers and 30% would use retailers. About 38% would consider peer-to-peer motor insurance and 32% are receptive to peer-to-peer cover.
“If you look at the trends, you would expect increased receptivity,” Mr Malhotra said.
“You would expect the technology to get better and people to get more comfortable and more willing.”
The survey interviewed 32,175 insurance customers in 18 markets.