Today, the European Insurance and Occupational Pensions Authority (EIOPA) published its sixth Consumer Trends Report on the major developments in the European insurance and pensions sector. It demonstrates that new digital technologies and the digitization of data continues to occur across all stages of the insurance value chain with the biggest changes in the distribution channels.
Here are some further insights:
- More often, consumers are being offered innovative and increasingly personalized insurance products and services – enabled for instance by using telematics devices in health, motor and household insurance.
- Despite concerns about the use of Big Data regarding the potential exclusion of consumers with a high risk profile, some counter-examples show that Big Data can also be used to increase financial inclusion.
- There has been a significant rise in the reported level of consumer complaints in the insurance and pensions sector in 2016 – mainly related to claims-handling. Therefore both sectors need to be carefully monitored in the future.
Gabriel Bernardino, Chairman of EIOPA, noted: "The major trend continues to be digitalization which creates opportunities to improve customer experience and reduce operational costs of insurance undertakings. At the same time it poses a number of challenges such as financial inclusion and the fair treatment of consumers related to the ethical standards used. Next year, EIOPA will conduct a thematic review on Big Data to analyze these issues."
Source: European Insurance and Occupational Pensions Authority (EIOPA)