Big data : Keeping pace with customer expectations So , while legacy insurers may be starting to wake up and smell the roses , they must do so quickly in order to ensure customer retention rates stay stable . For as innovation evolves in the insurance space , customer expectations do in tandem .
Marr says : “ Millennial and Gen-Z customers are more likely to prefer usagebased insurance and are comfortable sharing data for a tailored experience . Also , the expectation for seamless , almost instant , digital interactions is on the rise . Customers are embracing insurtechs that offer mobile apps , AI-based virtual assistants , and quicker claims processing .”
As younger consumers get older , these expectations will soon become the norm . Patel notes that “ younger customers demand this kind of experience as standard now . They don ’ t want generic insurance products or inconvenient insurance experiences , and smart insurers are implementing plans to meet those needs .”
Patel offers further use cases that big data could support in the future : “ We are moving into a world where you can get a better price on your health insurance if you exercise better , and you can get that data from a smartwatch . Just imagine how much data Apple could access that would help in insurance .”
“ You can already get a better price on your car insurance if you drive more safely , and your insurer can access that data through a smartphone app . But how about daily or hourly pricing that changes how much you pay based on whether you drive at times or in locations where you are more likely to have an accident ? That ’ s becoming a reality .”
It is clear then , as Marr puts it , that “ big data ’ s potential is limitless , and harnessing it innovatively will be key to staying ahead ”.
The future of big data : Expanded use cases With smart insurance set to define the future of the industry , Marr believes insurtechs “ have just scratched the surface of what big data can achieve ”, a further warning to legacy players currently behind on technological innovation .
He adds : “ In the future , we can expect more interconnected devices feeding real-time data , enabling dynamic pricing models that evolve with user behaviour . Blockchain technology could be integrated with big data for transparent and secure transactions . Insurers could also embrace augmented and virtual reality for loss assessments and customer interactions .” insurtechdigital . com 59