Coverd, a technology company specializing in nomadic object coverage, has chosen to focus on the digital transformation taking place in the insurance sector. The French insurtech conducted a survey on a field that is increasingly using technological innovations to facilitate policyholders’ practices. 5 insights come from the surveys the firm conducted and 4 of them are based on the concepts of insurtech, use of data by insurance players or digital transition.
Online forms and chatbots are not widely used in the insurance application process
The first result mentioned in Coverd’s study is the following: 80% of the people surveyed prefer physical or telephone appointments when taking out insurance. While the move to digital seems to be something that cannot be ignored by the traditional insurance players, the French seem to want to keep a human contact when it comes to insurance. Only 16.7% of French people surveyed take out insurance through an online questionnaire and 3.3% of them through a chat. Coverd states:
“The future of insurance shows that current players need to keep the human at the heart of their offer to appeal to consumers and not focus solely on digital to endure.”
An almost similar percentage is found in the second survey: 81.2% of individuals prefer to trust an insurance market leader. With the digital transition that the insurance industry is making, many players have entered the market looking to anchor innovation in the field and offer a service that they feel is easier to tame. Nevertheless, 12.5% of those surveyed trust an insurance start-up compared to 3.1% who trust an international retailer. Coverd analyses this result:
“This figure shows us that there is an evangelism on the part of start-ups in this sector that is not about to go down.”
Insurtech and the use of personal data
The third result questions the French around insurtech: 90.9% of those questioned still don’t know what an insurtech is. According to Coverd, insurtechs are increasingly numerous and are seeking to shake up the market in a sector where digital transformation is beginning, driven by the new consumption patterns of the French. If the concept of innovation is understood by all, the insurtech sector is something totally new for the French who do not yet see themselves in this new definition.
Last but not least, 48.3% of French people are wary of the use of data by insurance players . Moreover, 13.8% of the French people questioned in this study said that they were afraid for their individuality. The intensive collection of data contrasts with the concept of transparency and ethics, with Coverd saying:
“If we think first of all about their practicality and benefits, it is also crucial to think about what this intensive data collection implies for insurers, and the potential abuses that go with it. In possession of this information, insurers must act transparently with their consumers. These figures show that in addition to danger and distrust, policyholders want full transparency about their personal data.”