Data analytics, an opportunity for insurers

41% of Spaniards say they would keep their current insurance policies even if the cost of living increases. This is where data analytics comes in to personalize insurance, something that 37% of respondents understand and accept.

This is reflected in the 2022 EMEA Insurance Consumer Insight study by Guidewire in Spain. Where it is highlighted that the use of data in the sector is a trend that is gaining ground among insurers.

“By understanding what is important to their clients, the insurers we support are better equipped to respond quickly to changing market needs, as well as to develop effective and relevant offerings for the future”, says Sebastià Company Mas, Senior Product Marketing Manager for EMEA, Guidewire.

Insurers in Spain

Guidewire’s survey revealed that for 40% of Spaniards, insurance, while necessary, can sometimes be a bit of a nuisance. 22% believe that insurers offer them products adapted to their needs, while another 23% think the opposite: that insurers usually sell products with inflated prices and coverage that they do not need.

Part of this vision of the sector seems to be related to COVID-19. While 48% of Spaniards have a positive view of insurance, which has even been reinforced during the pandemic, another 45% have a negative image.

But this pessimistic view does not hold when it comes to interacting with your insurance agent: 71% of respondents say that when they have had to contact their agent, they have found a professional who knows what they need.

Data analytics, an opportunity for insurers

data analytics

32% believe it makes sense for insurers to seek even more data from their customers as they believe it will improve service. This is not the case for 26% of those surveyed, who even consider the interest of insurers to expand their database and customer information as an intrusion on their privacy.

The survey, however, highlights that 74% of Spaniards would agree to receive proactive notifications about possible risks to their safety and property from their insurer, while only 26% would refuse.

Sustainable and integrated insurance

The Spanish also talked about sustainability. On this, 37% believe that insurers should invest more benefits in supporting environmental projects and 32% think that policies should be designed to promote sustainability.

In line with this interest in being more sustainable is the perception of integrated insurance, which is frequently sold together with products distributed by Amazon, IKEA or Tesla.

In addition, only 9% reject that these companies offer insurance along with their products, while 56% feel comfortable receiving this type of proposal. This would make it possible to secure purchases to avoid their rapid obsolescence or discard them in the event of a breakdown, promoting responsible consumption.