Consumers are willing to share additional personal data with insurers to secure benefits including more personalized services, cheaper premiums and an enhanced claims process
There’s an opportunity for insurers to gain a competitive advantage by focusing on key purchasing factors such as meeting individual needs, affordability, trust and ease of doing business
HONG KONG, August 3, 2023 - An overwhelming majority of consumers polled in Capco’s 2023 survey of insurance policyholders in Hong Kong and the wider Greater Bay Area (GBA) are willing to share additional personal data with insurers – highlighting a clear opportunity for the industry to deliver more attractive tailored offerings, identify cross-selling opportunities, and enhance levels of brand loyalty.
Across all respondents, 94% (Hong Kong) and 90% (wider GBA) said they would be willing to share additional personal data. Securing more personalized services was the leading motivating factor cited (55% of surveyed policyholders in Hong Kong and 60% in the wider GBA), followed by enhanced claims processes in Hong Kong (53%) and enhanced authentication processes in the wider GBA (54%). Cheaper premiums were cited by 47% of policyholders in Hong Kong and 34% in the wider GBA.
While consumers continue to prefer to purchase key policies such as life insurance through agents, many also now expect to interact with insurers via modern channels such as apps, messaging platforms and video chat – especially in the wider GBA – underlining the importance of seamless omnichannel customer experiences in a dynamic, increasingly digitalized marketplace.
The survey, which polled 1,000 Hong Kong and 1,000 wider GBA policyholders between the ages of 18 and 65 years, captures consumer attitudes to insurance and insurers, including preferred purchasing channels, decision drivers, and their views on the claims process and insurance apps, as well as their clear appetite for personalization and willingness to share personal data.
It also highlights key innovation trends and opportunities for insurers to increase engagement, and recommended paths forward for insurers as they look to secure a competitive advantage, including enhancing apps, strengthening data management to enable a single view of the customer, and deploying personalization strategies and modular products to help customers and advisors to design personalized solutions.
Lance Levy, CEO of Capco, said: “Hong Kong remains a pivotal market for insurers, in terms of both serving the domestic Hong Kong population and offering a gateway to the wider Greater Bay Area and the mainland more broadly. The pandemic reinforced the need for insurance, whilst acting as a catalyst for digital transformation within the industry. Customers’ needs and expectations continue to evolve, demanding greater personalization, convenience, transparency and choice, shaped by their digital experiences in other industries.”
Darren Pigg, Partner and APAC Insurance Lead, said: “Insurers need to respond to customers’ demands for greater personalization, choice and convenience if they are to remain relevant and win trust. They must continue their drive to be more customer centric by designing flexible omnichannel journeys informed by analytics driven from internal and external data sets to interact with customers according to their preferences and to provide them with offerings that truly meet their evolving needs.”
Other key findings in Capco’s Hong Kong and Greater Bay Area report include:
When purchasing insurance, the two most important decision factors are affordable premiums (39% Hong Kong; 36% wider GBA) and the ability to meet their needs (37% Hong Kong; 39% wider GBA).
There is a strong preference among surveyed policyholders in both Hong Kong and the wider GBA for more personalized products, especially in the case of health, life and long-term savings.
Policyholders value the convenience offered by insurance apps and want to use them for an expanding range of tasks.
A range of additional features, such as mental health coaching, are of interest to app users in Hong Kong and particularly the wider GBA.
When it comes to data sharing, a fitness or health test is the preferred option (Hong Kong 51%; wider GBA 52%).
The vast majority of respondents are satisfied with their claims experience (Hong Kong 88%; wider GBA 92%).
Capco’s 2023 Hong Kong & Greater Bay Area insurance survey can be downloaded below. Further national market reports will be published in the coming weeks. Capco’s latest global insurance survey was conducted during February and March 2023 and collected responses from 13,750 policyholders aged 18 to 65 years across Hong Kong, Greater Bay Area (ex Hong Kong), Singapore, Thailand, Malaysia, the UK, Switzerland, Germany, Belgium, Poland, Italy, the US, Canada, and Brazil.
Janet Lin, Cognito
Capco, a Wipro company, is a global technology and management consultancy specializing in driving digital transformation in the financial services industry. With a growing client portfolio comprising of over 100 global organizations, Capco operates at the intersection of business and technology by combining innovative thinking with unrivalled industry knowledge to fast-track digital initiatives for banking and payments, capital markets, wealth and asset management, insurance, and the energy sector. Capco’s cutting-edge ingenuity is brought to life through its award-winning Be Yourself At Work culture and diverse talent. To learn more, visit www.capco.com or follow us on LinkedIn, Instagram, Facebook, and YouTube.
Our 2023 Hong Kong & Greater Bay Area Insurance Survey captures responses from 2,000 policy holders. These survey findings inform insights and recommendations from Capco's local insurance experts on the key roles of data and personalisation.DOWNLOAD THE FULL REPORT