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Industry ‘not aligned’ with consumer demands

Insurers are not meeting consumers’ demands for better protection from a growing list of emerging risks such as cyber and increased natural catastrophes, according to Capgemini’s annual World Insurance Report.

It says fewer than 15% of personal policyholders and one-quarter of commercial clients believe they are adequately insured.

About 37% of customers are willing to share additional data for more personalised risk control and prevention. In Australia, a similar proportion agree.

“Customers are expecting insurers to play a major role by providing consultation and responding to the changing market with agility and speed, and new products that can ensure they are fully protected with uncertainties,” Capgemini Australia Insurance Director Easwaran PR told insuranceNEWS.com.au.

“The key takeaways for insurers are that there are many opportunities to adapt to the changing industry.”

More than 55% of customers are ready to explore new insurance models, but only 26% of insurers are looking into this area, the study shows.

“Individual customers with comprehensive coverage and tech-savvy customers are more willing to share additional data and pay for personalised risk control and prevention services,” Mr PR told insuranceNEWS.com.au.

“Customers are ready to explore new business model offerings such as usage-based and on-demand insurance.”

The World Insurance Report covers the life and non-life sectors, and is based on research in 28 markets including Asia-Pacific economies Australia, China, Hong Kong, India, Japan, Philippines and Singapore.