Australian insurers and their peers overseas are not doing enough to retain their customers, who want more personalised offerings such as usage-based products, according to the annual World Insurance Report from Capgemini.

Released today, the report from the Paris-based global consulting group says insurers must evolve quickly from their one-size-fits-all approach to provide tailor-made products that are unique to policyholders’ specific needs and preferences.

More than half of the 8000 customers polled in 32 markets including Australia say they want usage-based insurance, but only 50% of insurers are currently providing it.

About 36% of consumers say they will consider buying insurance from a “Big Tech” player such as Google or Facebook, up from 17% in 2016.

“Although traditional insurers understand the importance of getting in front of consumers at the right moment, they are not acting on it,” the report says. “They sometimes lack the right tools and techniques to predict when to push appropriate products, reducing their ability to act at the right time.

“Simply put, insurers need to offer the right products, at the right time and via the right channels. Also as customer preferences are evolving faster than ever, continuous assessment through real-time data management is highly needed so that customer experiences evolve at par with consumers’ needs and desires.”

In Australia, recent natural disasters and the virus pandemic have further fuelled consumer appetite for changes in the way insurers communicate with them, Capgemini says.

“We’ve seen a shift over the past six months in regard to how customers are looking to engage insurance providers,” Director of Insurance Industry Practice Easwaran PR told insuranceNEWS.com.au today.

“The Australian bushfires saw an increase in customers looking for hyper-personalised, accessible insurance in regard to claims and minimisation measures, which providers continue to struggle with.

“What we see today is customers looking at various channels like online reviews to help inform and influence their purchase decision.

He says the Hayne royal commission into financial sector misconduct has also been a factor behind the change in consumer expectations. They now want a high level of digital interaction, along with personalised service and simplified products.

The World Insurance Report this year is based on survey responses from consumers and insurance executives in 32 markets, including the US, UK, China, Japan and several European economies.