Joint research by Bain & Company and Salesforce reveals the majority of insurance consumers are open to having their personal data used by cover providers for a more tailored experience.

The joint “Customer Imperative in Financial Services: Permission to Personalise” report was designed to gauge consumers’ perceptions and priorities. It found insurers have “moved the needle” on customer advocacy as a result of actions taken during the COVID-19 pandemic.

Australia’s insurers have made great strides to earn greater “customer advocacy” – putting customer needs first and working to deliver solution-based assistance through products, the research found.

Sydney-based Bain & Company partner Katrina Cuthell says the preference for digital channels has now extended across all age groups.

“Customers have given the financial services a big tick for their handling of the pandemic and their investment in digital channels. Now is the time to channel this trust into delivering the experiences customers expect; seamless, personalised and on the channel that works best for them.”

The survey of 5000 consumers and 300 financial executives found insurers can now accelerate digitisation and improve customer experience by using data in ways that engage customers through smart personalisation.

The majority of customers trust insurers to protect their data, understand how it’s used and are comfortable with the way it is being used.

Salesforce Australia Regional VP Financial Services Sascha Ambrose says personalising customer experiences can translate to more empowered employees, shorter return to investment timeframes and services which put the customer at the centre.

The survey found around half of consumers support their financial institution using personal data they already have, while around 40% support the use of additional publicly available personal data from other entities, such as social media or technology companies.

Insurers have “proven that they can move with purpose and agility,” the report says, and now need to learn how to better serve their customers and improve their return on investment.

It recommends that data-driven intelligence be readily accessible for front-line employees.

“Structure the operating model to enable end-to-end digital execution: multi-disciplinary teams formed of both technology and business staff should have the autonomy and mandate to transform high-priority experiences,” the report says.

It advises redefining and aligning technology and data investment priorities and roadmaps according to customer experience priorities rather than as “top-down buckets of investment” which are then mapped back to the business.