LONDON & READING, UK – 4th June 2015 – Millennials in the UK are prepared to give up their own blood, urine, and personal data if it means lowering their insurance premiums, according to research conducted by Millennial generation researchers Decode
. The study was conducted on behalf of strategic business applications company Pegasystems Inc
. (NASDAQ: PEGA), alongside leading global provider of consulting, technology, and outsourcing services Capgemini
, and was advised on by one of the UK’s top generational sociologists Dr Paul Redmond
The research surveyed 1,000 UK residents between the ages of 18 and 34 on their attitudes to insurance and has raised questions about how important it is for insurers to understand the behaviour of their customers, by revealing that some Millennials are far from squeamish when it comes to finding ways of securing a discount. Indeed, the research found that more than one quarter (26 per cent) of respondents planning to buy insurance strongly agreed they would be willing to regularly supply an insurer with a urine or blood sample to prove their good health if it meant claiming a discount. Moreover, almost one quarter (22 per cent) of older Millennials strongly indicated they were willing to go a step further by having a device such as a chip or tracker inserted into their bodies to monitor their behaviour if it meant spending less on insurance.
The study also found that UK Millennials place little importance on the confidentiality of their own personal information if it means getting something they want. Almost one third (29 per cent) of respondents strongly agreed they would be willing to have monitoring devices placed in their homes and cars to monitor their actions, while one quarter (25 per cent) of respondents strongly indicated they would be willing to use a wearable device like the Apple Watch to provide personal information if it meant cutting costs. This is further emphasised by the fact that more than one third (35 per cent) of all Millennials strongly agreed they would be open to giving up even more personal data if it meant securing a discounted insurance premium.
Commenting on the findings, Dr Paul Redmond said: “These findings reflect much of what we already know about Millennials and their preferences. For example, like the Baby Boomers that came before them, they are confident, independent-minded, and almost endlessly willing to experiment to get what they want. However, it’s also important to remember that, unlike those who preceded them, the Millennial generation is the first to grow up without any assumption of anonymity. This means it’s becoming increasingly important for modern organisations to understand the extent to which Millennials are willing to give up so much of themselves in exchange for something they value.”
Tony Tarquini, Director, Industry Principal, Insurance at Pegasystems said: “The issue this study highlights is whether insurers, or any organisation, for that matter, have a good enough understanding of Millennials to interact with them effectively. Price has always been a key consideration for any generation of customer, but this research illustrates that Millennials, more than any other generation, are willing to give up very intimate information about themselves for the right incentive. This places insurers in unchartered territory, and underscores the fact that if they are to meet the needs of the Millennial generation, they will need the right technology and the right thinking to ensure they know and understand the preferences of this new breed of customer.”
Nigel Walsh, Vice President & Head of UK Insurance at Capgemini said: “This research demonstrates that existing experiments in telematics and other tracking technologies are justified and could be the pivot point for the future of the insurance industry. Whereas previous generations might have given up their own data for free, this new customer has a clear understanding of the value of their personal information and what they can expect in return for sharing it. In the new era of wearable technology, it will have a prominent role to play in the ways in which insurers interact, engage, and sell to their customers in the years to come.”
Tarquini concluded: “Data analytics and technology represent a new frontier for insurance firms if they are to both meet the expectations of Millennials, and also demonstrate that they know and understand them well enough to be able to meet their needs. By using these tools to gather information, insurers will be able to anticipate future customer behaviours and actions, reduce premiums, and engage with this new generation more effectively than ever before.”