08 December 2017

EIOPA Consumer Trends: Digital technologies are changing the way consumers interact and engage

The EIOPA published Consumer Trends Report, which highlights the progressive presence of digital technologies across all stages of the insurance value chain, with biggest changes being observed in distribution channels.

As a result of new technologies and the digitalisation of data, new InsurTech players are emerging on the market. Many established insurance companies are upgrading their digital capabilities through the set-up of in-house and external innovation labs, partnering with large technology companies and InsurTech start-ups, including peer-to-peer insurers. Innovative and increasingly personalised insurance products and services are being offered to consumers, for instance by using telematics devices in health, motor and household insurance. While Big Data raise concerns regarding the possible exclusion of consumers with a high risk profile, some examples of how it can help increase financial inclusion have also been identified.  

In addition, new types of insurance products continue to be introduced in the life insurance sector. Here different kinds and levels of guaranteed returns have emerged, where the economic value of these embedded guarantees can be significantly lower compared to traditional with-profit products.  

Developments in the European pensions sector indicate the increase in the number of active members both in personal and occupational pensions sectors and the emergence of life-cycle funds as relatively novel offerings in some national pension markets. The report concludes that the use of digital technologies such as mobile phone applications or robo-advisors in the pensions sector is still moderate. 

The report also points to a significant increase in the reported level of consumer complaints in the insurance sector, particularly in non-life insurance and mainly related to claims-handling. A slight increase in the number of complaints has also been identified in the pensions sector. In this respect future trends need to be carefully monitored in both sectors. 

Press release

Report

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