Nearly half of Canadians willing to share data for perks

It’s been said that data is the new oil, providing many industries — including the insurance space — with the opportunity to improve their operations and provide products more efficiently. That includes consumers’ personal data, though experts have raised questions about whether such information will be used and protected properly.

Consumers appear to be cautiously optimistic. In a survey of 47,000 consumers across 28 countries, which included 2,000 Canadians, Accenture has found that more than half would share significant information about themselves with banks and insurers. In exchange, those respondents expect benefits including discounted gym memberships and personalized offers based on their current location.

Focusing on Canadian respondents, Accenture’s global Financial Services Consumer Study found that nearly half would be willing to share personal information, such as location data and lifestyle information, in exchange for lower pricing on products and services.

Aside from such deals, consumers in Canada expected financial institutions to guarantee the security of their information. Nearly three quarters of respondents (72%) said they are very cautious about the privacy of their personal data. Among all those polled, data security breaches were the second-biggest factor that would compel them to leave their bank or insurer, behind only increasing costs.

“Canadian consumers are willing to sharing their personal data in instances where it makes their lives easier but remain cautious of exactly how their information is being used,” said Robert Vokes, managing director of financial services at Accenture in Canada.

Globally, 52% of consumers said they would be interested in receiving adjusted life insurance premiums based on a healthy lifestyle. Additionally, 79% said they would provide their insurer with personal data — including information on income, location, and lifestyle habits — if they believe it would help reduce the possibility of injury or loss.

“[B]anks and insurers need to deliver hyper-relevant and highly convenient experience in order to remain relevant, retain trust and win customer loyalty in a digital economy,” Vokes said.

The study also classified consumers into four financial services personas:

• Pioneers – tech-savvy risk-takers with an appetite for innovation, they are most willing to explore new channels;
• Pragmatists – ubiquitous, trusting, and channel-agnostic individuals, they have a higher-than-average trust that institutions will protect their data;
• Skeptics – tech-wary, dissatisfied, and alienated, they show low interest in integrated propositions around core needs; and
• Traditionalists – active tech-avoiders who value the human touch and are more likely to feel let down by providers

The Canadian consumer population was most predominantly composed of Traditionalists (40%), followed by Pragmatists (26%) and Skeptics (23%), with the remaining 11% being Pioneers.