Insurance customers not ready for ‘Big Brother’ style marketing

Insurers should be careful how they use the data they collect from their analytics, Big Data and social technology projects, according to Celent.

The insurance market analyst claimed most customers are not ready to be marketed to with messages which reveal the level of data new insurance technology projects are providing companies. 

The report, Customers Don’t Want to Buy Insurance from Big Brother, claimed some, especially the younger generation, were actually fans of this type of messaging. It warned, however, that the majority of people surveyed, in the UK and the US, are not ready for this approach from a financial institution.

Celent added, however, that although most customers were likely to react badly to this type of marketing at present, this is likely to change in the years to come.

“Most people will hate receiving messages that imply the organisation has gone a step further in understanding their data. Either we’re too early, or this must be an opt-in process,” said Craig Beattie, senior analyst with Celent’s insurance group and author of the report. “What surprised us, though, was that each message had people who would love to receive it. Given that this was typically in the younger age groups, we’re going to be seeing this kind of interaction in the future.”