As UK insurance firms face the first board reporting deadline of the Consumer Duty Act on July 31, 2024, many are struggling to meet the new regulations. NTT DATA UK&I’s research shows that despite 99% of consumers feeling their insurance needs are somewhat addressed, 46% remain dissatisfied.
The study reveals that 47% of insurers only contact their customers annually, which may contribute to low trust and dissatisfaction. Nearly half of consumers question if their insurers truly act in their best interests.
Key issues include:
Personalization: Only 45% of consumers feel insurance communications are tailored to their needs.
Policy Uptake: Just 28% have acquired new policies recently.
AI Concerns: 17% worry about losing personal interaction, and 18% doubt AI’s ability to handle complex claims effectively.
While 42% of consumers are open to sharing more data, 34% are hesitant. The report also highlights that 29% of neurodivergent individuals face more difficulties accessing policy information compared to 18% of non-neurodivergent individuals.
Deborah Bale from NTT DATA UK&I commented, “The Consumer Duty Act offers a chance to reshape insurance by balancing innovation with customer needs. The future of the industry hinges on integrating data-driven personalization and AI effectively to rebuild consumer trust.”
