Collinson-commissioned research reveals that UK insurers are missing on improving customer engagement, with half (49%) of UK home insurance policyholders unaware if they are covered for identity theft protection.
Research findings highlight a need for insurers to raise awareness around their policy, by capitalising on consumers’ identity theft protection demand.
Despite the surge in cybercrime and a staggering 3.35 billion data records compromised worldwide in the first half of 2018 alone, the research, conducted amongst 1,045 UK home insurance policyholders, found that half (49%) did not know if they were protected against the growing threat of identity theft. At the same time, a further 25% stated that ID protection was not offered.
These findings highlight two key opportunities for insurers. Firstly, if they do already offer it to their customers, they need to communicate it better and build a better relationship with them and increase engagement, by showing that they understand their needs. Secondly, with over 2 in 3 (70%) of policyholders stating that they are concerned about being a victim of identity theft and 91% finding ID protection beneficial, it is evident that those insures who don’t offer identity theft protection with their home insurance policies, must start considering it.
Home insurance policies cover theft of personal belongings, such as mobile phones or laptops, inside or outside of the customer’s home and the loss of personal or financial items, such as passports, bank cards and driving licences. Having these items stolen presents a longer-term threat to customers’ identities, however, there is a plethora of personal information that is stored online, such as password details and card numbers, that leave us exposed to other significant risks. Policyholders are fully aware of this threat, with 79% considering identity theft to be a useful addition to home contents insurance cover.
Steven Cunnington, Senior Product Innovation Manager at Collinson, said: “In today’s world, people conduct a great part of their ordinary daily activities on the web and with the rise of cybercrime, insurers have a responsibility to protect their customers identity online. If they do offer it as part, they must clearly communicate what’s included during the purchase of a home insurance policy, to ensure customers understand whether identity risk is included, or if not, what cover options are available. The findings clearly show that policyholders want identity theft protection, presenting insurers with a fine opportunity to respond to that demand. It is their opportunity to show their customers that they truly value them”.
Other key findings demonstrate policyholders’ willingness to pay to cover themselves against identity crime. According to the research, 64% would like the identity protection product to be offered as standard, rather than as an add on, however, over half (55%) would be happy to pay between £2 and £5+ extra for it.
Steven, added: “This is a price point at which both consumers and insurers can benefit. Crucially, the advantages to insurers of recognising the demand for identity theft protection extend far beyond premium income. By tapping into these emotional drivers through the provision of value-added benefits, our findings strongly suggest that insurers can deepen and improve customer engagement and ultimately, lifetime value.”
Collinson’s identity assistance product, ID Sentry, delivers comprehensive identity protection, limiting risk and keeping personal and financial profiles safe, anywhere in the world and across all devices. ID Sentry monitors the dark web, whilst software helps to protect against phishing and key logging attacks, two of the fastest growing threats following a data breach.
When their identity is at risk of being compromised, the member portal provides alerts to users, which enables them to take immediate action to prevent fraudulent activity.
For further information please visit https://www.collinsongroup.com/en/insurance-and-protection/identity-assistance