Adapting to Post-Consumer Duty Challenges: NTT DATA’s New Findings

Recently, Insurance Business Magazine published an article discussing the impact of the Consumer Duty Act on insurance interactions, featuring insights from NTT DATA UK & Ireland’s recent research. This publication highlights key findings from the study and sheds light on the current state of the insurance industry. 

Consumer Duty Act: Findings from NTT DATA Research 

The research conducted by NTT DATA UK&I reveals that since the introduction of the Consumer Duty Act in July 2023, 82% of consumers have reported no significant change in their interactions with insurance providers. This data is crucial as insurers prepare for the upcoming annual board reporting deadline, indicating a need for industry-wide reflection and potential transformation. 

Key Findings from the Study: 

• Limited Impact on Interactions: Despite the new regulations, 82% of policyholders perceive no noticeable change in their engagement with insurers. 

• Customer Dissatisfaction: 46% of consumers feel neutral or dissatisfied with their current policies. One contributing factor is the infrequency of communication, with 47% of insurers only reaching out once a year. 

• Personalization Gaps: Communications are seen as somewhat tailored by 45% of consumers, while 40% still view them as generic. 

• AI Concerns: 17% of respondents are apprehensive about losing personal interactions due to AI, and 18% doubt AI’s capability to handle complex claims effectively. 

• Product Uptake Issues: Only 28% of consumers have recently adopted new insurance products, suggesting potential barriers to product engagement and adoption. 

Industry at a Crossroads: Navigating Consumer Duty 

The findings indicate that the insurance industry is at a pivotal juncture, where balancing technological advancements with a genuine understanding of customer needs is essential. The Consumer Duty Act presents both a challenge and an opportunity for insurers to redefine their relationship with consumers, emphasizing the importance of data-driven personalization and AI to rebuild trust. 

Read the Full Article 

For a deeper understanding of the challenges and opportunities the Consumer Duty Act presents to the insurance sector, and to explore detailed perspectives on how the industry can evolve, read the full article in Insurance Business Magazine.