How protecting privacy can drive your competitive advantage
As the insurance industry and customer expectations continue to evolve, building and maintaining trust and transparency is quickly becoming critical to creating a competitive advantage. Insurance is a promise to indemnify later – a promise built a long history of trust.
In a world fueled by data, insurers are in a unique position to deliver meaningful value to their customers with access to their past and present behaviours. Sensors used to monitor driving behaviours and wearable technology that tracks health information are a case in point. The challenge lies in making use of available data quickly while also keeping it private and secure. But if your customers don’t trust you to protect their sensitive data and use it responsibly, you’ll get nowhere in your efforts to harness the value of that information to offer customers a better experience.
25% of consumers think most companies handle their sensitive personal data responsibly.
Customers need to be confident that the vast amount of personal data submitted to their service provider is safe and that the digital services on which they increasingly depend on are reliable. Trust brings a sense of confidence and belief in an organization, as seen in the 88% of consumers who say the level of trust they have in a company determines the amount of personal information they’re willing to share. Transparency in how the information is gathered, used and protected is critical. Policyholders are generally willing to share data as long as they see clear benefit in doing so.
With mandatory privacy breach legislation in place at the federal level, companies subject to Canada’s privacy law, the Personal Information Protection and Electronic Documents Act, will be required to record and report breaches of security safeguards. While compliance is often seen as drawing attention away from innovation, it’s also a starting point for driving change.
Organizations that set customer trust as a priority will be able to capture more data in a way that will not only help them get to know their customers better but also build stronger relationships and deliver better experiences.
Pamela Snively, Chief Data and Trust Officer at TELUS, discusses the interplay between trust, privacy and consumer data in PwC’s Shift podcast.
Getting customer experience wrong is a costly business. A good customer experience leads to customers who will pay a premium, be more loyal and share their experiences with friends. In fact, 63% of consumers say they’d share more information with a company that offers a great experience.
With the right degree of trust, organizations gain competitive advantage, retain their license to operate even in times of crisis and can have a clearer view of how their business and markets are likely to evolve in the future.
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