By: 12 February 2024
Only 24% trust insurance industry with data, research finds

In today’s digital age, where personal data is a commodity, trust is paramount. However, recent research from Thales‘ 2024 Digital Trust Index paints a concerning picture for the insurance industry. Only 24% of consumers surveyed named the insurance sector as one they trust with their personal data, highlighting a significant trust deficit. 

The study, which surveyed over 12,000 global consumers, delved into consumers’ attitudes towards online brands and services. Shockingly, it revealed that 26% of consumers have abandoned a brand in the past year due to privacy concerns, indicating the importance consumers place on safeguarding their personal information. 

Where does the insurance industry stand?

So, where does the insurance industry stand in the hierarchy of trust? According to the Thales index, banking, healthcare, and government services reign supreme as the most trusted sectors when it comes to handling personal data. Insurance sits in fourth place.  

The research underscores the importance of robust data protection measures and stringent regulatory frameworks. 

Danny de Vreeze, vice president of identity and access management at Thales, shed light on the findings: “Consumers place more trust in banking, healthcare and government services when it comes to sharing their personal data – a universal trend we’ve seen across all the markets surveyed. This is perhaps unsurprising when considering how highly regulated these industries are, the types of information they are responsible for handling, and the measures they have put in place to keep consumer data secure.” 

“While businesses across all sectors are bound by international data privacy laws, regulated industries have been at the forefront of implementing comprehensive data security measures,” noted de Vreeze. “However, as digitalisation continues to pervade all sectors, there’s a valuable lesson for non-regulated industries: consumer preferences are evolving, and prioritising data security is non-negotiable.” 

Customer expectations lead the way

The research also uncovered consumers’ expectations regarding privacy rights. An overwhelming 87% of respondents expect some degree of privacy rights from the companies they engage with online. Foremost among these expectations is the right to be informed about data collection practices (55%), closely followed by the right to have personal data erased (53%). 

Arguably, the data is a wake-up call for the insurance industry. With trust in the sector at a meagre 24%, insurers must prioritise data security and transparency to rebuild consumer confidence. 

Image: Canva 
Josie Miller
Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.miller@barkerbrooks.co.uk