Insurance as a second skin: How Technologies drive prevention-focused consumer behavior
Type
applied research project
Start Date
May 2020
Status
ongoing
Description
As of today, the prevalent function of insurance from consumers’ perspective is that of support, financially or otherwise, after a damaging event has occurred. While this ex-post protection fulfils an important role in the societies and the lives of individuals, preventing risk events altogether would often be preferable.
Consumer behavior substantially contributes to the likelihood that a risk event occurs. However, the understanding of when and how preventative consumer behavior can be fostered is lacking. Reasons include the obscurity of involved behavioral and motivational drivers: due to the high dependency of behavior on the individual and environmental context, an accurate prediction of why and how risk-related behavior will unfold has to date been impossible.
With currently available digital means, the consumer risk management paradigm can be shifted. Personal data from sources such as mobile devices, fitness trackers and or surveys abounds, and many consumers are willing to leverage those data to their benefit. Companies can make sense of those data and dynamically interact with consumers to foster risk prevention, resulting in a win-win situation.
The present research focuses on how digital, interactive consumer companions can contribute to a shift toward a prevention-focused risk management paradigm.
Consumer behavior substantially contributes to the likelihood that a risk event occurs. However, the understanding of when and how preventative consumer behavior can be fostered is lacking. Reasons include the obscurity of involved behavioral and motivational drivers: due to the high dependency of behavior on the individual and environmental context, an accurate prediction of why and how risk-related behavior will unfold has to date been impossible.
With currently available digital means, the consumer risk management paradigm can be shifted. Personal data from sources such as mobile devices, fitness trackers and or surveys abounds, and many consumers are willing to leverage those data to their benefit. Companies can make sense of those data and dynamically interact with consumers to foster risk prevention, resulting in a win-win situation.
The present research focuses on how digital, interactive consumer companions can contribute to a shift toward a prevention-focused risk management paradigm.
Leader contributor(s)
Funder
Topic(s)
Research Questions:
- What drivers can change the consumer risk management paradigm from a remedy- to a prevention-orientation?
- What is the role of digital interactive consumer companions in eliciting that change?
- How can digital companions interpret and act upon consumers’ individual and environmental context?
- What drivers can change the consumer risk management paradigm from a remedy- to a prevention-orientation?
- What is the role of digital interactive consumer companions in eliciting that change?
- How can digital companions interpret and act upon consumers’ individual and environmental context?
Method(s)
Consumer interviews and focus groups (analysis of behavioral determinants)
Consumer panels (development of hypotheses regarding drivers of consumer behavior)
Field experiments (validation of experiments
Consumer panels (development of hypotheses regarding drivers of consumer behavior)
Field experiments (validation of experiments
driving consumers’ preventative behavior with a digital companion)
Notes
Societal implications:
The prevention of risk events can have substantial downstream implications for individuals and society alike. While the current remedy-oriented insurance paradigm can even increase the willingness of individuals to take risks, due to their profound understanding of consumers, the insurance industry is in a prime position to develop innovative solutions that reduce the likelihood of risk events in the first place, thus driving consumer and societal well-being
The prevention of risk events can have substantial downstream implications for individuals and society alike. While the current remedy-oriented insurance paradigm can even increase the willingness of individuals to take risks, due to their profound understanding of consumers, the insurance industry is in a prime position to develop innovative solutions that reduce the likelihood of risk events in the first place, thus driving consumer and societal well-being
Range
HSG + other universities + partners
Range (De)
HSG + andere Unis + Partner
Division(s)
Eprints ID
247890