Emerging technologies have transformed the way we live, work, and shop. Over the past few years, there has been a significant shift towards a digital consumer landscape, where we increasingly rely on the internet and smartphones for everyday tasks from paying bills to buying clothes, booking flights, and purchasing insurance. 

Recent key trends: navigating the digital world 

Anna Angell, Associate Director at Shift Consultancy, confirmed that the move towards digitalisation has been one of the most prominent trends in customer behaviour recently. “As consumers increasingly favour the use of mobile devices for internet access and completing tasks, it is essential that insurers design mobile-friendly, efficient websites and user-friendly apps to ensure a seamless customer experience,” she said.

Ben Wooltorton, Managing Director at Cover-More Europe, pointed out that the time of day can impact the type of technology customers use, so insurers need to make sure their platforms are optimised for both desktop and mobile experiences. He noted that while demographic factors can influence device preferences, age is becoming less of a defining factor in overall customer behaviour. 

“The over-50s, once labelled ‘silver surfers’, are now often early adopters of technology, with extensive experience in online interactions,” he said. “The key when trying to appeal to all is to offer layers of information that support those who need guidance without patronising those who are more tech-savvy.”

Angell explained that digitalisation has made today’s modern customers crave simplicity. “Thanks to the likes of Amazon and Uber, customers are now accustomed to frictionless and often personalised services, and expect similar efficiency from their insurance providers,” she said. “We see time and time again how even minor points of friction and complexity can negatively impact engagement and journey completion.”

Luiza Gusmão, VP of Customer at Cover Genius, agreed, stating: “The insurance industry is going through a transition as people have gone digital, expecting – not just wanting – instant services and responses. People crave more online experiences, with easier access to products and services than ever before.”

Although there has been a push toward digitalisation, Angell highlighted that consumers still desire human contact, particularly when dealing with complex issues. She noted that there are still many consumers – sometimes known as ‘hybrid consumers’ – who begin their insurance journeys online, taking advantage of convenient digital tools, but later seek personalised human interactions. “By understanding when and why consumers desire personal interactions, insurers can optimise their online services and better adapt to the growing digitalisation trend,” she said.

Tech advances revealing new insights into customer behaviour 

Alongside reshaping the consumer landscape, technological advancements have revolutionised how businesses track and analyse customer behaviour, enabling them to fine-tune products to better meet market demands. Amy Brown, Founder and CEO of Authenticx, underscored the power of intentional listening technologies in spotting emerging trends: “By listening to customer conversations at scale, we hear current perceptions and track new or recurring topics in real time using unsupervised topic identification. Rather than waiting weeks or months to see these behaviour trends, we can respond to them proactively. Simply put, the sooner you hear it, the sooner you can act on it,” she said.

We see time and time again how even minor points of friction and complexity can negatively impact engagement and journey completion

Gusmão pointed out that when it comes to buying travel insurance, consumers have a wide range of expectations and needs. She noted that technology has enabled a more tailored approach, allowing insurers to customise products and customer journeys. “This personalisation extends beyond just the initial protection offer,” she said. “After purchase, technology also enables a more seamless claims experience with data-driven insights, artificial intelligence (AI)-powered support, and real-time updates – all tailored to the customer’s unique needs and preferences.”

Building on this, Jonathan Frankham, General Manager, UK and Europe, at World Nomads, discussed how technology and user experience (UX) research can further improve insurers’ understanding of customer behaviour during online purchases. He explained that advanced digital tools help monitor website interaction and identify where customers struggle or abandon the process, enabling them to make platform improvements to create a more seamless experience. He said UX research reveals why customers make purchasing decisions, allowing insurers to enhance the user experience by addressing goals and pain points with targeted design improvements, “making it easier for customers to onboard and complete their transaction”.

Frankham concluded that continuous refinement through A/B testing and feedback is key to optimising the platform, “This iterative is crucial for maintaining a platform that not only attracts customers but also retains them by providing a smooth and efficient purchasing experience.”

The role of data analytics

The experts discussed the role of data analytics, deeming it essential for understanding consumer behaviour but noting that it often lacks the context behind the data collected.

Reflecting on the benefits, Frankham stated: “Data analytics allows us to really get personal with our customers. By systematically analysing customer interactions and purchasing patterns, we gain valuable insights into how customers interact with our product and services. 

“Another benefit of data analytics is the ability to segment our customers based on their behaviours and preferences,” he said, adding that this significantly enhances marketing strategies. 

Finally, he emphasised the importance of continuously monitoring and analysing customer feedback, highlighting how it helps identify issues and implement the necessary changes to boost customer satisfaction: “This ongoing refinement process not only improves the customer experience but also strengthens the overall relationship between us and our customers,” he concluded. 

Angell agreed that data analytics enhances the understanding of customer behaviour, particularly by interpreting big data and uncovering valuable patterns. However, she warned: “There’s an important ‘watch out’.” Angell explained that Shift Consultancy uses behavioural science to understand customer behaviour and noted that, since there’s often a gap between what people say and what they do, analytics should focus on behavioural data rather than attitudinal data.

The insurance industry is going through a transition as people have gone digital, expecting – not just wanting – instant services and responses

“Focusing on behavioural data also offers a much more effective approach to customer segmentation than relying on demographic factors,” she said. “This former approach recognises that behaviour, such as customers’ purchasing habits, product usage, and engagement patterns, is what truly matters.”

However, drawing on the disadvantages, Angell pointed out that while data analytics can reveal what’s happening, it often falls short in explaining why. To understand what drives these patterns, she suggested a deeper understanding is needed. “This is where qualitative behavioural insights (research techniques that blend behaviour and psychology) come into play,” she said. 

Wooltorton said that while core analytics tools “form the backbone” of understanding customer behaviour, additional data is needed to provide context.

Uncovering the ‘why’

Angell revealed some of Shift Consultancy’s innovative strategies for diving deeper into customer behaviour and discovering the ‘why’ behind it. She reiterated the importance of behavioural science and what it’s taught us about how humans struggle to understand and explain their own behaviour. To get around this, she said they use innovative qualitative research techniques that focus on actual behaviour rather than self-reported data, which can be unreliable. 

“We’ve also recently developed a new quantitative approach that uses online experiments to test the impact of different initiatives – be it a new product, communication strategy, web design, or something else – on how consumers think and behave,” she said.

Keeping up with tech advancements and emerging trends

Undoubtedly, one of the hottest topics in tech right now is the huge developments in generative AI. Gusmão stated: “Generative AI has an exciting future and is an area we’re investing in.

“Assessing claims will always be personal and require a human touch,” she continued, “but there is an incredible opportunity to automate aspects of the claims journey – from the receiving and processing of documents to improving chatbots and assisting agents.”

Wooltorton recognised that AI has the potential to assist in delivering specific aspects of customer service and act as a “find and retrieve” tool, steering customers towards relevant information on the web or within policy documents. However, he added: “Given the regulated nature of the insurance industry, it’s important that where AI is used for customer interactions, this is made clear to the customer, ensuring transparency.” 

Frankham noted that the journey with AI is just beginning for the insurance industry. He stressed: “As with anything new and relatively untested, a measured approach is required. Automation and customer decision-making don’t always mix well when left too open-ended. While we, as insurers, are well versed in the complexities of insurance terms, it’s clear that the average consumer may struggle, which can lead to unexpected or less-than-ideal outcomes when trying to automate the process.”

However, looking ahead, Frankham highlighted that interactive chatbots for online claims could revolutionise the process by translating customer inputs into specific claims data, improving both the customer experience and the quality of information received by insurers. Additionally, he said new AI solutions could allow customers to file claims in natural language and even analyse the documents they upload. The challenge is to integrate these new AI capabilities seamlessly with existing systems without causing disruption, he said, concluding that it’s about balancing innovation with the stability and reliability of current services. 

Alongside advancements in AI, Wooltorton discussed the future of automation in claims processing, stating: “There are a lot of opportunities for developments in this area. For instance, linking flight data with travel insurance could enable automatic payouts for delayed flights, eliminating the need for customers to file claims, or linking with weather data to automatically process winter sports ‘snow’ guarantees.”

He also pointed to the progress in mobile medical assistance, such as geolocation services that guide travellers to nearby medical facilities or automatically manage prescriptions when they fall ill abroad. 

Greg Lawson, Head of Travel Insurance at Collinson, cautioned: “There is always a danger that what we see on social media and in industry news reflects the latest eureka ideas and thoughts, but sometimes lacks the practical assessments of reality. However, as long as we keep this in mind, these snippets can be the seed from which the next success story evolves that customers love,” he said. 

Technology enables a more seamless claims experience with data-driven insights, AI-powered support, and real-time updates – all tailored to the customer’s unique needs and preferences

He noted that, in addition to listening to customer and staff feedback, valuable insights can also be gained by attending conferences related to both the travel and insurance industries, representing the company through industry associations, investing in market research, and engaging in informal discussions with colleagues in the sector.

“However,” he continued, “the most underrated but effective source of technology insight is experiencing the product itself and considering how it can be improved to solve your own challenges whilst travelling. One of the major trends in customer behaviour reflects society itself and that is the limited focus and attention in a busy, digitally dominated world where we need to convey important information in a way that sticks with customers, saving them the financial, health and inconvenience impacts of a claim if possible. Technology that finds that balance between conveying information in a way that adds value rather than slows the sale is key,” he concluded. 

A look ahead

Envisioning the future, Brown forecast potential trends on the horizon: “There will be more nuanced, deeper insights that go beyond analysing for positive or negative sentiment as future trends consider the customer as a whole human,” she said. “As technology grows more advanced to read and ingest customer needs and wants, the more it will understand the friction and satisfaction customers face at a granular level.” 

As technology reshapes consumer expectations, insurers must prioritise user-friendly digital experiences alongside personalisation and meaningful human interactions. Striking this balance will be central to fostering customer loyalty and driving success.