Almost half of insurance customers around the world are happy for insurers to use data from social media companies and health monitoring applications in return for cheaper premiums.
That is according to new research by MuleSoft, which finds that young people are particularly open to the idea, with nearly two-thirds of 18-34-year-olds willing to share data this way.
Geographically, customers in Singapore and the US were happiest for insurers to use social media and internet of things (IoT) data, while those in the UK were least open to the concept.
Mulesoft EMEA client architect, Jerome Bugnet, said the insurance industry should work with regulators to give customers the option of sharing more data in return for personalised premiums.
However, he added: "Insurers are already struggling to deliver a connected experience before even considering how they bring all these new data sources into the equation.
"Those that are unable to overcome this challenge risk damaging customer loyalty and falling behind the more innovative insurance providers."
The research involved a survey of more than 8,000 customers, finding that 58% think insurers provide a "disconnected experience", with 56% open to changing providers as a result.
It was also found that 30% have given up on interacting with an insurance company because the information sharing process was too difficult.
Almost half of customers believe that applying for or renewing a policy should take no longer than an hour, with at least a quarter having had to re-submit information when making an application or claim.
Some 45% would like to use messaging services like WhatsApp and Facebook Messenger when engaging with an insurer, with 22% having used a chatbot in the last 12 months.
"If they want to remain relevant, insurers need to engage on their customers' terms, using modern channels and technologies such as messaging platforms and chatbots," Bugnet continued.
"Insurers should therefore build an 'insurance as a platform' environment, where they can collaborate with internal teams, InsurTech companies and other partners."
