Policyholders Expect Modern & Integrated Identity Protection

Estimated Reading Time: 6 Minutes

As economic challenges impact nearly every industry, companies of all sizes must reimagine how they operate and grow their business. In this race to stay relevant, the property & casualty insurance industry understands this issue very well.

The P&C insurance industry, in particular, is experiencing slowing growth. Additionally, economic challenges are affecting U.S. consumers and their budgets. At the same time, more insurance companies are entering the market. As a result, policy shopping in the auto and personal property insurance market has become increasingly popular. J.D. Power reports that policy shopping rates hit record levels in Q3 2024. In September and October, the rate was 13.8%. Also, switch rates, which show how many shoppers changed carriers, peaked at 4.6% in August.

Besides these industry issues, cyber threats and scams remain a concern for both businesses and consumers.

As cyberattacks, phishing scams, and identity theft and fraud become everyday concerns, consumers are seeking help. They expect the brands they trust, such as their insurance carriers, to help reduce their risk and actively protect them from compromise.

Some insurers and businesses have taken the initiative by offering standalone or single identity protection solutions. This is a positive step. However, insurers that integrate identity and cyber protection into their core offerings will lead the industry.

At Iris, we know offering your customers key protection tools and resources can help drive traffic to your digital experience and increase customer engagement. One of our major insurance partners saw a 78.7% increase in customer engagement and retention when they added key protection tools to their identity protection program.

Sending alerts is a primary way to drive traffic to your identity and cyber protection experience. In fact, 56% of engaged customers open alert notification emails, which often require the user to log into their identity protection experience. If your identity protection experience is embedded in your customer-facing mobile app, web portal, or other digital environment, you can capture your customers’ attention with other relevant protection tools, resources, or an existing core feature.

Let’s explore consumers’ growing concerns and expectations, and how insurance carriers are uniquely positioned to address these needs.a

Key Takeaways

Consumers no longer view identity and cyber protection as a nice-to-have – it’s an expectation. 66% of consumers say they would pay for comprehensive identity protection.
Policyholder loyalty is at risk. With rising premiums, reduced coverage, and increased policy shopping, insurers must find new ways to retain and engage customers.
Iris’ insurance partners have seen a 78.7% increase in customer engagement and retention when they added key protection tools to their identity protection program.
Sending alerts is a primary way to drive traffic to your identity and cyber protection experience. 56% of engaged customers open alert notification emails. Embedding identity protection experience into your customer-facing digital environment can help you capture your customers’ attention with other relevant protection tools, resources, or an existing core feature.
Integration is essential for engagement, relevance, and retention. Adding identity and personal cyber protection features to insurance apps can increase app usage. This can also create new streams of revenue beyond just claims. 80% of people say they would use identity protection features if they were integrated into a mobile app they already use.
Insurers are uniquely positioned to lead the pack. As trusted risk managers, carriers who offer proactive, value-added solutions like those from Iris Powered by Generali can differentiate and strengthen policyholder relationships.

The Insurance Industry is Changing — And so are Policyholders' Expectations

The insurance industry is navigating a rapidly evolving and challenging landscape. Natural disasters, inflation, and tariffs have all affected the industry’s profits. Rising claims – especially in property and casualty insurance – have also played a major role. In response, some insurers are:

Pulling back from certain markets
Raising premiums
Reducing coverage availability

That’s why it’s more important than ever for insurers to rethink how they protect their policyholders. By adding relevant digital protection, insurers can rebuild and reinforce their value. This also helps them stand out from competitors who offer similar protection – and catch the attention of prospective policyholders.

The Cybersecurity Expectation Gap

Iris^® Powered by Generali’s recent ICC survey found that people see real value in cybersecurity and identity protection solutions. Singular protection components are also popular. About 82% of consumers have access to at least one component of identity and cyber protection. Some of the popular solutions include:

Credit monitoring: 48%
Password manager: 45%
Virtual Private Network (VPN): 31%
Anti-phishing/anti-malware: 29%
Scam protection: 28%
Identity monitoring: 25%

In-blog graphicI CC Survey_Singular Protection Solutions are Popular

Reportedly, 18% of consumers say they do not have access to any form of identity and cyber protection.

Yet, 66% of individuals say they would pay for a comprehensive identity protection solution.

Why? Well, we all know that cyber threats are becoming more common and complex. And consumers are becoming more worried.

88% worry about password compromise
85% fear their devices will be hacked
78% are concerned about falling victim to a scam

Despite these rising concerns, only 3 in 10 individuals follow all recommended cybersecurity best practices.

This contradiction between what consumers fear and what they do is an opportunity for insurers. Insurance agents can offer better coverage and support while also becoming more relevant to the policyholder.

Insurance Carriers are Uniquely Positioned to Bridge the Gap

As an insurance professional, you understand that the insurance industry is built on risk management and trust. No other solutions are as perfectly aligned with this mission as identity and personal cyber protection. You’re already securing consumers’ assets. There is no other asset more important or critical than their identity.

Consumers are actively seeking guidance, protection, and peace of mind, and want it from the brands they already trust – like yours. 36% of consumers who want robust identity and cyber protection prefer to buy it from their insurance company.

However, insurance carriers shouldn’t view this as a purely “check the box” approach. Today’s hyper-connected consumer wants protection built into the tools they already use – like their insurance desktop or mobile app.

80% of consumers would use identity protection features if they were integrated into a mobile app they already use.¹

This presents a significant opportunity for insurers to:

Increase insurance mobile app usage with personalized experiences
Drive digital engagement and customer loyalty
Add new, non-claims-based revenue streams
Offer real-time protection alongside identity theft insurance or personal cyber insurance
Help mitigate policyholders’ risk of account takeovers and data breaches

Additionally, offering value-added, embedded identity protection plays a crucial preventative role, positioning your brand as a core component of your policyholders’ digital protection needs.

From Risk Management to Confidence: How Iris Helps Carriers Deliver More

Iris has many blue-chip partners in the insurance industry. We help them offer in-demand and integrated identity protection solutions that help safeguard their policyholders from scams, identity theft, and fraud. Our Identity Protection Platform allows Iris partners to use robust identity protection tools, enabling businesses of all sizes and types to provide a comprehensive identity protection experience customized to their business model and objectives.

Adding full-circle identity protection solutions to your insurance portfolio can help your company:

Boost revenue that increases profitability
Add value without adding friction
Strengthen the customer experience and customer satisfaction
Differentiate in a highly competitive and hyper-connected market

The reality is that cyber threats aren’t going away – and neither should the trust consumers place in their insurance carrier. Insurance providers who act now to close the cybersecurity gap will stand out from the competition. They will be the ones to create a new way to protect policyholders.

Let Iris help you build the perfect identity and cyber protection experience your policyholders will use, value, and pay for.

Read our case study to learn how one of Iris’ major insurance partners achieved 2% higher retention of policyholders with identity protection.