New Study Probes For Insurance Consumer Data

A study that is currently underway is expected to unearth valuable information about consumer insurance usage, a bank official said.

“We expect to achieve a better understanding of how moderate-income consumers use insurance and whether, for example, insurance is another way to access the mainstream financial system,” noted Robin Newberger, business economist for the Federal Reserve Bank of Chicago, which is conducting the study.

In addition, the data may show insurers how to tap this new information for better marketing and underwriting, he explained.

The bank said it is conducting a broad study, including consumers who already own homes, autos or life insurance, as well as those in similar family income brackets but who do not have insurance.

The study's goal is to determine their level of insurance knowledge, the points at which they consider learning more about insurance or purchasing insurance coverage, the kinds of assets they seek to protect, and the ways in which they use the insurance distribution system.

“The study's results can be used by programs and organizations that are already helping moderate-income consumers build assets and wealth,” said Mr. Newberger.

Urban Insurance Partners Institute, a nonprofit insurance industry organization, said new research may also yield more detailed information on how consumers use insurance to build and protect their wealth.

UIPI said it is sponsoring a separate study on how consumers, especially the growing multicultural, immigrant and urban consumer market, can be underwritten more accurately with new data.

This data, some of which is newly available from the banking industry and can be used in quoting rates, allows insurers to offer more competitive rates, according to UIPI.