Personalization can help insurers improve customer outcomes and embed themselves as part of customers’ daily lives. Michael Costonis explains in this Insurance Insight of the Week video.

Insurance is a data-driven business, and today, insurers have access to more data than ever before. The Internet of Things—connected cars, homes and wearables—social media and other third-party data sources can enable an insurer to not only better understand their customers, but derive real-time insights to offer more personalized service.

Crucially, personalization is about more than tailoring the interaction between customer and insurer. It can enable an insurer to improve customer outcomes through loss prevention and protection, optimized pricing and coverage, and value-added or lifestyle services that extend beyond the traditional confines of insurance products. Accenture describes these types of products as living services.

Watch this Insurance Insight of the Week video to learn how personalized services can improve an insurer’s ability to serve its customers.

Customers crave personalized offers—and insurers win by providing them

Crucially, personalization must be tempered with digital trust. As identified in Accenture Technology Vision for Insurance 2016, insurers’ ability to leverage customer data depends on customers trusting that their data will be used judiciously and in ways that they have consented to. Insurers that do not incorporate digital trust into their products from the beginning risk alienating their customers. In this video, I look at the fine line between personalization and privacy violation.

At a time when customers expect their service providers to know who they are and what they want, it is critical for insurers to know their customers as individuals—and to treat them accordingly. Through living services, they can provide a stronger value proposition to their customers, and go beyond indemnification to providing personalized protection.

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