Other parts of this series:
As technology advances and consumer expectations continue to shift, insurance carriers must adapt to thrive.
Previously, I shared some key findings about insurance consumers’ priorities and desires from Accenture’s 2019 Global Financial Services Consumer Study. It’s clear that insurers have to get context right and pay close attention to how their customers prefer to interact with them. Consumers seek integration and value-added offers that suit their lifestyles and behaviors, and they want to know their insurer prioritizes the security of information they choose to share.
Insurers that position their businesses for continuous growth by becoming hyper-relevant to their customers, adopting fluid business models and flexible platforms and talent to adapt and innovate at speed and scale, will become “living businesses”. This shift opens insurers up to an estimated $177 billion opportunity to earn revenue from new streams and operations.
Evolving to a living business requires understanding customers and the role they expect insurers to fulfill in their lives. The 2019 Global Financial Services Consumer Study highlights five steps insurers can take to start the journey to becoming a living business.
Meet core needs
Cooperate with non-financial vendors to provide integrated propositions around core customer needs. Liberty Mutual is serving new home owners by leveraging its Solaria Labs data-driven insights to provide livability information, such as noise and safety levels, related to specific addresses. Further to this, its Dwellbeing service helps homeowners maintain their homes with task lists, maintenance instructions and directions for hiring professional contractors.
Find the segment of one
Actively target customers interested in personalized services with experiences that strengthen their brand affiliation at every touchpoint.
Incentivize for reciprocation
Offer advice, better terms or other forms of genuine value to those who might be interested in exchanging data for personalized services. John Hancock now offers its life insurance customers an Apple Watch for as low as $25 when they exercise regularly and record their healthy lifestyle information.
Match channels to consumers
Integrate physical and digital channels to find the right mix of automation and human interaction in the customer experience, tailored to customer preferences.
While great customer experiences and pricing will draw in customers, the ecosystems and partnerships required to deliver these differentiators pose data security challenges. Carriers must inform customers about data security and how their data is shared with ecosystem vendors and partners. A data breach could have serious consequences for customer retention.
These steps serve as guidelines. Instead of following a blueprint, living businesses will shape their offerings around their customers, whom they understand, value and reward. They will innovate and evolve as markets and technology change.