Some insurers are looking to pull away from their competitors by implementing hyper-personalized digital distribution channels that offer customers exceptional experiences and the chance to buy additional products and services tailored to their specific needs.

The rapid spread of digital technology has dramatically empowered consumers throughout the world. And insurers are scrambling to meet their rising expectations.

Some carriers are looking to pull away from their competitors by providing their customers with hyper-personalized, or customer-centric, digital offerings. They aim to differentiate themselves by developing digital distribution channels that are highly focused on the needs and preferences of their customers.

Hyper-personalized digital distribution channels capitalize on the willingness of consumers to share their personal information in return for improved or additional services. Our research shows that 82 percent of insurance customers are prepared to provide their insurers with information about their behavior if it can help them optimize their cover. Furthermore, 78 percent are willing to allow their insurers to use such information if it gives them access to personalized offers. The demand for personalized services is so strong that 72 percent of the customers who were thinking of changing their insurers within the next 12 months said these services were important factors in their choice of an alternative insurance provider.

Before insurers can roll out hyper-personalized channels they need to gain a deep understanding of their customers’ individual contexts. Information gathered from multiple touchpoints, and analyzed using advanced data analytics, provides carriers with accurate insight into the attitudes and behavior of their customers. This data can be segmented in a variety of news ways to help insurers tailor digital experiences to match customer expectations. It also enables them to adapt insurance cover and pricing to suit the specific circumstances of their customers.

The close ties carriers build with their customers through hyper-personalized distribution channels provides them with a constant stream of valuable new information they can use to further refine their insurance offerings and cross-sell other products and services.

The United Services Automobile Association (USAA), for example, gathers data from social media platforms as well as its own interactive digital services and uses sophisticated analytics systems to highly personalize all aspects of its engagement with customers. Its Auto Circle service advises customers not only when they’re buying automotive insurance but also when they’re looking to purchase, repair or sell a vehicle. Moreover, USAA helps customers plan and manage their finances by providing them with fully-digital mobile tools tailored for various stages of life. USAA further cultivates close ties with its customers by promoting social media community groups. Its “Ask USAA” online advisory service addresses a wide range of professional and personal circumstances.

Hiscox is another big insurer that is implementing a hyper-personalized distribution channel. The UK-listed company provides small businesses in several countries with sophisticated web services that allow them to assess their own insurance risk and buy appropriate cover. Insurance offerings can be tailored to suit the needs of specific professions and also cover particular risks. The easy-to-use web services, backed by advanced data analytics, enable Hiscox to quickly assess risk, calculate quotes and issue policies on line.

As digital technology continues to spread into almost all facets of consumers’ lives hyper-personalized services will become increasingly prominent. They’re likely to become components of living services that constantly adapt to the behavioral information they receive to provide consumers with attractive ‘liquid’ digital offerings that suit their changing circumstances.

For further information about hyper-personalized distribution channels and living services take a look at these links. I’m sure you’ll find them very helpful.

Digital Insurance: Reimagining Insurance Distribution

Living Services: The next wave in the digitization of everything

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