For insurers, offering a personalized insurance experience is no longer an option—it is an imperative. Michael Costonis shares five stages on the journey to achieving personalization and agility.

How well do insurers know their customers? Consider Maria, a thirty-something woman living in a large city with her fiancé and his two children. Their household income is between $50,000 and $75,000 and they own one vehicle and a three-bedroom townhouse.

Historically, this could have been enough information for an insurer to provide adequate customer service. However, digital disruption has changed many customers’ expectations and how they interact with service providers. Maria and her family would likely respond more favorably to an insurer who knows that her route to work is less dangerous than the average commute, that she is a safe driver who rarely speeds and that the family never leaves the house without setting the alarm.

Notably, Accenture research found that 77 percent of customers are willing to provide usage and behavior data in exchange for lower premiums, quicker claims settlement or tailored coverage recommendations.

Watch this Insurance Insight of the Week video to learn why it is imperative for insurers to offer a personalized experience.

Five stages to offering more personalized insurance experiences

Leading insurers are beginning to take this approach to deliver more personalized insurance experiences. One major insurer is combining customer profiles, transaction histories and social media data to generate a personalized experience via mobile app. Another is leveraging customer data to create customer microsegments to fine-tune customer retention and cross-selling campaigns.

This much is clear: existing and emerging digital capabilities will only bolster the push to personalization, and insurers cannot afford to ignore the opportunities provided by personalized services.

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