Other parts of this series:
- It’s time for insurers to rethink their approach to insurance personalization
- Digital is key to offering personalized, contextualized insurance experiences
- Living services: Why insurers must move from indemnification to protection
- Capitalizing on the opportunity of personalization: Next steps for insurers
Digital leaders are redefining what customers expect from their insurance providers. Personalized, contextualized experiences can help insurers meet these expectations—and capture new opportunities.
When it comes to customer service, insurance companies face threats from new competitors. Many start-ups have set their sights on the insurance distribution function, coming to market with streamlined, direct offerings that offer a personalized, contextualized customer experience. Notably, customer expectations are no longer defined by insurance companies, but by digital leaders—for example, Amazon customers can shop with a swipe, pay with a tap and receive their items quickly—within two hours in some markets. In addition, both Amazon and Netflix offer recommendations based on previous purchases or selections, as well as a seamless experience across multiple devices.
Insurers must offer personalized customer experiences
Accenture research shows that customers expect similarly seamless, tailored experiences from their insurance providers. Consider that 80 percent of insurance customers seek personalized offers, messages, pricing and recommendations. Further, 77 percent are willing to exchange personal data in exchange for lower premiums, faster claims settlement or tailored coverage recommendations. However, 21 percent report that their providers do not tailor the customer experience at all.
Insurers need to engage in the platform economy
Earlier this year, the Accenture Technology Vision for Insurance 2016 highlighted five technology trends that are causing shifts in the insurance landscape. One trend, the platform economy, outlines the need for insurers to expand beyond their four walls and partner with other organizations to provide better customer outcomes. Yet, Accenture research found that only 61 percent of insurers plan to offer non-insurance products and services.
Insurers need to leverage digital
Traditionally, insurance was bought and sold at the kitchen table—and while some customers are best served by the human touch of an insurance agent, many expect to be able to use digital channels to inform and make their insurance purchases. Yet, only 22 percent of insurers have launched personalized, real-time digital or mobile services, such as personalized offers, dynamic pricing, and recommendations to prevent losses or reduce loss severity.
Insurers must shift their mindset
Insurers that fail to respond to customers’ expectations of personalized service are missing valuable opportunities to foster stronger customer relationships. Further, they risk forfeiting profits and, in the long run, losing market share. The key is to shift from a transactional mentality to a relationship mentality—to become a partner who helps customers live the lifestyle they desire.
- Register to download Satisfy the Craving for Insurance Personalization: Delivering highly relevant, omni-channel customer experiences (PDF).
- Register to download Accenture Technology Vision for Insurance 2016 (PDF).
- Email me to discuss how Accenture can help you deliver personalized insurance experiences.