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There’s more to personalization than giving consumers what they want. Successful innovators are building closer relationships with their customers by providing them with an array of additional, highly relevant facilities.
U.K. broker Wejo, for example, is employing several different digital technologies to deliver a suite of services to its automobile insurance customers. Its free mobile app allows customers to buy policies online and receive personalized rates based on their driving behavior. They also qualify for additional services such as parking discounts, real-time traffic updates, event alerts and vehicle sharing notifications. These extra services help Wejo build customer loyalty. They also provide the company with the opportunity to deliver other fee-generating services.
Wejo is applying a range of technologies to keep close to its customers. Sophisticated sensors monitor driving behavior, a cloud computing platform aggregates vast volumes of customer data, and an extensive communications network ensures real-time links with policyholders. Wejo’s substantial investment in technology not only helps the company deliver outstanding service. It’s also been able to significantly curb the cost of its products.
Trōv is another example of an innovative company applying a new, highly personalized, approach to insurance. Its lifestyle app collects data about customers’ possessions, constructs a list of things to be insured, and then provides machine-enhanced risk pricing for single-item coverage. Trōv provides micro-duration policies (down to the second), charges micro-premiums (down to the cent) and uses chat robots to manage claims.
Personalization is an on-going strategy. The longer a company retains a customer, the more information it gleans, and the further it can refine the experience it delivers. The ultra-personalization of services and micro-segmentation of customers provide insurers with a strong competitive advantage.
Allianz has put personalization at the heart of a major product launch in Italy. Its Allianz1 offering allows customers to tailor their cover – whether personal, home or automobile insurance – and helps them manage their risks according to their unique requirements. Rates are determined according to a variety of personal factors in addition to the age, occupation and location of the customer.
Allianz’s customer-centric approach has really paid off. Allianz1 policies have proved popular with consumers. It’s now extending the product by including some of its established business offerings. Allianz1 Pro allows companies to add cover for property damage, public liability, disability and death.
The potential to extend and enhance product offerings is one of the big attractions of personalization. As insurers get to know their customers better, more opportunities emerge. And they’re not limited to insurance.
Personalization provides a great platform for insurers to expand beyond their traditional businesses into new markets. European carriers AXA and Zurich, as well as South African insurer Discovery, have used their extensive customer information systems to push into new markets.
Innovative insurers are putting the customer at the heart of their businesses. And they’re already reaping the rewards.
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