In today’s competitive landscape, the lines between product and price offerings among Asian insurers are blurring, compelling companies to find innovative ways to capture customer attention and secure their business. As a result, customer engagement and experience have become paramount to success. Despite insurers’ efforts to prioritize customer-centric approaches and personalized experiences, a staggering 74% of consumers have abandoned purchases due to feeling overwhelmed, according to “The Empowered Consumer”, Accenture’s global consumer research 2024. Moreover, consumer trust and loyalty remain alarmingly low, with just 39% of consumers believing that companies have their best interests at heart.

Why is this happening? Based on recent studies carried out by Accenture, both globally and in the Chinese market, we have summarized some key findings.  

• Information overload: Consumers often encounter excessive information, leading to frustration as they struggle to filter and validate the information. 62% of consumers feel overwhelmed by the abundance of options available to them.  

• Crowded market: In Reinvent Relevance in the Age of Overload, we found that nearly 80% of Chief Marketing Officers (CMOs) across industries in China note that product offerings and marketing strategies have become homogenized. While more options exist, this has created confusion and decision paralysis among consumers. 

• Evolving customer expectations: Consumers are increasingly focused on buying brands rather than just buying products, and a positive brand experience is particularly important for insurance as purchasing decisions are less frequent compared to other consumer goods. To succeed in this complex environment, insurers must reinvent customer relationships – through adapting, innovating, and leveraging technology.  

Taking these into account, this blog focuses on three levers to foster and maintain profitable growth, by enhancing customer engagement and experience: 

1. Drive data-driven marketing with AI:   

Advancements in data analytics and artificial intelligence have made hyper-personalization more accessible, guiding customers through their decision-making journey. 94% of Chinese  CMOs believe that Gen AI capabilities can help enhance organization efficiency and agility in response to market demands. 

The integration of AI tools enables marketing campaigns to focus on relevant topics and upcoming plays, generating marketing messages to stay top of mind. It also enables agents with tailored recommendations and advanced insights based on customer interests, engagement history and lifestyle factors.  

We see insurers differentiating themselves by developing AI capabilities that match products to customers based on a variety of data factors, providing recommendations based on the degree of alignment between the products and the customers’ needs.  

While data is the cornerstone of AI capabilities, many organizations struggle, with 65% facing challenges in building end-to-end data foundation. They often lack clarity on which data is relevant and are uncertain where to begin. As insurers navigate this complex landscape, prioritizing data organization and fostering collaboration between technology and human insight could unlock the transformative potential of AI. 

2. Embrace marketing technology to drive innovation and speed

68% of Chinese CMOs feel that customer expectations are evolving faster than their companies can keep up. Being able to respond quickly to these demands is crucial for success. To bridge this gap, insurers need to harness Marketing Technology (Martech) to gain valuable insights into customer preferences, enabling quicker responses through automated campaign workflows and more targeted marketing. This means delivering campaigns at the right time and in the right format, tailored to each customer’s unique preferences.  

To further enhance their marketing strategies, insurers should consider integrating Martech into their core and data platforms. This integration can create a more seamless journey from campaign planning, execution to tracking, allowing marketing resources to focus on their primary task – driving creative innovation – rather than getting bogged down in administrative work. We have collaborated with a leading financial institution in Hong Kong to elevate its Martech capabilities and improve its marketing operations. They have launched a new strategy focused on engaging customers through targeted marketing campaigns, utilizing insights from customer segmentation, product analysis, analytics, and various media channels. This comprehensive approach resulted in impressive outcomes: a 65% increase in new business, a 10% boost in reactivating existing customers, and a 25% improvement in marketing operations efficiency.  

While tailoring marketing strategies based on customers’ behaviors and preferences, Martech should also enable omni-channel capabilities across multiple touchpoints. Ensuring consistent messaging and seamless transitions between channels helps insurers engage with customers effectively and bring a cohesive brand experience.  

3. Foster meaningful interactions and build a customer-centric ecosystem

When products and services among companies have become highly homogenous, customers assess them not only based on the transactional relationship, but more importantly, the broader experience they have with the brand. They seek distinctive and memorable interactions that may not directly relate to the product they are buying. 76% of shoppers who find joy in shopping are likely to recommend a brand to others, highlighting how positive and engaging experiences greatly influence brand advocacy and customer loyalty. This emphasis on unique experiences is particularly crucial for the insurance industry, where purchasing decisions are less frequent compared to other consumer goods.  

Insurers can either build the ecosystem internally by integrating various product lines and services, or through collaborating with external ecosystem partners to expand the expertise. In fact, few insurers are already utilizing ecosystems to bring value-added experiences and expand their customer base. This can include partnerships with organizations in health and wellness, retail, entertainment, and travel to offer unique perks and experiences for policyholders. They may also organize events such as outdoor yoga classes, running events, and outdoor movie nights to position themselves as comprehensive health and wellness partners. 

For instance, one of the insurers in Hong Kong has entered into a cross-industry partnership with an online Food and Beverage guide platform to offer exclusive loyalty experience, health and wellness incentives, and become the first insurer in Hong Kong to provide protection for any accidents related to dining experience. 

To truly excel, insurers must strive to provide unique and memorable experiences. While most customers may not grasp the technical disparities between products offered by different insurers, they do recognize when they encounter exceptional ‘wow’ moments. Evaluating your current standing amongst competitors and actively seeking ways to deliver distinctive experiences can help your brand leave a lasting impression on customers. 

Conclusion 

Standing out with unique experiences is the key to securing enduring customer relationships and leading the way in the dynamic insurance landscape. As insurers navigate this challenging terrain, their dedication to customer engagement and differentiation will be the catalyst for sustained business growth. We believe the insights we have gleaned in Asia can inspire leading insurers in other regions for their future customer engagement efforts.