Why insurance consumers are willing to give up their data for personalized service

Personalization is becoming commonplace in just about every industry. All research points toward the same conclusion. Consumers expect an experience that’s personalized to them to satisfy their specific needs.

Insurers should take note of this trend. Consumers are looking for personalized service, up to 80% of customers are interested in personalized offers, and a staggering 77% are willing to give up personal data about their usage and behavior to get personalized, competitively-priced insurance. So how can insurers take advantage of this trend?

Insurers must adopt a new mentality 

Traditionally, insurance companies only really interact when payment is required, or when a client files an insurance claim. But today’s consumers expect a higher caliber of service. It is better to create a relationship rather than use the traditional transactional approach.

Providing customers with a relationship-based insurance experience can lead them to develop a more positive perception of your company. This, in turn, prevents losses and aids in the improvement of their financial stability, and well-being. This idea can drive the growth of new product categories such as customized insurance.

Insurers can capitalize on personalization

The tremendous amount of data available to insurers makes it easier than ever to capitalize on the personalization of insurance. Microsegments and propensity models can easily be crafted with the enormous amounts information available in databases.

Insurance companies can leverage this data to create personalized insurance offers to specific market segments and offer competitive pricing to individual customers across marketing channels, including web-based ads, mobile advertisements, and in physical insurance offices.

By leveraging this data, insurers can deliver personalized, omnichannel marketing experiences that are more likely to bring in new customers, increase loyalty, while retaining existing customers.

Insurers must deliver on customer needs

An insurer should have a close relationship with their clients to understand their needs. Constant contact and interaction with customers is the best way to deliver a strong value proposition to customers.

Insurers must move beyond an indemnification and transactional-based model with their customers.

The modern customer expects a relationship that is based on protection, communication, and service. Unless your company is providing these things, you are at risk of being pushed out of the extremely competitive market.

Convenience and ease-of-use are critical 

Customers also expect an easy-to-use, intuitive claims and payment process. Excessive paperwork, long wait times for payments, and other factors are among the most common negative associations with insurers, and insurers should take immediate steps to remedy these issues.

Faster payments translate to less time dealing with insurers, and a more positive, relationship-based consumer experience. Payment solutions such as Deluxe eChecks offer insurance companies an inexpensive, easy-to-implement method to increase customer satisfaction.

Implement personalized, convenient, relationship-based insurance systems – and watch your company grow 

The insurance industry is extremely competitive, and your business needs every edge it can get in today’s market. Take advantage of this change in the attitude of consumers, and watch your relationships with your customers flourish.

Insurance Trends