Thought Leadership

Digital Insurance Data & Great Customer Experiences

Guarantee Great Insurance Experiences with Richer Data

We all want seamless digital experiences – especially now that many of our day-to-day needs can be resolved with just the click of a button. From buying groceries online to paying bills via banking apps, embarking on digital journeys is second nature to many. And, when it comes to taking out insurance, digital experiences that make each stage – from getting cover to making claims –  as convenient as possible are paramount.

Like the rest of the financial services sector, the insurance industry is realizing that it’s time to align with customers’ growing love of digital. This preference for online purchasing options is especially evident within the insurance market, with more than 80% of UK consumers and almost half of those in the US now buying motor insurance online.

This isn’t surprising given the digital-first era we live in, with catalysts like the Covid-19 pandemic accelerating a shift in both policyholders’ and providers’ priorities. In fact, almost 80% of insurance CEOs believe the pandemic has ‘turbo-charged’ their creation of seamless digital experiences.


Why it’s time for insurance to digitize

Seamless digital experiences are clearly needed if insurance companies are to win customers over, especially as they become increasingly confident when comparing providers and policies online. We recently found that 41% of consumers use comparison sites to do so, and a further 29% of people take full ownership of their research (such as by conducting online searches).

The companies that don’t meet today’s expectations are likely to miss out before the brand-consumer relationship even begins, and lose out to policy providers with more of a competitive edge.

To become – and stay – customers’ chosen provider, insurance companies need to better understand their behaviors, motivations, and expectations when purchasing products and services. To identify these, we recently surveyed more than 500 people from across the UK and USA.

Digital Insurance Data

Customers’ preferences, priorities, and purchasing motivations

Money is a key driver in peoples’ searches for insurance providers and policies. Our research found that customers still protect their highest value purchases and future finances through coverage, with nearly 60% of respondents likely to buy or extend a policy after purchasing a car or home, and almost half already owning life cover.

Nevertheless, money isn’t all that matters; depending on insurance providers to protect important assets also requires trust. This explains why, following price, an insurer’s reputation is the most influential factor for people when purchasing policies. Financial benefits also encourage customers to take out additional products with their current provider, with bundled pricing proving to be the biggest incentive for 46% of our respondents.

Yet, despite being key players in customers’ life moments, insurance companies don’t have many chances to win them over. Our research shows that 34% of people only engage with their insurer when making a claim, suggesting that many people still value policy providers from a purely transactional perspective.

Insurance customers want more simplicity, less communication, and better monetary benefits – all from a provider who can protect them and their finances at every stage.


Overcoming the customer data conundrum

For the insurance companies that can tick every box, there’s a real opportunity to foster loyalty and maximize customer lifetime value (CLTV). But, being able to orchestrate journeys that align with customers’ insurance expectations relies on a detailed understanding of them and their coverage needs.

Rich customer data holds many of the answers, but our findings indicate that customers are still reluctant to share personal insights unless tangible financial benefits (such as lower premiums) are a guaranteed exchange.

Now, the onus is on insurers to encourage customers to overcome this hesitancy, and ultimately demonstrate the real value of data sharing. After all, the benefits are mutual.

When customers are satisfied, they can enjoy the simplicity of staying put – with the convenience of managing a portfolio with just one provider motivating 12% of respondents to make multiple purchases. And, when insurers develop enriched data sets based on long-lasting relationships, they can deliver hyper-targeted communications, maximize cross- and upselling opportunities, and optimize their retention strategy all around.

To aggregate and transform mature data sets into a holistic view of each customer, insurance companies need to enhance their digital transformation with the ultimate customer experience tool, an advanced customer data platform (CDP).

Digital Insurance Survey

Embedding in key life moments with the Intelligent Engagement Platform

With our Intelligent Engagement Platform policy providers can learn directly from the people who matter to create digital insurance experiences that count. Combining smart analytics with real-time interaction management (RTIM), our platform equips insurance companies with only the most relevant insights at any given moment, enabling them to make the most of every engagement.

By aggregating all available data sets into always learning profiles, our CDP’s Customer DNA™ functionality aids intelligent decision-making, ensuring that policy providers have a detailed understanding of customers’ financial interests and personal circumstances.

What’s more, digitally transforming with our Intelligent Engagement Platform enables insurers to anticipate customers’ future needs to provide personalized solutions. With next best experience capabilities, insurers can connect their customers to the right content at the right time, from customized pricing bundles to tailored alerts.

Ready to learn how you could create truly meaningful digital experiences with our Intelligent Engagement Platform? Send me a message, request a free demo, or take a look at our CDP solution for insurance companies.

Digital Insurance SurveyDon’t forget to also check out our full report,
Can Digital Insurance Deliver Premium Customer Experience?
It’s ready to be downloaded here.

Download our digital insurance report