The Results Are In: Today’s Insurance Customers Want Personalization

Today’s consumers are used to receiving personalized offers and customized solutions to meet their needs.  No matter the industry, a consumer expects to be known and communicated with accordingly. The insurance industry is certainly no exception. Your customers seek personalized offers, messages, pricing and recommendations from their auto, home or life insurance providers. Adapt your strategies to keep up in this hyper-competitive marketplace.

Bundled Solutions

The concept of bundling is not a new notion for insurers. Customers are substantially more content when they purchased home and auto coverage from the same provider. Bundle customers are more likely to renew with their providers. While bundling has previously encouraged consumers to seek out packages based more on price, insurers now have an opportunity to realign their strategies to provide bundled packages to meet consumer demands for more personalization. 

Consumers are seeking more innovative packages and policies to meet their unique needs and circumstances. Many consumers would purchase a financial package or bundle that was customized for a specific time in life. Cross-category bundling is appealing to many consumers and gaining in momentum. 

Do You Know Your Customers Well? 

Delivering the level of personalization that consumers require must be based on a foundation of solid data insights.  Insurers must also utilize behavioral insights in order to develop a more comprehensive customer view.

The majority of people are willing to provide usage and behavior data in exchange for lower premiums, quicker claims settlement or insurance coverage recommendations.  

Examples of personalized, real-time digital or mobile services:

  • Offers based on customer needs and products that they already own.
  • Messages that customers find relevant and that build on their relationship and previous interactions with the insurer.
  • Pricing that dynamically considers customers’ behaviors, usage and loss-prevention measures taken.
  • Recommendations and incentives to prevent losses or reduce loss severity.

Value of Personalized Services

Consumers are demanding more personalization from their insurance providers – and they’re willing to pay for it. Customized promotions encourage new product and service purchases. 

Many insurers say that heightened targeted promotions are the key driver of improved online sales. With the right blend of personalization to enhance the customer experience, you may raise the acquisition rate and reduce churn. Buying experiences are largely based on how the customer feels they are treated after they become a customer, and many end business with a company after a poor customer experience.

To deliver highly personalized and positive experiences,  you must invest in the data, technology, and analytics to understand and share customer preferences, interactions, and other customer data across channels. It’s crucial to understand customer behaviors to personalize interactions at any point in time and in any channel.

This must begin at the very beginning of a consumer’s path to purchase, such as offering discounts on policies relevant to search data and customizing online search results.  

Integrate technology platforms and data to maintain a clear view of who the policyholder is and their preferences- whether the customer is interacting through billing, claims departments, customer service, or other departments. By being more proactive in understanding consumers and their individual needs, you’re able to send targeted offers and services effectively.

About Provident Insurance Programs

With roots dating back to 1902, Provident Insurance Programs is a program administrator that serves paid and volunteer firefighters in addition to emergency medical responders with numerous custom-tailored insurance programs. We’ve also extended our expertise and experience to offer benefit plans and coverages to participant groups as well as Transportation Benefits. We are committed to continuing to provide superior customer service, and would be happy to speak with you to provide further information. Give us a call today at (855) 201-8880 to speak with one of our representatives.

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