Personalization is a key differentiator for insurers
Consumers are looking to their insurance providers to deliver omni-channel experiences that players in other industries are already providing, and they are also seeking tailored, customized offers from their insurers. What’s more, they are willing to trade personal data in exchange for benefits such as better pricing or more relevant and personalized advice.
Our “2019 Global Financial Services Consumer Study – Insurance” surveyed 47,000 insurance and banking customers in 28 markets in Asia, Europe and North America to understand what these consumers value, what differentiates them and how they want to engage with financial providers. The research identified several patterns among consumers, which can be distilled into five key findings:
A seamless multi-channel experience is a priority for the majority of customers
Insurers must leverage their physical footprint and integrate physical and digital services to meet customer needs more effectively; 66 percent of consumers say they don’t mind which channel they use since their main concern is to get what they want quickly and easily.
Personalization is likely to be a highly valued differentiator
Consumers want tailored, customized offers from their insurers. Some 64 percent are interested in premiums tied to safe driving, and 52 percent in life policies where premiums are tied to a healthy lifestyle.
Integrated propositions will be well received
Carriers should look at bundled offerings that combine products and services from insurers and other vendors to give customers a one-stop-shop. Half of all consumers are interested in bundled services such as home-care, home-security, health & wellbeing, car-care and home-buying packages.
Consumers are willing to share data
Consumers will trade data with their insurers in return for better advice and more attractive deals. Insurers should offer reciprocal benefits to customers who share their data. More than 80 percent of consumers are willing to share personal data in exchange for benefits such as more competitive prices; faster, easier services; priority service; and more relevant advice for their personal circumstances.
Trust is critical to retaining customers
Trust is not necessarily a driver of loyalty, but the erosion of trust will certainly increase attrition. Consumers are far more likely to trust traditional providers than non-traditional providers such as telecoms companies, social networks and retailers.
How can insurers serve a million markets of one? Read our 2019 Global Financial Services Consumer Study for insights that will help.