5 ways the best insurance companies are winning more customers.

5 ways the best insurance companies are winning more customers.

The new age customer has technology at their fingertips and the tech savviness to find the best bang for their buck in a competitive landscape of insurance providers. So what are the best insurance companies doing to stay ahead of the game and win?

1. Understanding their customers & building trust

It is now more apparent than ever that there is no ‘one size fits all’ when it comes to insurance, with many providers shifting their focus to personalised premiums and usage-based coverage. Digital technology, artificial intelligence and advanced analytics are providing valuable insights around the demographics, lifestyles and behaviours of different buyer personas, developing detailed individual risk profiles. Take Discovery Insure’s Vitality Drive for example, who leverage a vehicle telematic device to not only detect when a vehicle has been in an accident, stolen or broken down, but rewards drivers (especially 18-25’s) for not exceeding speed limits, braking too hard or using phones irresponsibly while behind the wheel.

Intuitive data such as this, is allowing the ‘InsureTechs’ of today to deliver more meaningful information across multiple touchpoints and multiple channels. This programmatic marketing approach helps target the right customer at the right time, driving more engagement and building brand trust. RAC insurance Western Australia and Desjardins Insurance in Canada as examples, are now providing SMS and email notifications for severe weather warnings, while Allstate Insurance (USA) are enabling policy holders to not only signal for roadside assistance, but also submit claims digitally all from their smartphone app. 

2. Offering the best customer experience

We are now in a realm where customer experience (CX) is king and loyalty is the jewel in the crown, with the most successful insurance companies globally shifting from policy focused to customer centric strategies.

Streamlined claims processes, live chat capabilities, 24/hr emergency help and fast automated quotes are just some of the service capabilities that are making customers feel more valued, feel their needs are understood and that they are being spoken to not B2C or B2B, but B2-human. In fact, according to stats in a recent property claims satisfaction study by JD Power, 60% of insurance claimants who showed dissatisfaction with their provider’s customer service said they would look for a new provider the following year, where 90% of “highly satisfied” claimants stated they would renew.

Top notch customer service = the best customer experience

Engaging policy holders / intermediary agents with drip and trigger based nurture campaigns allows for more meaningful and targeted conversations in demand driven journeys. Too often insurers just send one policy change notice and renewal bill per year and not focus on top, middle and bottom of sales funnel optimisation to drive more acquisition and renewal wins.

What really sits at the backbone of gaining more wins in insurance, are the underlying company processes that streamline how different teams and systems align with each other to manage leads / their agents / customers and claims. Establishing a cadence of marketing qualified and scored leads effectively being passed to sales to nurture, is an effective way to prevent a leaky sales funnel and drive more loyalty, reduce churn and boost ROI.

3. Optimising customer loyalty

Have you ever heard the famous statistic that it’s 60-70% easier to sell to someone you have already sold to before, while selling to someone new is only 5-20%?

Insurers who are staying ahead of the curve and driving customer loyalty, are those that are incentivising and rewarding the adoption of risk minimising behaviours and tools. Some are even partnering with retailers to offer cashbacks and discounts on such products.

Digital innovation is putting devices like anti-theft vehicle trackers, CCTV cameras and health monitoring tools in the hands of tech savvy consumers. Medtronic’s MyCareLink Heart app for example is allowing real-time heartrate data to be pulled from pacemakers, while FreeStyle Libre is pioneering blood sugar readings for diabetes patients from electronic sensors to a smartphone app. Not only is this new technology landscape allowing for policy holders to optimise their health and safety, it is also driving a demand for decreased premium prices in reward for minimising claim and liability risk.

4. Keeping on top of data

Huge customer databases of active, old and dormant contacts, numerous risk profiles, claims, actuarial models as well as large partner ecosystems… sound familiar?

With a never ending influx of admin and data (not to mention GDPR compliance and PoPI in South Africa), there has never been a more important time to keep afloat with customer relationship management (CRM) and digital CRM solutions. One way the best insurance companies, like ONVZ a Dutch health insurer, are overcoming this hurdle, is by setting up re-engagement and retargeting campaigns. By re-engaging contacts with a digital health questionnaire, ONVZ  not only updated their current customer database in a compliant way with automated triggers, they were also able to identify new potential opportunities and fresh insights into each database contact.

If CRM is the machine then data is the oil, and from interpreting data correctly companies can implement more effective database segmentation. With good segmentation comes more meaningful and targeted communications where they matter most, therefore increased efficiency, a reduction in inherent costs and ultimately – higher ROI.

5. Data privacy

The flavour of the month seems very much centred around data compliancy and GDPR / PoPI, with companies like Facebook, British Airways and Marriott, copping hefty fines for not having the right systems in place to ensure customer data is kept private. Insurance companies are constantly having to keep up with ever changing government policy, legislative changes across different countries in different languages with the underlying compliance being crucial to sustainability.

As it happens, CRM is not always the single source of truth as its common for data to sit in other areas than the main hub. Introducing data capture methods across web, social and other channels, gathers privacy consent in a GDPR / PoPI compliant way that is transparent to customers and puts them in control of what information they wish to share. So instead of viewing GDPR / PoPI compliance as a burden where the regulation has made some legacy data unusable because of unreliable records of consent, the companies that are viewing GDPR as an opportunity to build customer trust are those that are having a competitive edge in the market.

A safety net system with these functionalities to consider is having a marketing automation platform in place. Not only can a platform act as a system of record for compliance, but it will streamline customer journeys, build loyalty, align sales and marketing teams and enhance overall customer experience.

Additionally, if you would find value in how you can better prepare for the future and put some of these practices in place it would be great to connect! We at Engagement Factory would love to share how we can help.

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