Emerging Tech to Personalize and Connect Insurance to Customers
April 25, 2019

Emerging Tech to Personalize and Connect Insurance to Customers

In this article we are going to highlight how technologies and InsurTech facilitate efficiency across the entire insurance value chain.

The modern world is getting smarter. Reality imposes the consumer-oriented rules for the insurance industry. Fundamentally, innovation-driven technology transforms insurance into a lifestyle solution and offers the opportunity for the insurance sector to have better efficiency and exclusive customer experience.

How can technology assist Insurance in winning customers?

Using InsurTech is the way for technology to stimulate the insurance sector by resolving growing customer expectations and demands. Unique data from smart wearables, mobile apps, blockchain, IoT devices, telematics, etc. can all be processed and applied for individual risk development systems, automated compliance handling, online policy, automatic claims administration, and a lot more.

Experts claim that Personalization and Connectivity are the two strategies driving the insurance sector evolvement within digital transformation.

“88% of Insurance customers require more personalization from providers” – Accenture

How Personal is Personalized

Personalized insurance is all about offering customers quality and value in their interactions, to make their lives easier, based on a better understanding of their needs and requirements. Technology orchestrates the process of digging insights out of demographic data, behavioral/lifestyle segmentation, usage info, market analytics, etc.  to make the customer’s journey comfortable. It assists the insurers in providing:

  • Tailored customer experience through special offers, messaging, prices and designed recommendations.
  • Intensified customer engagement within the key service touchpoints due to consumers’ satisfaction and brand image awareness.
  • Enhanced up-/cross- selling due to emphasized customer value, and simplified sales and insurance processes.
  • Improved ROI, cost-efficiency and margins due to risk assessment and claims prevention.

Personalization triggered by big data, AI, blockchain, IoT, and machine learning algorithms are gaining in proactivity and positive perception by the consumer. Insurers can collect customer data, deeply analyze it and implement relevant technology methods to generate targeted, timely offers. These include:

Meaningful interactions. A holistic approach to every particular customer’s need is fundamental for creating strong engagement. Using cross-channeling like mobile, web, wearables social media, and AI-enabled tools for proactive engagement with a consumer, all help identify customer journeys and offer personalized campaigns with timely products or services.

Tailored pricing practices. A fact-based approach to insurance rates results in more affordable coverage. The sophisticated underwriting, based on data insights of a policyholder’s behaviour, coverage cases, and advanced predictive analytics allows less presumptions but more accurate risk assessments, thus making personalized plans more attractive for individuals.

Hyper-personalized policies. Customized offerings for insurants help them feel they are being served and more valuable. The blend of predictive and data analytics, one-to-one content, cross-channel messaging, NLP, image recognition techniques, and AI tools that match the right products to clients, and allows insurers to create cost-effective and convenient policies.

AI-powered automation.  Thanks to automation across the entire insurance sector, business processes and operations are more consistent across the whole value chain. Starting from chatbots for simple requests, to error-free intelligent claims processing, real-time underwriting, all-inclusive analytics of complex personal data, and blockchained automated execution of claims via smart contracts, automation enables the industry to become smarter and more efficient while moving faster.

Brand image awareness.  Technology-powered methods in insurance marketing allow insurers to understand customers, and to measure and identify opportunities for improving the customer experience and distribution models. By providing valuable recommendations, the insurer contributes to a consumer’s attitude towards brand perception and consequently to upselling and cross-selling.

“Personalization works because it’s relevant. When relevant information is provided, it meets consumers’ needs more effectively and efficiently. Relevant information speeds interactions and improves consumer satisfaction. Every interaction with a consumer is not a singular event, but part of a collective path.”

Seth Birnbaum, CEO and co-founder of EverQuote, a top online auto insurance marketplace in the U.S., for Insurance Thought Leadership.com

Stay connected – move forward.

The insurance world dynamics demand connectivity as an acting element of a business strategy, that is employing cross-sector confluences and digitally related partnerships. The connected insurance is enabled by fact-based insights coming from huge data volumes from connected devices, wearables, smart homes, telematics, etc. by means of AI, IoT, ML, blockchain and other innovative technologies. It means that insurers and customers can now really communicate, and claims can actually be prevented, coverage can be optimized, and better underwriting models and service portfolios can be created. Digital connectivity backed up by data analytics, RPA, and SaaS is a way for insurers to transform their services and offer exactly what a connected customer wants: real-time and comfortable insurance products.

Rethinking insurance and leveraging the right technology lies in the core of the connected insurance concept. Technologies like AI and IoT facilitate in customer retention, based on data variables analysis (context, lifestyle, geolocation, values, smart devices, real-time diagnostics, etc), and enable the most effective personalized offerings possible. Blockchain is a foundation for new payment models, claims processing and “smart” contracts due to information transparency, excellent accuracy and accessibility for all parties. Cloud Computing with its cost efficiency, speed and flexibility, gives insurance an opportunity to deliver innovative products and services, manage risks, and interact with customers and partners in an agile way. Investing in Cybersecurity can help mitigate losses from all types of incidents and reduce the number of successful cyber attacks.

What Connected Insurance really means?

  • Shifting towards the ecosystem by engaging in innovative tech to create an integrated digital experience for the customer.
  • Data and analytics predictive capabilities which enable risk mitigation, product innovation and dynamic pricing.
  • Redefined customer relations and identification of new allied services by multiple enablers.
  • Advancement towards long-term trusted collaborative relationships.
  • Transformation of legacy systems and comprehensive tech upgrades.

InsurTechs already provides competitive differentiators for the insurance sector and enable connectivity personalization, automation, digitally-powered offerings, information access, omni-channel interactions, alternative pricing models, on-demand protection and much much more to respond to the emerging needs of customers.

Regarding the tech partner’s relationship with insurance providers, I think this comes down to collaboration with startups and new ideas within the industry. Working with new innovative InsurTech companies allows insurers to gain a unique perspective and competitive advantage within the market. This would allow both sides to grow broader and more informed insight when working with their customers. Alongside this, a tech partner will be able to collect data enabling the development of a core structured proposition when working with customers. To progress within the insurtech space, I believe it’s important to work together in order to develop more sophisticated solutions that are informed by an array of valuable data. “

Carl Bresnahan, founder of Catenas, an AI biometric company that builds blockchain-enabled solutions

In a market where tech is an inevitable element to get and retain a customer, it’s a matter of a well-balanced strategy for insurance providers to stay connected and pick the right technology enablers. This will initiate a 360o real-time view of a customer, introduce more agility to processes, and enable relevance and innovation for insurance products. 

CoreValue helps transform insurance. We help InsurTech companies and insurance providers to employ the best of both worlds to take full advantage of innovations.

You can read the first article of CoreValue InsurTech blog series here.




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