How to improve Insurtech customers’ engagement?

The insurance industry represents a dynamic environment where customer experience is crucial. Every insurer company competes with the others to attract and engage more customers. Some of the significant companies in the industry are already approaching new ways to satisfy their customers. But sometimes, big brands face more difficulties when adopting digitalization compared to small ones.

At this point, small companies with distinctive vision can find an opportunity to outplay the big players. But it is easier said than done. Smaller brands should keep up with the innovative trends and implement them into their business model. This way, they will have a chance to build a customer base and grow. 

Applying digital solutions to your insurance services is a great step to take if your goal is better customer engagement and long relationships with your clients. To assist you, we will delve into some of the key trends that you should be familiar with if you decide to develop insurtech software. 

Personalized Insurance Products

With personalized insurance packages, brands have the opportunity to engage with customers as never before. Each individual may have different desires about the insurance policy. 

However, there is one thing you can do to satisfy them. Individualizing the customer experience is the way to go. For example, an insurance app or adjustable policy on your website will allow the customers to pick the things they want and remove the things they don’t. As an example, we can give InsureApp. This is one of the first apps that offer hyper-personalized and extremely smart insurance products. 

If we take a look at the forecast of Earnix, we can see that customer engagement is most affected when adopting personalization. Notice that the numbers come from companies that already offer advanced personalization, and these are the benefits they saw. 

To personalize the experience of every customer will require data and different data analytics tools. The automotive insurance companies already use telematics systems to achieve optimal personalization. Like this, insurers can monitor a vehicle, record data from it, avoid fraud, and contextualize different human behavior. 

Health care insurers also rely on data that is extracted from wearables and smart devices. With this data, insurers can monitor for risk-potential clients and recommend treatment, showing that they care about them. But the most efficient way to obtain more valuable data is to connect with the client for a short Q&A session, which can be automated using an AI chatbot. A great example is Maya, Lemonade’s chatbot, which gathers and analyzes customer’s data. 

Telematics and Gamification

Telematics is the key to better customer engagement. For example, let’s look at automotive insurances. The telematics systems represent a combination of technology and telecommunication, where a tracking device receives, sends, and stores the vehicle’s telemetry data. This device will gather GPS information, speed, vehicle faults, harsh braking, and more information related to your driving approach.

With the use of telematics, insurers can obtain some core facts about your driving habits and allocate the bad ones. So in case you are getting insurance for your car, the insurer will have all the information of how you drive, what you might do, where the vehicle is stored overnight, how many miles you drive daily, and more. 

The data from the device is produced every second and helps insurers get a step closer to their clients. In this way, a client will receive a policy on his specific driving approach. But telematics can bring some major IT challenges. The main one is the storage and the processing of the enormous amount of data. With the help of Big Data, companies have the ability to differentiate the data to get a competitive advantage. Therefore insurance carriers can offer better and more accurate pricing based on your driving habits. 

Applying gamification tactics to telematics is a strategy that companies already use. For example, insurers can reward their clients for sharing their behavior data or rewarding longevity as loyal clients. The examples are countless. This will also simplify the journey of the user and boost the experience. These simple steps will help you build a long-lasting customer base in order to succeed in the industry. 

With gamification, you can make customers do what you want, but only if they get a reward at the end. To achieve maximal customer engagement through gamification, insurers have to think out of the box and come with ideas on how both sides can win. Aviva is one of the companies that came with an innovative driving app. With it, customers can record their driving skills and earn a score. Depending on this score, users can receive discounts based on their driving behavior. 

Automatization

With digital transformation comes automation. While some sectors like eCommerce are now fully automated and granting the customers outstanding satisfaction, the insurance industry stays behind. Yet, some insurance companies are already combining technology and data in order to automate the insurance process.

Lemonade is one of these companies that have already automated the insurance process. On their platform, every client can receive digital insurance services without any paperwork. They also have a personal artificial intelligence bot that will assist you in building individual coverage for your needs. And with their app, you can get insured with just a few clicks. 

An example of the successful adoption of automation in the insurance industry is Generali. After restructuring their system’s architecture and removing the paper-based methods, the company saw increases in workflow efficiency. After automating 38 processes, underwriting complex offers decreased by 50%, and the costs were reduced by 60% by the increased productivity. 

Social Media Integration

Nowadays, insurance companies can use social media as a disruptive advantage and grow on the social media maturity curve. Companies now can listen to their customers via different social media platforms and collect vital data at the same time. While listening to their customers, insurers have the opportunity to engage them and build trust. Yet, companies can link their social media channels to CRM software. Therefore, they can separate their customer base into different segments, where every group of customers has similar preferences. This helps insurers retain their customers and provide personalized policies and insurance products. 

The last step of social media maturity is to transform. As the traditional insurance techniques lack behind the innovative insurers, find a way to succeed by changing the business model. Insurance organizations now use complex AI and It-enabled social media tools to protect their market positions and remain competitive.

If you take a look at the chart below, you will see every step of the social media maturity and the complexity level.

Conclusion

With the growing digitalization, the customer now expects more and more from insurance companies. The trends and strategies that we mentioned above are keys to satisfy the customers’ needs and increase engagement in the insurance industry. 

We hope that we assisted you in making the right decision and taking the right steps for your business while successfully understanding how to float into this hyper-competitive environment. Still, you can contact us, MassMedia Group, if you need additional insights, high-quality IT consulting, and software development. Don’t hesitate to challenge us with your project. We are here to provide you with comprehensive custom IT solutions in order to achieve your business goals!