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Personalize the insurance offer or stay out of the game

The post-pandemic scenario will be characterized by a higher degree of personalization in many facets of the lives of consumers and users. Not surprisingly, the significant momentum that digitization has experienced since the beginning of the pandemic has been much greater than in previous years “in order to realize efficient cost structures and to meet the immediacy that customers expect”, as recognized by Uwe Stuhldreier, chief marketing and sales officer of HUK24, the largest direct motor insurer in Germany in interviewed by McKinsey. (1 ).

Customized environment

During the months of confinement, on-demand audiovisual content has been a vital escape from the tedium of a large part of the population and the need to purchase products online has led to the literacy of those who previously did not consider buying anything through this channel. Similarly, many citizens have taken advantage of movement restrictions to seek improvements in their periodic fixed costs, as is the case with insurance, whether life, home, auto or health, among others.
Personalization is present in the current day-to-day life of most of the population: the ever-widening audiovisual offer allows you to choose what you want to see, when and where; The same happens with purchases, the consumer decides when to receive the products; both content and e-commerce platforms suggest content that they predict you will like, based on your preferences, searches and purchase histories, and so on.

Insurance Personalization

In the same way, consumers demand solutions adapted to their needs in the field of insurance and, for this, insurers must rethink their distribution models. It is necessary to offer uninterrupted service, a better customer experience (CX) and greater added value, as reflected in the World Insurance Report 2021 by Capgemini and Efma (2). In this regard, “insurers have the opportunity to convert digital traffic into sales from a hyper-personalized virtual experience,” according to the worldwide CEO of its Financial Services, Anirban Bose.
For all this, insurance companies have at their disposal the advances in technology that, on the one hand, allow them to know the behavior and preferences of consumers, and even data in real-time and, on the other hand, they offer comprehensive solutions that allow them to improve operational efficiency and distribution, such as Product Machine. This tool enables quick product and rate setup, custom targeting and pricing, and quick time-to-market.
In this way, it is easier to successfully understand these important data: 75% of policyholders would be willing to change providers if it offers them flexible solutions, tailored and with a complete customer experience, according to the Capgemini report (3); Furthermore, 69% of consumers would share relevant data on their health, exercise and driving habits in exchange for lower insurance prices (19% more than two years ago), according to Accenture, which also points out that lockdowns have sparked interest in usage-based auto insurance.
Faced with all these challenges, insurers wishing to lead the post-pandemic scenario must speed up their adaptation to the new reality, relying on the extraordinary resources that technology makes available to them.

References:
(1) ‘Revolutionizing insurance: The personalized insurance engine’. Mckinsey
(2) ‘World Insurance Report’. Capgemini y Efma
(3) ‘Aseguradoras deberán adoptar modelos innovadores de negocios para hacer frente al 2021’. Capgemini
(4) ‘Insurance Consumer Study’. Accenture

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