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Hyper-Personalised Insurance With InsurTech
Insurance InsurTech

Hyper-Personalised Insurance With InsurTech

By Rajarshi January 22, 2024 - 68 views

The personalised assurance segment is on an upswing, with more insurers digitalising customer journeys fully while embracing hyper-personalised services driven by data. This enables them to deliver superior services and ensure improved customer outcomes in tandem with elevating overall brand awareness, engagement and customer retention. Why is it becoming necessary? An example is to illustrate the need for hyper-personalisation.

A survey by Capco saw close to 14,000 respondents throughout 13 global markets offering their opinions. Most people experienced issues with claims, especially with lengthy paperwork and higher response times while 37% of consumers confirmed that their lack of information about available products or insurance.

28% of uninsured people cited this as a key reason while 25% found insurance unnecessary. 57% wanted better online experiences from their insurance companies, while 66% of customers with policies were eager to use apps that helped them see their financial products more easily. 72% are agreeable to sharing personal data to get more affordable premiums, while it increases to 87% for younger consumers between the ages of 18 and 24.

This makes a case for the advent of hyper-personalised insurance driven by InsurTech solutions in the contemporary era. Here’s learning more about the same below.

What Hyper-Personalisation Entails for Insurers

Hyper-personalised approaches towards insurance solutions are the new norm, backed by connected devices and data analytics. Insurance companies are now deploying AI and machine learning along with IoT and telematics to learn more about their customers.

They are using data for identifying low-risk customers while offering them cheaper premiums or usage-based premiums accordingly. Insurance companies are managing risks more efficiently with hyper-personalisation.

While it is helping them fit the right customers to the right products at the right time, it also enables seamless data gathering without intruding on customers’ time and privacy. The approach fuses bigger data collection blueprints (across third-party, personal, telemetry and external data) and tapping the same for developing a dynamic and evolving understanding of customers across segments.

This information is then used to tailor customer engagement both physically and digitally. The objective of hyper-personalisation is to facilitate contextual, relevant and tailored interactions across marketing, sales, servicing, underwriting and claims. AI-driven journey orchestration engines or real-time interaction platforms are helping insurers considerably boost customer loyalty.

This can be done by responding to behavioural changes or predicting the same via algorithms. It will naturally increase retention rates for customers while also indirectly scaling up customer acquisition efficacy at the same time.

Advantages of Hyper-Personalisation

Hyper-personalised insurance comes with numerous benefits for policyholders. Some of them include the following:

  • Delivery of tailored coverage with InsurTech platforms and solutions.
  • Leveraging automation, AI, analytics and big data for building customised insurance solutions across home, travel, health and other categories.
  • Customers can save money and time along with lowering their overall effort to gain information and assistance.
  • Customer experiences are hugely improved with unique messaging and interaction throughout multiple channels.
  • Filtering out the market buzz while helping customers make better and more informed decisions.
  • Insurance companies can lower marketing spending and reach out to targeted customers across segments, while boosting sales and ROI (return on investments).
  • Superior growth in customer volumes and engagement through adapting products to fit specific customer needs and managing renewals proactively.
  • Unlocking greater value through data-based and customer-centric approaches while scaling up potential customer conversion rates with tailored offers and solutions.
  • Higher insurance agent productivity through lower prospecting times.

Implementing Hyper-Personalisation

Here are a few aspects that can facilitate the better implementation of hyper-personalised insurance.

  • Reorienting approaches towards customer centricity, while mapping out the full customer journey and aligning goals towards these pathways.
  • Keeping data at the core of the business, while leveraging analytics, AI, cloud platforms, machine learning, and business process agility to enable hyper-personalisation. This will help enable recommendations and assistance across claims and underwriting.
  • Implementing a mechanism for smoothly gathering customer data across sources including customer account information, CRM, marketing and internet data, claims and fraud data, multi-channel interaction data and other sources. Real-time data like behaviour, dates, locations and times can also be sourced from websites, social media platforms, mobile app activity and IoT data from telematics and wearables. This helps build one-on-one user relationships while enabling a better understanding of consumer behaviour.
  • Establishing data privacy mechanisms and protocols is also essential in this context.
  • The next mechanism is tailoring relevant products and services through prediction/anticipation of customer needs via insights garnered through customer behaviour and perceptions. Insurers can classify data for creating digital experiences tailored to meet customer expectations. They can also keep modifying insurance costs and policies to take customer needs into account. They can also cross-sell other solutions and products to customers on suitable channels and at suitable times.

Hyper-personalised insurance can thus be implemented with a strong foundation in data and analytics along with other InsurTech solutions. Capturing and addressing customer needs and pain points throughout their journey while engaging them with specifically tailored offers and products is the need of the hour.

FAQs

In what ways does hyper-personalisation translate to tangible benefits for policyholders?

Hyper-personalisation can unlock numerous benefits for insurance policyholders. They benefit from getting tailored offers and products along with prompt responses and assistance based on their behavioural data, preferences and purchase history. They can benefit from improved engagement and user experiences along with customised product solutions and pricing along with enhanced transparency.

What categories of data serve as the foundational elements for personalising insurance policies under the hyper-personalised model?

There are several data categories which are key foundational elements for the personalisation of insurance policies. These include demographic data, claims histories, risk factors, granular behaviour information, activity and experience data, social media data and more.

Can the hyper-personalisation approach be universally applied across diverse insurance categories?

The hyper-personalisation approach can be applied universally throughout multiple categories of insurance. These include home, health, travel, auto and more.

How is the privacy of policyholders safeguarded amidst the data-intensive nature of hyper-personalised insurance?

Insurance companies can safeguard the privacy of policyholders’ data with access control, regular assessments of risks and advanced encryption techniques. Other steps that insurers can take include regular systems for monitoring data usage.

In the event of a dispute or claim within the hyper-personalized insurance paradigm, how are such matters addressed by insurers?

Insurance companies can tackle claims or disputes within a hyper-personalised framework by offering assistance promptly via Chatbots and other technological tools along with advice/help guides. They can also put in place measures for swiftly validating claims with AI along with implementing quicker claim processes and offering a fair and transparent view into pricing and claim processing mechanisms. 

 

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