The Evolving (Digital) Insurance Customer

Christian Thomson
LinkedIn

Christian is a British-born entrepreneur and founder of Marwick. For over 19 years, Christian has successfully helped businesses excel in digital marketing.

Insurance has changed significantly over the last decade. Consumers are becoming more digital, and the trend is only set to continue. Insurance companies that move quickly to keep up with the evolving insurance customer are the ones that will reap the rewards from this digital shift. 

The Rise of Insurtechs

In response to the digitisation of the consumer landscape, new insurtech companies are disrupting the insurance industry across the globe. Insurtech companies such as Zego, Cuvva, Lemonade and Marshmallow were created to address insurance customer pain points, including what customers saw as unreasonable pricing, a lack of personalised recommendations based on data and a disappointing customer experience. Insurtech companies are addressing the problem by deconstructing traditional and inflexible insurance products. Instead, they are offering customers tailored, data-driven products that meet their specific needs and reward customer loyalty in a way that traditional insurers do not.

Building Loyalty through Data

Consumers who have taken out a policy with traditional insurance providers do not feel like their loyalty is being rewarded. For example, research conducted by Google found that insurance customers increasingly feel penalised by traditional insurance providers. For example, 41 per cent experienced renewal premium increases when they thought their circumstances had not changed.

Insurtech companies aim to work differently. They want to build consumer loyalty through a data-driven approach. More consumers have expressed a desire to purchase one policy that covers all of their insurance needs, to ensure there are no coverage gaps. Offering a single insurance policy allows insurers to learn more about consumer needs through first-party data and use this data to weigh up risk. This, in turn, leads to reduced premiums and loyalty rewards for customers due to economies of scale, a system that benefits all parties. 

Seamless Customer Experiences

Automation has given the insurance industry a world of opportunities for growth and change. Research by Google found that consumers increasingly want seamless insurance experiences where they do not need to update insurance companies about changing circumstances constantly. Instead, consumers want fast, convenient solutions that fit their busy lives. Furthermore, automation allows insurance providers to gamify the customer journey by offering different memberships based on customer behaviour, resulting in a range of benefits. In addition, automating parts of the insurance journey can also reduce the cost of an insurance claims journey by 30 per cent, a win-win for both customers and insurers looking to streamline costs.

Stay Updated with Digital Marketing Trends

The insurance digital marketing landscape in the UK moves incredibly quickly. As a result, insurance companies must constantly reassess their digital marketing activities to ensure they are targeting the right audiences with messaging that catches their attention. Leveraging first-party consumer data will enable insurers to effectively reach their target audiences and sell them tailored insurance rather than broad, rigid products. Furthermore, consumer behaviour changed dramatically during the pandemic, and the type of coverage people are seeking continues to change. To ensure that an insurance provider keeps up with the competition, they must find new, innovative ways to target niche customers based on their interests and demographic data. 

The Digital Insurance Consumer Continues to Evolve

Insurtech companies were created to meet various consumer pain points, including the perception that traditional insurance companies did not value loyalty, lacked good consumer engagement, and failed to provide what consumers saw as reasonable prices. 

In response, all insurers, regardless of their area of expertise, must pivot their services to meet the digital consumer’s needs. By building loyalty using first-party consumer data, offering seamless experiences and staying updated with the latest digital marketing trends to connect with the relevant audiences, insurance providers can provide consumers with a service they will truly value. 

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