For a long time insurers have had difficulty in providing exceptional customer experience mainly because of the lack of interactions. This is generally because communications were typically reactive in this space. After the sale, the agent usually waits for details from their customers such as location changes, medical records, etc. The insurer now has an opportunity to make a pivot with the use of technology and IoT solutions to be more proactive and provide more enriched customer engagements. We will explore these possibilities and point out how insurance companies can be more proactive through these types of solutions.
The reality is that today’s Insurance space IoT and their solutions like telematics are starting to become the norm but how do these solutions affect the consumers and insurance companies? For the consumers, this becomes more beneficial since the solutions provide more personalized rates based on their needs and how they operate in their daily activities. Because of the data that insurers are able to gain for these individuals it reduces the risk on their end and allows for more accuracy when providing pricing and underwriting. Beyond this, the insurance companies can analyze an individual’s driving behaviors and recommend adjustments to reduce risk and improve driving behaviors.
Outside of automotive and telematics insurance providers can be part of their customer’s fitness behaviors when it comes to personal and health insurance. Wearable technology especially in the fitness place is increasingly popular even cell phones have applications built in to help monitor individuals fitness levels. Insurance companies can use this to try to gamify activity levels and tie them into insurance rates to encourage healthy behavior. If they wish they can allow connectivity and share peer interactions to provide the social aspect to allow for peer motivation. In fact, this is how many solutions are being created these days to drive social connections outside of the insurance space. Furthermore from a corporate policy standpoint agents dealing with corporate accounts can better suggest the correct plans based on aggregated data of their employees.
The insurer now has an opportunity to make a pivot with the use of technology and IoT solutions to be more proactive.
We can create a portal/platform solution that allows consumers to track their behavior and how it correlates with their rates. Agents would be able to be more proactive and use the data to possibly provide more personalized content to their customers. For example, if they notice their customer is active they can recommend nearby parks that are frequented with high ratings. These interactions do not have to be limited to client insurance but it can allow more touchpoints outside of policy interactions and allow them to provide additional value. These value adds can create more stickiness and ideally reduce the attrition that is common in a highly price-sensitive industry.