Mounting competition and soaring customer expectations are turning the ability to deliver personalised messages, offers, and experiences at scale into more than just an unprecedented opportunity for P&C insurers. It could soon become a strategic imperative for any carrier seeking to gain a significant share over rivals.
In recent years, across far more than just the InsurTech space, we have seen a seismic shift toward digital channels. Users now requires more tender, love and care in this modern climate, meaning that consumers are now expecting a high-level of personalisation from every company in every industry—including P&C insurance.
So much so, that they actually demand it. According to McKinsey, more than 7 in 10 consumers now expect personalization as a standard feature when interacting with every company, and nearly 76% get frustrated when it’s not. The payoff from personalization can also be huge. Companies that excel in personalisation can boost revenues by 10-15%—with best-in-class performers achieving increases of up to 25%.
While industries outside of P&c insurers may have led this charge, it is now up to the businesses in the industry to catch up with the times if they are to maintain relevant in a hyper-competitive market.
Implementing these solutions that deliver personalised messages to customers—policy recommendations, tailored coverage options, and all the associated policy documentation—can seem daunting to many insurers.
Especially when you consider this level of personalisation spans call centers, emails, in-app offers, text messages, and more across human and digital channels at every point in the customer journey.
But are these sweeping changes worth it? Should P&C insurers just bite the bullet? What is there to gain from introducing such a system?
Firstly, personalisation can help cut customer acquisition costs by 50% relative to the continued use of mass, one-size-fits-all communications or discrete campaigns using basic segmentation or personas.
It can also help insurers protect and increase their share of existing industry revenues. In McKinsey’s view, for instance, U.S. auto insurers could reap an additional $5.5bn if they leverage personalisation to retain just 10% of the $55bn in direct written premiums that switch from one carrier to another each year.
These clear cash flow advantages will certainly have carriers on the look out for change, mastering personalisation at scale over the full insurance life cycle, is the real challenge.
Carriers with a modern, cloud-based insurance platform have a built-in advantage in achieving this, without a bespoke system, you’re forced to toggle between disjointed systems—making true scalability impossible.
The Guidewire Cloud Platform, for example, delivers personalised, omni-channel customer communications across policy, billing, and claims processes.
Guidewire partners with industry-leading conversation management platform provider Smart Communications to enable tailored communications at unlimited scale.
This is all facilitated within a single, cloud-expandable platform—eliminating the need to manage disparate systems and ensuring unlimited scalability as storage, channels, and other requirements grow.
With the right solutions in place, P&C insurers can can see a rapid return on their investment if they wish to integrate a more personalised approach into their current systems. Solutions such as Guidewire have already helped carriers quickly and cost-effectively launch personalised communications at scale in more than 100 deployments worldwide—which means that the personalisation imperative isn’t just coming to P&C insurance. It’s already here.
Read the full article from Smart Communications here.
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Global
