Personal insurance lines are very sensitive to prices. As discussed earlier, Maintaining a 20+% cost -ratio It is not possible for insurers. Beyond pricing, what really promotes customer loyalty and how can insurers compete to increase their market share?
In this blog, I investigate strategies to improve loyalty and retain customers, provide forecasts for a developing risk landscape for car and home insurance and discuss Accenture forecasts on how personal insurance lines can be displaced over the next decade S
The changing landscape of personal lines of risk
Personal lines of insurance have developed from a specialized product to digital goods. Initially, it is manually traded, it has already become a global digital product. With about 4 billion vehicles and homes around the world, personal insurance is both global goods and a constantly developing risk.
The risk landscape varies greatly between car and home insurance. Automobile insurance covers a homogeneous risk profile with approximately 600 total vehicles worldwide. Increasing electric and autonomous vehicles converts the regulations of the road and the processes of repair of vehicles and introduces new risks requiring the responsibility of the product and cyber coatings.
On the contrary, home insurance covers a heterogeneous risk profile with countless types of homes and construction standards. The main home risk is significantly affected by extreme weather, which affects both the frequency and the severity of the damage. It is fair to predict that extreme weather will not only affect the valuation, but also the construction codes that would provide additional price variables.
While home and car insurance represent key areas for personal line insurance, consumers also deal with the impact of large-scale disturbances-a variable economic environment, the residual effects of the Covid-19 pandemic and the current technological revolution, all have shifted the global dynamics significantly. Today, the user of the user of the insurance is high and the areas of risk that have the most tribulative are shifted. We have found that increasing costs of life and climate change are two best areas where consumers feel concerned about the risks, but also the few protected.
Generations of changes to the purchase of insurance
The main users of insurance are changing. Millennials, the first generation of digital locals, enter their peak insurance years for buying. Insurers must take care of the unique needs of this demographic group. In all demographic data there is a demand for more, better and faster services. Users want their unique needs quickly and easily and are ready to share their data in exchange for a noticeably better experience and product.
Strategic areas to improve the value proposal
- Brand identity in customer interactions: Make sure that the brand identity is tangible at every client’s interaction, creating a consistent and recognizable brand experience at all points of contact.
- Ai-Avized Employees: Instead of focusing on applying AI solutions, focus on increasing employees with AI to provide more personalized and compassionate interactions, ensuring that customers feel deeply understood. This is a fine but critical nuance.
- Captivating digital experiences: Craft Digital experiences that encourage emotional connections. For example, in travel insurance, offering dynamic updates for extreme weather, top tourist attractions and local health consultations can significantly improve customer engagement. Traditional risk reduction notifications do not promote emotional relationships with the client.
- Real benefits to digital acceptance: Make sure customers recognize tangible benefits of accepting digital channels, such as significantly faster resolution times and personalized digital interactions, which makes digital change useful.
Creating compelling digital experiences for customers is crucial for improving customer loyalty. We recently worked with an insurer to deal with low engagement between agents and clients, insufficient customer information and lack of visibility to manage potential customers. The insurer and Accenture have deployed the AI activated AI app; The app was incredibly intuitive and built with the help of a scalable design for the market in Asia. The solution offers automated customer relationship management, marketing recommendations, next best action recommendations, customer information, 360 degrees of customer insights and the agent’s performance management management.
The results? 424% increase in premiums and 671% pipeline proving that captivating digital experiences cost their weight in gold.
Changes in the purchase of users
Traditional methods of buying insurance through brokers and agents are expected to reduce in favor of direct sales and built -in insurance models. Munich said the built -in insurance is expected to increase at CAGR from 25% to 2030, which potentially represents over $ 500 billion in gross written premiums worldwide by 2030 for P&C lines.
Consumers are increasingly interested in built -in insurance offers, where the respective risk protection is integrated into their purchase. For example, the share of consumers who are likely to buy car insurance from a car dealer has increased from 32% to 42% from 2018. Consumers also want solutions outside of traditional residential and car insurance, such as complete services for the purchase of houses and services For home monitoring.
Focused areas for insurers
- Performance and efficiency: Develop the best features and products.
- Experience and convenience: Slow customers with exceptional service.
- Solving, not sold: Play the right role in customers’ lives while creating value for everyone.
With the development of the insurance landscape, we must continue to use the power of AI to turn challenges into opportunities. By empowering AI-Managed Solutions business, we don’t just create tools-we make opportunities a measurable success. In this journey of innovation, we redefine what is possible, ensuring that the future of insurance is not expected simply – it is actively formed.