Insurance is feeling impersonal while customers search for connection over coverage
Imagine the scenario a decade back, buying insurance was a safety task, with the customer sitting across a desk from an insurance agent with stacks of forms and a hopeful promise that said, ‘We will get back to you shortly’.
Today that moment of truth is happening on multiple online insurance distribution platforms- from WhatsApp to a chatbot on a banking app, customers are everywhere and so is insurance. With this personalized online presence, insurance distribution shouldn’t feel impersonal or like a random product pitch. But there is a catch that insurers are missing- being everywhere is not just enough but being relevant everywhere is. Connection over coverage!
Omnichannel Intelligence is the Norm
Connection over coverage is not just a catchy phrase but a reality. A recent report from Deloitte has highlighted that a significant number of insurers are actively embracing hybrid distribution models, which include a combination of digital channels with personalized advisory services through agents or intermediaries.
Now, this raises one important question- What’s Next?
While insurers globally are aggressively moving towards ticking the “omnichannel” checkbox- through apps, call centers, and embedded journeys, only a few have managed to crack open the next which is- seamlessly orchestrating hyper-personalized, intelligent journeys at scale across these channels.
While the necessity to offer an omnichannel customer experience is rapidly pacing, it’s important to understand that having ten channels does not mean much if every customer is met with the same message.
A hyper-personalized distribution is all about replacing static touchpoints with dynamic micro experiences. These experiences address the customer itself- who they are, what their needs are, and what they are most likely to act upon.
While fast-paced insurance distribution experiences are shaping the industry, old technology platforms still hold a significant chunk of insurers behind.
60% of insurers globally are using legacy systems, do you think adaptability is a language that these systems will be successful in translating as the market is taking a transformative spin towards omnichannel experience?
It’s Time to Go Forward Not Remain Behind
Legacy systems are doing more harm than good, while the comfort of a technology that has lasted over a longer period of time might look promising, its long-term impact, especially adaptability, can be quite challenging.
Today, customers don’t expect to move linearly; their journeys are often fragmented, spontaneous, and invisible to traditional CRMs. Take a look at how traditional models fall short:
Siloed Channels – an email campaign you might launch will not be visible on the mobile app.
Lack of Real-Time Comfort- today, interactions need to be real and comforting not static and machine-like
Product- First Thinking- Campaigns help in pushing policies, not solutions
While these technical factors remain a crucial part of the insurance distribution landscape, getting a practical understanding of hyper-personalized distribution can bring a significant difference.
Hyper-personalization from the Lens of a Real Story
Imagine this, one of the potential customers Ravi, is casually browsing for a secondhand car online, while also looking up for loan options on a fintech app. He instantly comes across a context-aware insurance quote that is pre-filled, customized as per his profile details, and also caters to his financial plan. Additionally, he gets a follow-up on his WhatsApp with a reminder, and when he clicks through, a live insurance agent is already ready to guide him further.
All of this? With an omnichannel, personalized experience powered by an intelligent insurance distribution platform. This is exactly how connection over coverage looks.
Post-pandemic, the insurance industry has taken a 360-degree spin, and insurance distribution is no longer about access; it’s all about precision at scale. The urgency and the necessity of a hyper-personalized insurance experience are real, and a recent Bain and Co. report says that insurers who lead personalization significantly outperform laggards by 25% in customer retention.
So, are you just selling policy or connecting with the customer’s needs?
