A Quick Look at Hyper-Personalization in the Insurance Industry

A Hyper-Personalization in the Insurance Industry

Personalization is important for insurance companies to improve their customer service, retain existing customers and acquire new ones. In the modern world, the extent of personalization is reaching new levels leading to hyper-personalization products and services. It is true for all industries and the insurance industry is no exception.

In the current market scenario, customers reject products and services if it is not completely directed at them and their individual expectations. With the help of available data owing to the increasing number of advertising and marketing efforts, insurance companies are able to dig deeper and connect better with their customers.

Hyper-Personalization – An Overview

Personalization entails looking closer at the subject, that is the consumers and understanding what exactly they need. Then, delivering a product/ service that caters to these specific needs.

For instance, customizing an insurance policy for a risk profile with low risk as opposed to building a similar policy with a very high-risk profile. The factors can vary from risk profile, monthly income, and assets among others.

Whereas hyper-personalization includes the usage of real-time data on a large scale and predictive analysis to retrieve better information thereby, enabling better products/services.

An example of hyper-personalization is it helps insurance providers identify and reduce the risk of fraud before it happens and allow space for the implementation of corrective measures in real-time.

A hyper-personalized approach will help in offering a customer policy based on a grounded reality and predictable changes. This not only benefits the customers. For insurance companies, it benefits them by enabling them to configure policies that are feasible as well as policies that are most likely to sell.

How Can Hyper-Personalization Help Insurance Companies?

Real-time data can help insurance companies by giving more, accurate information to configure policies that are just in line with customers’ needs. This is usually achieved by reacting to changes in behavior and predicting them ahead of time based on data with the help of algorithms. This can directly impact the way policies are configured and distributed.

A policy that is perfectly tailored to an individual will no doubt attract a significantly large number of customers. Plus, it will help in customer retention.

It enables insurance companies to gain and utilize insights about several factors related to customers. It includes their financial behaviour, the presence of health conditions, and others.

How Can Insurance Companies Achieve Hyper-Personalization?

Technology is the only way to create customized, hyper-personal policies.  With the help of InsurTech solutions and platforms, insurance companies can provide tailor-made insurance covers.

Insurance companies are paying attention to customer expectations, mainly around the customization of services. Around the world, insurance companies are partnering with InsurTechs and creating hugely successful personalized products.

InsurTechs are leveraging AI, automation, big data and analytics to create customized insurance plans for travel, health and others.

How Can Insurance Companies Get Started?

Enabling hyper-personalization involves adapting several practices and establishing new processes.

It starts with investing in the data asset. They should focus on generating and storing data to gather customer insights. It is important to note that, during data gathering, customer data is fluid. Therefore, there should be a proactive collection, management, and updating of data.

Insurance companies should also reorient the organization’s efforts towards the customer not the products. This means breaking away from the traditional approach and rethinking almost every element of business. The customer-centric approach begins with product development and ends in marketing efforts.

Final Takeaway

Many insurance companies are exploring hyper-personalization. To become a pioneer in this area, it is crucial to take on a data-driven, customer-centric outlook. This can not only help drive more customers in the short-term but ensure long-term value.

While adapting to changing customer behaviour, it is vital to have a platform that helps insurance companies stay ahead of the curve. Check out iNube’s APIsLive which enables new changes to the existing products and launching of new products in no time.

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