Insurance customers increasingly expect to be rewarded for risk-averse behavior that fosters the prevention of incidents and claims – think personal fitness trackers that increase well-being and lower health insurance costs, or telematics devices that track auto driver miles and rewards customers for reduced exposure to risk.
Industries like Telco and Utilities have led the way, already implementing activity-based pricing to reward behavior that drives desired outcomes. Now the same kind of activity-based pricing is being implemented in the insurance industry. Educated insurance consumers make decisions on who to insure with based on the availability of these offers.
“Educated insurance consumers” is the key phrase here. In the digital era, without personal ties to their trusted local insurance agents, customers seek their own economies. Armed with the internet, customers with just a few keystrokes can quickly compare competitor rates, ask their friends for recommendations, or read online comparisons and reviews.
What’s more, they can do it through multiple devices and now, the customer—not the insurer—holds the power. Projections of how customer preferences for online interaction, at every stage of the customer journey, show that it’s imperative that insurers upgrade the functionality of their online commerce experience.
So what would those upgrades look like? I expect that would include a 360-degree view of the customer, providing insights into real-time customer intent, enabling insurers to deliver contextually-relevant offers and services.
Discover the global impact of COVID-19 on the insurance industry HERE.
By Stefan Müller
Director for Insurance in the Financial Services Industries, SAP Hybris