How to retain customers online? Insurance 4.0 is already a reality. The latest survey of Big Data Analytics & Business Intelligence from the School Management at the Politecnico di Milano found that, while other sectors are more “interested” in analytics, insurance has the highest growth rates, at 25%. This is a sign of a vitality that sees the progressive expansion of the use of Big Data as a lever to strengthen insurance, especially in terms of creating a personalized or tailor-made customer experience. In this post, we’ll look at how to retain customers online in the world of Insurance 4.0.


Digital transformation and customer acquisition

With Insurance 4.0, acquiring new customers is easier for insurers. This is demonstrated by the proliferation of new, internet-based companies that have few local physical branches or none at all.

The emergence of cloud computing and the ability to handle huge amounts of data (Big Data) has made available a wealth of knowledge available to insurance companies that they never had before. This makes it possible to trace the buyer’s journey of consumers through their interactions with the brand. Especially since it is Millennials, (which constitute an audience of around 13 million people in Italy), who prefer the web (76% are permanently connected) to discover and choose the product most suited to them. They are also more likely to give up their data in exchange for services such as newsletter subscriptions, downloads of information material, requests for quotes, etc.


Flexibility + customization = engagement

How to retain customers online? In the light of the above, the road to engagement must include flexibility and personalization.

With Insurance 4.0, more insurance companies are offering their third-party auto liability customers ongoing support based on sophisticated technologies that combine telemetry systems, such as a ‘black box’ device, with a contact center that can be reached 24 hours a day, 7 days a week. They even encourage their use by proposing cheaper plans precisely because of the greater control that these devices provide. In addition to monitoring position and speed, the black boxes accumulate data on our habits at the wheel and help to profile us based on how we actually drive, rather than on generalized statistics.

Until we fit in predictive diagrams that calculate our risk potential risk, the insurance company bears having us as customers. From this comes a proposal for a policy that, year after year (with the goal of customer loyalty), becomes more and more precise: flexible, because it does not apply mass standards; personalized, because it is based on our actual record (How many accidents? What is our average speed? On what kind of roads do we usually travel? What is the level of wear on the mechanical components of the cars we drive?


How to cultivate the customer experience

All this information should not lead to the error of cataloguing the insured in fixed schemes but should serve to provide the foundation for cultivating a stable relationship based on their needs. In short, the customer experience that is built before, during, and after the conclusion of the contract is at stake.

To retain a customer online, therefore, requires a regular presence in the customer’s life, perhaps by sending an email that reminds him of deadlines or that simply keeps him updated on policy or other changes that affect him. Even better so if the email also contains an engaging video with their personal data and his or her policy situation. Rather than only contacting the insured when it is time to collect, you should convey the message that the policy is an important tool whose value lies in the care and protection that is available. In doing so, it’s important to remember that digitization has opened up new frontiers in marketing automation that also allow Insurance 4.0 to manage the relationship with advanced tools (designed for systematic and recurrent programming of ad hoc communications).


Insurance 4.0: Where claims can also increase customer loyalty

In the age of Insurance 4.0, loyalty may also be achieved through claims. In the past, damages would be assessed in person by adjustors, and there were many forms to fill in and return. Today, customers can simply share photos and videos with their insurance company in real time and through automated chatbots.  This reduces the waiting period and reduces the workload of claims processors, and the information provided by the customer is cross-checked with the data extracted from the black box or other similar devices, to ensure accuracy and protect against fraud. (see, for example, black box) in order to avoid potential fraudulent actions.

This represents the initial filter for speeding up the process. Automation of the claims process is becoming a distinctive element of competitive advantage. A satisfied customer will stay with the company that has saved him time and that has proven quickly resolve his problem. This is how companies inspire loyalty over time.


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