The customer will buy a total risk management solution that flexes to her needs month by month, day by day, hour by hour.
This is the sixth in a series. The other parts can be found here.
The Insurer of the Future
's customer won't have to buy individual products. Instead, she'll buy a total risk management solution that flexes to her needs month-by-month, day-by-day and hour-by-hour. She'll be billed according to her actual usage, so she'll never be under- or over-insured.
When the Insurer of the Future
's customer leaves her house, the accidental damage element of her home cover will decrease — because she's no longer there to damage anything. But her flood and fire cover will go up, as she's less likely to spot such events early.
If she buys a TV, her insurer will know that and will add it to her policy. The insurer will also ask what's happening to the old one and will remove it if no longer relevant.
If the customer goes hiking in the wilderness, the Insurer of the Future
will pick that up and increase her life cover. If her hiking is abroad, travel covers will kick in automatically. And once the customer is back home safely, her cover, and her premium, will go back down.
See also: A New Way to Develop Products
Once the Insurer of the Future
has earned its customer's trust, she might choose to open up her current and future search history and social media accounts to its systems. That way, the Insurer of the Future
can monitor what she's thinking about doing (bungee jumping, getting married, having a baby?) and step in with timely advice and support.
Some of the Insurer of the Future
's older employees remember when “customer lifetime events” were the elusive holy grail.
Not any more — now, the insurer knows about all of these events, often before they even happen.