The relationship between the insured and the insurance company isn’t just business — it’s also personal. It’s important for insurance companies to be there when customers need them the most, but, over the past decade, “there” has been redefined, and too many insurance companies haven’t adjusted.
Consumers today communicate on a variety of platforms, including: online, mobile, email and social media. Insurance company leaders who want to gain a competitive advantage must monitor shifting communication patterns and adjust their outreach strategies so they can be where their customers are.
Insurance companies need data — both large and small. Big data has become an increasingly central component of modern business operations across all sectors, including the insurance industry. But insurance company leaders who want to implement a visionary approach and build a closer relationship with customers should think beyond the typical use cases, such as using big data to detect fraud. They need to consider “small data,” too — such as using social media and SMS contact information to build relationships.
That’s a tall order for insurance companies, which typically don’t have that type of contact information in customer files and often struggle to maintain accurate phone numbers and addresses because many insurers only interact with customers when it’s time to process a claim or add a family member to a policy. But to truly modernize their approach to customer service, and make it more immediate and personal, insurance companies have to bridge the information gap, clean up existing data and secure the additional contact information they’ll need to reach customers where they are.
Insurers will also need to ask customers about their communication preferences and obtain consent for future contact early in the customer journey and relationship lifecycle — or as soon as possible for their existing customer base. Insurers can analyze the communication channels available to customers and ask customers which platforms they prefer, then abide by the customers’ stated preferences. In this way, insurers are implicitly demonstrating that they respect their customers.
But following this strategy is much more than just a sign of respect or a signal that the company is tech-savvy. It opens up possibilities for relationship-building through technology. For example by using a secure, compliant platform that integrates data from multiple sources — and automates messaging via voice, text or email — insurance companies can engage in proactive communication, such as sending out alerts when a weather event threatens a customer’s area. And by integrating data from connected home products, like sensors in smoke detectors and appliances that connect to the Internet of Things (IoT), insurers can communicate with customers and their preferred providers to alert them of issues, as they arise, reducing property damage.
A personalized approach like this not only reduces risk for both insurer and insured, it builds trust. As insurers create new lines of communication with customers, insurers can become an important part of the customer’s support network — truly looking out for the customer.
The technology to make it happen exists today. All it takes to put data to work for a higher purpose is the vision to change the way the company communicates and make it more immediate and human. Because with insurance, it’s not just business — it’s personal.