November 6, 2017
The Insurer of the Future – Part 5
by Alan Walker
CRM was always a challenge in the past because insurers had only small numbers of interactions with their end customers.
The previous articles in this series can be found here.
The Insurer of the Future will be class-leading in customer relationship management (CRM) and marketing.
CRM was always a challenge in the past because, unlike banks and retailers, insurers had only small numbers of interactions with their end customers. That made it hard to gather data on the customers’ needs and wants, and limited the ability to build relationships.
See also: The New Agent-Customer Relationship
But the Insurer of the Future has access to enormous quantities of data about its customers, available from a wide range of external sources. So it ports this data into its own systems, fueling more powerful and accurate analytics. It uses the insights gleaned to reach out to customers — not just to sell them products but to provide genuine value-adds.
Providing value adds to customers, free of charge, enhances customer relationships. So when the Insurer of the Future makes an occasional offer to a customer, it’s the right offer, at the right time, through the channel and device of the customer’s choice. As a result of the Insurer of the Future’s expertise, the customer is significantly more likely to buy.
Compared with its predecessors, the Insurer of the Future has a loyal customer base — driving lower lapse/churn rates, a greater share of wallet and higher Net Promoter Scores.