The essential guide to personalisation in the Insurance Industry

The UK’s insurance industry is not only the largest in Europe, but also the fourth largest in the world. With an impressive total premium income of $282 billion in 2017 alone, you’d be forgiven for thinking that the industry is flourishing.

Income

However, it in fact stands on the edge of considerable change. A challenging market alongside political and regulatory conditions have heavily influenced the UK’s position in the financial and insurance sectors; negatively affecting overall growth in recent years. 

Inflation

Digital disruption is also posing an immediate threat to many businesses. No longer a vision of the distant future, data, AI and automation are very apparent today. And yet to be embraced by many businesses in the industry.

And of course we can’t forget the all-important consumer. Fast-changing consumer demands coupled with a surge of new and exciting tech companies has brought about a whole new set of issues for the industry. To quote Deloitte:

 “In an age of immediacy, constant change and overwhelming choice, where loyalty is no longer a given, the industry has to extend beyond its core products and services if it is to retain its customer base.”

But with change comes great opportunity, and there are certainly lots for the insurance industry. At Pure360 we believe that personalisation is key to making the most of these.

This guide takes you through the challenges and objectives that the UK insurance industry should be focusing on today. And introduces the strategies and tactics that can help insurers smash them. 

For the UK insurance industry, better starts here.

What’s inside this guide:-

Challenges

It’s clear that there are significant challenges in the insurance industry. Before insurers can tackle these, it’s important that they fully understand what they are facing. 

Competition

The UK insurance industry is fiercely competitive as standard. But to add to this, there has been a surge in FinTech and InsurTech startups that are launching innovative new products and making it easier than ever for consumers to buy insurance. 

In fact, research has shown that 75 percent of incumbent insurers believe “the biggest impact to the industry will come from building new products in order to address the changing needs of the customer”.

With such intense competition, the insurance industry has the significant challenge of both customer acquisition and retention. Not an easy feat.

Digital disruption

The industry may be at the forefront of developing new products to match consumer needs. But while the UK consumer is embracing digital change in their everyday life and buying habits, the industry remains behind the curve within technology.

Having existed in one form or another for hundreds, if not thousands of years, insurers know how they like to operate and are cautious about change.

However, insurers need to move quickly to create truly digital organisations that compete in a market that is rapidly transforming.

Changing customer demands

Customers are not only used to immediacy, personalisation and interaction. They now demand it.  

Notably, the digital-native Gen Z alongside the tech-adopting millennials have been causing some significant shifts. And as Gen Z alone were expected to account for roughly 40% of all consumers by 2020, the insurance industry needs to adapt their proposition to meet their demands.

These demands frequently include:

  • Increased interaction via multiple channels, notably digital
  • A seamless, integrated and personalised experience across multiple channels
  • Increased preference towards FinTech and InsurTech providers, as well as other ‘non-traditional’ providers. 

Financial pressures

In recent years, the financial environment within the UK insurance industry has been challenging. Competition for repeat business has forced a downward pressure on rates and changing regulation has resulted in increased costs. All of this alongside the economic uncertainty of Brexit. 

To combat this, the insurance industry is looking to ‘trim that fat’ on unnecessary processes, bloated legacy systems, and generally save costs wherever possible.

Objectives

To overcome these challenges, the insurance industry needs to take a fresh look at their objectives. Updating them for the new and ever-changing face of the UK. 

Here are some of our suggestions.

Increase acquisition

Increased competition from both traditional insurers, FinTech and InsurTech, alongside ‘non-traditional’ providers, means that acquiring customers is more difficult than ever.

Insurers who previously had a solid lead generation and acquisition strategy need to review their tactics with new challenges and audiences in mind. One of their top objectives should be to ensure a steady stream of new customers in the coming years. 

Boost loyalty

Loyal customers have a huge financial impact on businesses.

70% of businesses say it’s cheaper to retain customers than to bring on new ones. They cost less to serve, buy more products through cross selling, and will remain in the relationship longer. 

In fact, within the insurance industry, loyal customers have a lifetime value that’s nearly seven times higher than those that report negative attitudes toward their insurers. 

High competition and changing behaviour means that insurers need to check in with their customer base to ensure they remain engaged, and aren’t looking elsewhere. 

Reduce costs

Saving money may seem an obvious objective for any business. 

However, the insurance industry has faced significant cost challenges in recent years. A difficult market alongside political and regulatory conditions, coupled with slow implementation of cost saving technology, has resulted in unsustainably high costs. 

Therefore, insurers need to make step-change reductions to their expense ratios; implementing cost saving processes where possible. 

Embrace technology

In a period of rapid technological change, it’s essential that insurers embrace the latest digital trends. The alternative is being left behind in the wake of digital-savvy providers and ever-increasing tech startups. 

For larger insurers, embracing technology and therefore change can be a large-scale project. It is essential that they get to grips with change management and implementation of new technology. Fast. 

Email and web personalisation

We are in an age where demand for insurance has remained fairly stagnant. And consumers are heavily influencing how their providers are meeting their needs.

But these challenges also create the opportunity for insurers to enhance their relevance and value by engaging more frequently, with more personalised services.

And it’s not as difficult as it might sound.

Data insight

Prospect and customer data enables insurers to create a holistic view of their customer which can be utilised across multiple departments and channels. 

Combine data sources

Separate business systems are a thing of the past. By combining all prospect and customer data into one accessible place, insurers can begin their journey to delivering the most personalised communications and targeted campaigns. 

Data analytics

Once all data is collated, insurers can really start to build a view of who their customers actually are. They will be able to identify their ideal customer and those who are most likely to convert. As well as creating specific segments to automate highly targeted and personalised campaigns based on behaviour, preferences and previous activity. 

RFM modelling and reporting

With all of their data in one place, insurers can also conduct RFM (recency, frequency, monetary) modelling and analysis. This helps them to identify the customers who are most likely to churn. With this segment they can use different tactics to drive engagement and deliver the right offers to the right people at the right time.

Email automation

Globally, 44% of customers have had no interactions with their insurers in the last 18 months. With high competition and questionable levels of customer loyalty, keeping audiences engaged can be tricky. 

Luckily, email automation can make this process a breeze.

Product recommendations

Insurers can make the most of behavioural data by serving website visitors personalised product recommendations based on previous browsing and purchasing behaviour. Systems that offer recommendation engine analyses can review purchase history, real-time behaviour, and purchase intent to ensure the right products are shown to each customer.

Quote abandonment

Over 70% of people abandon forms, meaning businesses are losing valuable prospects at the very first stage. Within the insurance industry, most renewals are completed within 8 days of the initial quote. This means timing is essential

Quote abandonment can be tackled with email abandonment series’, personalised with content according to customers’ specific taste profiles. Insurers can also personalise abandonment emails with both behavioural and demographic data, for that extra nudge to convert.

Segmented nurturing campaigns

Personalised segmented nurture campaigns can help insurers build a relationship with potential customers by keeping them warm until they’re ready to convert.

Insurers can identify what’s important to different segments, then showcase relevant benefits and promotions to stop the customer drifting to a competitor.

Renewal reminders

Insurers can remove the friction involved in lengthy renewal processes by using the data that they hold on their customers. They can make it quick and easy for customers to seamlessly renew through reminder emails that include all the necessary and relevant information the customer requires. 

Website personalisation

Every website visitor is different. Yet most businesses offer the same, one-size-fits-all website experience. Insurers can offer each unique visitor the unique experience that they not only deserve, but they now expect. 

Machine learning

Systems which use machine-learning can analyse and predict what makes customers buy. This allows insurers to automatically optimise their website experience, in real-time, to drive each visitor to conversion.

Product recommendations

Recommendation engines will analyse s purchase history, real-time behaviour, and purchase intent to showcase the right products are shown to each customer, at the right time. 

Insurers can even segment their recommendations based on customer life cycle stage, for added relevancy. 

Dynamic content

Insurers can greet each customer with personalised website content based on the data they hold on them. This can include demographics, location, purchase history, and lifecycle stage.

The possibilities for tailored content are endless!

Personalisation examples

Following expert advice, like within this guide, is the first step in implementing a successful personalisation strategy. But sometimes it helps to see it in action.

Here are some of our top picks of insurance providers that are doing personalisation well. 

Homelyfe 

UK startup Homelyfe aims to provide a streamlined home insurance experience that gets customers a quote in minutes. The team has built the entire tech stack from scratch, with its own rating engine and broker emulating system that pulls third party data to find out as much about the user as possible. Without having to ask a hundred questions. Easy!

Homelyfe

PolicyBee

PolicyBee gets the basics right when it comes to email campaigns.

As soon as you apply for a quote you are greeted with a series of bold, friendly and personalised emails.

They utilise a range of tactics, including simple personalisation, useful content and even a countdown email to add a little pressure.

PolicyBee

PolicyBee Reminder

Studio Franchini & Associati 

Italian insurance provider Studio Franchini & Associati were struggling with the demand for post-sales support. Many of these tasks were time-consuming but could be automated.

They introduced Miranda, an automated chatbot. This innovative chatbot offers visitors a personalised experience by directing them to the most relevant content to address their specific queries and challenges.

Miranda

 

GetDinghy

GetDinghy are great at building customer relationships.

One of their tactics is to offer customers a free promotional page that freelancers and small businesses can send to clients to prove their insurance protection.

Not only is this genuinely useful for the customer. But it is also a clever way for GetDingy to subtly promote their own services.

Dinghy

Checklist – 10 steps to personalisation

High competition, digital disruption, changing customer demands and financial pressures are making the UK insurance industry a difficult market to navigate.

To help insurers succeed, we have put together a checklist of our 10 steps to personalisation. Tailored specifically to the insurance industry.

Improve acquisition. Boost loyalty. Save on costs. And embrace innovation.

Step 1. Combine data sources

Multiple data sources are a thing of the past. Start by combining all of your prospect and customer data sources into one place.

Step 2: Understand your data

Build a view of your audience through data analytics and RFM modelling. Identify those who are most likely to convert or churn.

Step 3: Implement an AI marketing platform

By implementing an industry-leading AI marketing platform you can make the most out of your data to automate highly targeted and personalised campaigns.

Step 4: Improve acquisition through email

Automate product recommendation and quote abandonment emails to keep your prospects interested and give them that final ‘nudge’ to buy.

Step 5: Improve retention through email

For current customers, automate nurturing campaigns and renewal reminders to keep them engaged and ensure you’re at the front of their mind come renewal-time.

Step 6: Utilise website personalisation tools

Every good AI marketing platform comes with a host of website personalisation tools. Use your data to offer a highly personalised website experience to both prospects and customers.

Step 7: Improve acquisition through your website

Offer personalised product recommendations directly on your website to guide prospects and make buying even easier.

Step 8: Improve retention through your website

For current customers, keep them engaged and make them feel like a VIP with personalised, dynamic website content that serves the information they really want to see.

Step 9: Analyse results

Dive into the insight offered in your AI marketing platform to review engagement levels and ROI. Identify what is working. And what isn’t.

Step 10: Rinse. Repeat.

Personalisation isn’t a one-off campaign or singular automation series. To keep prospects and customers engaged, learn from your results and continue to tweak, build and innovate your most successful personalisation campaigns and tactics.

We hope you enjoyed this guide and found the tactics useful. We would love to show you a live demonstration of our all-in-one AI Marketing Platform and how we can help your insurance business prosper. Book a live demonstration today.

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