Client Stories

What Insurance Customers Really Want

Share this post:

My daughter’s roommate, Jan, recently had her car stolen from the parking lot of their apartment building.  They had just moved in!  Their new apartment is a short walk from their college campus and right across the street from a grocery store.  They thought the location was perfect.  They found out the hard way that it wasn’t.

But, what if Jan could have been spared the trauma of having her car stolen?  What if Jan’s auto insurer had been paying attention to her apartment hunt via social media?  What if her insurer had jumped into the conversation with stats on the safest places to rent an apartment and park her car?  What if the insurer had offered a discount to Jan’s premium if she had decided to rent an apartment in a building with secure parking?  It could have saved Jan a lot of heartache.  It could have saved her insurer a lot of money.  What’s more, it could have earned her insurer a zealous Brand advocate for life.

These days, it isn’t good enough for insurers to be responsive after bad things happen.  Today’s customers want more.  Of course, when bad things happen, policyholders want their insurer to jump in and compensate them as soon as possible.  But, today’s empowered insurance customers are realizing that they want their insurance partner to advise them on how to avoid bad things happening to them in the first place.

Let’s take a closer look at what policyholders really want from their insurance providers.

  1. Treat me as an individual.   Insurers, you need to know what’s going on in the life of your policyholder and offer products and services that anticipate and support that life experience.  Whether it is safeguarding exciting events like welcoming a new baby or buying a new car or mitigating challenges such as storm damage or a death in the family, always interact with relevant engagement.
  2. Give me a holistic experience across channels, at every stage of my journey.  Insurers, you need to create a productive customer experience, regardless of which channel a policyholder or prospective customer uses at any stage in their dialogue with you.  For example, never place your policyholder in a situation where they have to get your customer service agent up to speed even though they’ve already started a claims process online.  An IBM Institute for Business Value study revealed that 41% of policyholders switched their insurer when their needs changed and their insurer couldn’t keep up.
  3. Offer me immediacy.  Today’s policyholders want instant gratification.  They won’t restrict their research, their questions or their buying activities to between 9 am and 5 pm.  Many don’t want to talk to a person at all.  They’d rather discover the answers to their questions themselves.  If your website can’t provide answers, demonstrate how to’s, and offer products at any time, potential customers will move on to someone else’s website that will.  But, if you can meaningfully interact “on demand”, you have a good start at building a relationship that will eventually include selling insurance.

Connected policyholders are driving insurers into a brave new era.  But, traditional insurers are not consigned to failure – if they have the foresight and perseverance to evolve into the risk management partners that today’s empowered policyholders seek.

To walk through an example of an insurer meeting a millennial’s expectations, check out this SlideShare.  For more food for thought, please refer to the IBM IBV study entitled, “Capturing Hearts, Minds & Market Share”.

Global Cloud Leader, IBM Institute for Business Value

More Client Stories stories

Four ways to stem the growth of financial crime in insurance

Insurers have long understood that the ability to quickly detect fraudulent claims not only stems losses, but also minimizes the impact to legitimate customers as well. But as more complex financial crimes like money laundering, employee fraud, and corruption have gravitated toward insurers more recently, many don’t have the programs in place to combat these […]

Continue reading

Connect with IBM Insurance experts on social media

At IBM, we are fortunate to have a number of IBM Insurance experts who are active on social media and enthusiastically look forward to connecting with others in this realm. I encourage you to connect with the following insurance experts if you have a question or just want to follow the latest news and trends […]

Continue reading

Top Insights on Insurance blogs in 2018

We publish lots of insurance technology thought leadership content from both IBM and industry subject matter experts. Among all the new posts we published in 2018, here are the ones that got the most attention from readers like you.   6. Fighting insurance fraud with AI – An expert discussion Fraudulent claims in the insurance […]

Continue reading