MAPFRE
Madrid 2,56 EUR -0,01 (-0,23 %)
Madrid 2,56 EUR -0,01 (-0,23 %)
INSURANCE| 2021.07.20

Insurance embarks on a journey of personalization to deliver greater value to the client

Marta Villalba

Mónica García Cristóbal

Group Head of Digital Business at MAPFRE

 

The biggest challenge for insurance—and for any company nowadays—is managing to hyperpersonalize every stage of the client journey, whether that be online or offline. From attracting clients and offering them the best product, through to guaranteeing quality and individualized service, and striving to enhance customer loyalty in order to maintain the journey for any future need that may arise.

Whereas the previous strategy prioritized price, now is a time of increasing focus on hyperpersonalized service and journeys.

The following processes are therefore key:

  • Comprehensively collecting interaction and transactional data, in accordance with current legislation (integrated consent management), with a consolidated view of the client.
  • Designing and executing real, high-value proposals for clients that showcase the benefits of sharing data, i.e. less effort, more advantages and better service.
  • Breaking down silo mentality internally (marketing, sales, clients, operations, technical area, etc.), externally (broker and agent networks, agreements, service providers, etc.) and across channels (online and offline). Having a single view of the client in all company interactions, which will be automatically managed in an organized manner.

This is the only way that we can aspire to build close and excellent relationships with our clients, meeting their needs proactively—when requested—and anticipating their future needs based on their profile and the previous times they got in touch.

 

Impact of technology 

Technology has changed the expectations and behaviors of those who place their trust in us due to its impact on a vast array of areas in their lives.

If we take Netflix as an example, a content platform where no two home pages are the same, the hyperpersonalization of insurance means interacting with our clients in real time. Clients need to be offered the right product at the right time and through the right channel.

To do this, the following is needed:

      • Data—captured by artificial intelligence, machine learning, telematics, IoT, etc.—to know clients inside out.
      • Ability to leverage this information to generate offers that may be of interest to clients.
      • Omnichannel: so the journey is seamless and can switch between the various channels available, with the information being fully integrated.

In addition to this, agility, convenience, simplicity and ease of understanding, transparency, and real-time responsiveness (within a few clicks of any request) are required.

These trends undoubtedly impact the business model of insurance companies like MAPFRE, which are committed to:

      • Designing value propositions for audiences with different needs;
      • Personalizing the client journey through data and analytics;
      • Empowering clients with greater willingness to use remote/digital channels;
      • Encouraging connecting and bonding with people, beyond the insurance offered.

Reverse personalization

While the traditional approach saw the industry providing customization based on what companies could offer to clients, there will be a move toward what is known as reverse personalization. This involves clients defining their insurance needs, the level of coverage wanted (i.e. low, medium or high) and how much they can or are willing to pay for it. This will allow the company to comprehensively customize the product and its value proposition, adapting it to clients’ real needs. It puts people at the center — people who will probably value the product more highly and perceive it better.

In a particularly complex line such as Automobiles, where there are more limitations, ways are opening up to put things into operation, introducing on/off features in insurance, pay-per-use, temporary subscriptions, etc. This is undoubtedly where data has an added value: If clients provide these data, the company can provide a personalized product; without the data, only standard products can be proposed. For the clients we know best, custom coverage and products can be created.

This journey to hyperpersonalization is even more necessary with today’s consumption habits; people only expect what they need and where they are, things that are adapted to them and their circumstances and that can be acquired quickly and easily. The most visionary and forward-looking insurers will, like MAPFRE, be able to manage and take action under those conditions.