P&C insurers must bring the same level of personalization to their customer experiences as Amazon, experts say.
The stakes are high, as the carriers who get personalization right will be at the forefront of the customer experience, said Udi Ziv, CEO of Earnix, analytical rating, pricing, and personalization company. There’s significant evidence that customer experiences are key when it comes to attracting and retaining policyholders, as previously reported. “When I speak about personalization, what I mean is, can [a company] know what I need before I need it? Great retailers do it all the time. … Insurance is undergoing the same revolution, and it started before COVID, though the pandemic has accelerated the process big-time,” Ziv told P&C Specialist. “We’re seeing carriers start to respond to the fact that consumers want to be looked at as individuals with individual needs by offering rates and products that best meet those needs, that consumers can afford and in a manner that is smarter, faster and safer.”
Personalization has become the baseline of what consumers, especially millennials and Gen Z, expect. The goal of personalization is not only that a company knows exactly what its customers need, but when and how customers’ needs change. When might a policyholder need a new car? Will that policyholder need a high-net-worth homeowners option as he or she gets older? To move toward providing such highly personalized customer service, leading carriers have begun to pull executives from consumer-centric giants and pursue a range of technology-focused partnerships.