Today’s top insurance marketing strategies rely on personalization

Research indicates that two out of five U.S. consumers switch brands due to a lack of personalization or trust.

Insurance organizations that fail to embrace personalized marketing practices may find they cannot compete in the very near future. (Photo: Sikov/Adobe Stock)

Three factors will dictate the future of insurance marketing: Targeted messaging, special offers and competitive pricing.

Today’s increasingly digitized insurance market makes it easier and more practical to gather, categorize and analyze data about insurance operations. Using insurtech tools such as artificial intelligence, machine learning and data analytics, insurance carriers can improve their underwriting processes, detect fraud and deliver personalized service. All of this goes a long way toward supporting and promoting marketing efforts.

What is personalized insurance, and why is it important/?

Personalized experiences and decisions are based on data to tailor them to all users involved in the insurance value chain. Here’s how insurers can use this approach to provide a custom experience that meets the expectations of their clients:

Personalization tactics

Customers whose insurance services are matched to their individual needs are more likely to respond to upselling and cross-selling. Research from Accenture shows that 41% of consumers in the U.S. switch brands due to a lack of personalization or trust.

Consumers are looking for brands that understand them and maximize technology to provide them with better products and services. Here are some of the areas that can provide personalization insights:

What are the benefits of personalized insurance?

The bottom line

Insuring consumers through personalized marketing is a uniquely effective way to increase retention rates and cross-sell new policies despite — and perhaps as a result of — disruption in the industry.

Insurance companies can start achieving positive results sooner and more effectively when they use analytics, customer data and strategic marketing systems, some of which are already in place.

Building an intentional strategy rooted in solid processes, adherence to best practices, and an eye toward the future is critical. Insurance organizations that fail to embrace such personalized practices may find they cannot compete in the very near future.

Alice Shi (alice.shi@finaeo.com) is a marketing lead generation specialist at Finaeo Inc. Any opinions expressed here are the author’s own. A previous version of this article first published at Finaeo.com and is republished here with the author’s permission.

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