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The opportunity insurers could be overlooking

The opportunity insurers could be overlooking | Insurance Business

The opportunity insurers could be overlooking

A new survey by customer benefits and loyalty firm Collinson shows insurers could be missing out when it comes to building brand retention, and it all boils down to communication.

Collinson found that 73% are interested in receiving targeted product and benefits recommendations from their insurance providers, but only 46% hear from them on a frequent basis. Also, 50% of respondents believe they would view their insurer more positively if they were offered privileges in addition to the core product.

“Insurance has traditionally been a low-contact industry, and the situation has only worsened following the implementation of GDPR (General Data Protection Regulation) in May 2018, when many providers saw their customer lists shrink,” noted Collinson. “According to the survey, over one third (36%) of respondents are not aware if they have provided the necessary opt-in to receive updates from their provider.

“Perhaps underestimating their appetite for communication, or misunderstanding their motivation for opting out, insurers have begun to shy away even further from reaching out to customers. Respondents said their exchanges were mostly limited to transactional matters like renewals notices (79%); policy updates (67%); and terms and conditions amendments (37%), leading to disinterest and disengagement from consumers.”

The customer experience expert added: “Consumers are open to receiving more useful information from their insurance providers about products and services, as well as the benefits they currently have access to but may not be making use of. Of those who opted out post-GDPR, 35% said they did so without knowing they were missing out on these updates, and – more importantly – of which half (51%) said they would not have opted out had they known.”

In Collinson’s view, this presents an opportunity for insurance companies to raise awareness about the options available to their customers and why opting in is beneficial.

“There is a clear desire from consumers for better targeting and tailored experiences, but insurers need to help their customers feel comfortable handing over the data that is needed to create them,” said Collinson insurance head  Lawrence Watts.

“Insurance providers need to demonstrate the value of more regular and personalised communication in order to gain their customers’ trust. Those who succeed will be able to develop a relationship with their customers beyond that of a service provider, to that of a trusted partner.”