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Uzone.id – Without trust, the insurance industry will not run. Consumers pay premiums, with the belief that if they file a claim, the insurance company will cover their losses based on previously agreed terms.
Consultancy EY underlines in its Global Insurance Outlook 2024, that trust plays a vital role for insurance companies to build customer loyalty and increase profits.
So, trust is essential for insurance companies to maintain relationships with their customers, and transparency plays a vital role in that, as we explain in detail in this post.
But what else should insurance companies think about as they develop their insurance marketing strategy this year? What other trends should they track and respond to?
“There are different types of risks now in our world, whether it’s cyber risk, which has claims and liabilities associated with it, or the effects of climate change, which is also introducing novel types of risks and opportunities for new products,” said Brett Maher, Principal in PwC’s Finance Transformation.
We’ve put together 9 things, including trust and transparency, that we think will be of concern to most insurance companies in 2024. Here are they are:
Rising Insurance Industry Trends
Statistics show that this industry is highly competitive. Research also shows that only a few consumers are satisfied with their insurance companies.
High prices, inconsistent service, problems buying insurance online, and poor reviews can hurt marketers struggling to help their insurance businesses gain market share.
Following the trends we outline below can help insurers and their marketing teams address these issues
Emphasize Trust and Transparency
As EY, Deloitte, PwC, and other consultants agree, trust is important in insurance. But as EY points out in its global report, it’s about more than just “brand trust.”
Insurance is a highly specialized and complex business. As such, transparency is a key component in building trust.
The more insurers can reveal about how they make decisions, the more consumers and regulators will trust their decision-making.
Rapidly Increasing Adoption of AI
AI is revolutionizing nearly every type of business around the world. Many organizations are looking to adopt AI to help support their business processes, data collection, and analysis.
In the insurance industry, AI is being used to monitor for potential fraud, process claims, deliver information through chatbots and virtual assistants, and support new products.
Rising Demand for Coverage
According to Fitch Ratings, most insurance lines are likely to see increased demand from consumers this year, despite premiums having risen steadily for four years.
The good news for consumers is that inflation typically doesn’t affect insurance premiums.
However, one insurance industry trend to watch is the automotive sector, where analysts expect auto premiums to trend higher while claims trends are lower.
That means insurers need to prove the value of auto insurance, demonstrate the importance of having coverage, and justify the higher cost to customers. Innovative marketing strategies are essential to getting those messages across clearly.
Tightening Marketing Budgets
At a time when demand for insurance is rising, insurance marketing departments are under pressure to maintain their budgets or risk cuts.
One way to raise awareness of how marketing is making an impact is to closely track the interconnection between online and offline customer journeys.
Online is easy to track, and while many consumers today conduct initial research online, many still choose to complete transactions offline. This makes capturing data from offline conversations, such as phone calls, even more important.
Expanding the Use of Digital Channels
The digital transformation of the insurance industry is expected to continue this year, with many companies investing more in mobile technologies, such as consumer-facing apps, digital platforms, and online portals.
Strategic use of digital channels can improve the customer experience, streamline processes, and enable remote transactions.
Research shows that more than half of online searches for insurance products are conducted via smartphones.
However, marketers must remember that many consumers still use their smartphones to make calls that lead to transactions.
Accelerating Product Innovation
Like any industry, the insurance sector must innovate to grow. This includes developing new products that meet, and sometimes anticipate, consumer demand.
In 2024, look for new products like these to emerge:
- Cyber insurance protects organizations and individuals against financial loss, liability, or legal costs caused by cybercrimes such as data breaches, data loss, and ransomware attacks.
- The global market for cyber insurance is expected to grow from around 12 billion USD, according to Infosecurity magazine.
- Usage-based insurance (UBI), also known as telematics insurance, is a form of auto insurance based on data collected through driving apps, Bluetooth connectivity, built-in systems like OnStar, or plug-in devices in the car.
- Data sent to insurance companies in real-time measures the insured’s braking, speed, and overall driving performance against industry data to determine whether the driver is higher or lower risk than average and calculates premiums accordingly.
- Parametric insurance is a type of fast-track catastrophe insurance where the insurer agrees to immediately settle a claim for the amount specified in the policy, rather than the actual loss when a specific event occurs. For example, a city in the southeastern United States could take out parametric insurance to recover 2.5 million USD if an EF-3 or higher tornado struck the city.
Tailoring Offerings to Customer Needs and Preferences
Personalization is the way of the future for insurance marketing strategies, especially in omnichannel marketing programs.
Most customers who engage with a brand want and expect a consistent and personalized experience.
The increasing use of data-driven digital tools by consumers makes it easier for insurers to provide more engaging needs.
The ability to combine online data with offline conversational data using call tracking and conversational intelligence software also allows marketers to develop a complete
picture of the consumer for better personalization.
Adopting a Customer-Centric Business Model
Another major trend in the insurance industry this year is the growing prevalence of a customer-centric attitude in everyday business.
By shifting to a customer-centric business model, insurers can be sure to put the customer at the center of every business function, not just sales, and deliver products that solve problems for their customers.
The key to delivering a customer-centric business model, of course, is delivering a seamless customer experience and truly knowing your customers, and that requires using the right tools to listen to the voice of the customer.
