Technology is one of the biggest trends in life insurance, and insurance companies are investing more than ever. Many have developed convenient digital features, such as near-instant access to quote comparisons. Others have developed life insurance policies that can be approved quickly without face-to-face interaction.
Using data to inform marketing decisions is more effective than intuition alone. It can increase sales and customer loyalty while reducing wasted advertising dollars and time spent targeting the wrong audience. But using data to make intelligent decisions is not without risks. The first step is to ensure that your data is clean and accurate. Then, you need the right tools and people to get started. In addition, you need the right policies, software, and controls to ensure that your data is secure and not misused.
Data-driven marketing can help insurance companies tackle several challenges. It enables a better understanding of the needs and behaviors of customers while improving the customer journey, net promotor score, targeted pricing, and acquisition. In addition, data collected by data-driven marketing can help insurers detect fraud.
Automated underwriting in life insurance at Bar Insurance Denver, CO helps insurers save time and money while improving the customer experience. This system offers predictive capabilities and advanced analytical modeling and integrates into existing underwriting processes. In addition, as consumers continue to become more digitally savvy, they expect all companies to be digitally native.
Underwriting algorithms will help life insurers understand their customers better. For example, a high credit score of 450 is associated with a 20% higher risk of death. This data will predict the policy’s risks and payout amounts. Insurers will continue looking for new data sources to make these models more accurate.
Moreover, automated underwriting can help insurance companies identify ideal customers without a physical exam. These algorithms use various information about an individual, evaluated using artificial intelligence and advanced analytics. As a result, the carriers get a more reliable assessment of mortality. This process also reduces false claims.
Insurers are exploring using Extended Reality (XR) tools to improve customer experience. These tools can increase customers’ understanding of their coverage and make the insurance purchasing experience more engaging. Moreover, these tools can boost customer retention for insurers. The Accenture report explains how XR can reduce the cost of distance for both the insurer and the customer.
Extended Reality technology has a wide range of applications, from entertainment to education. For example, it can be used to replace physical manuals and connect people with experts who are not physically present. It can also help organizations save money by eliminating downtime. Moreover, it can simulate various health conditions and diseases.
With a growing emphasis on health and fitness, IoT wearables are starting to make their way into the corporate world. Companies are using wearable devices in wellness programs and tracking employees’ physical activity. Wearables connecting to a company’s network offer the most significant data gathering and analytics potential. As these wearables become more widely available, insurance enterprises are beginning to adopt them. They are also rethinking their business models and shifting their focus from data to customers.
Wearable technology can offer insurance companies the opportunity to personalize premiums for their clients. This new way to assess and monitor health behavior will likely benefit the insurance company and policyholders. With improved health, policyholders are more likely to reduce their premiums. Additionally, many wearables encourage clients to take steps to improve their health and reduce the risk they take.
A customer-centric approach is necessary to create a more personalized customer experience. This means listening to customers’ needs and developing features tailored to them. A few insurance companies are taking this approach by creating products beyond price. In addition, a few have even gone as far as offering customer-centric management tools like Net Promoter Score to help them assess their customers’ experiences and improve their loyalty.
Customer-centricity requires collaboration among insurer leaders and qualitative research and data analytics. It also helps insurers focus on deep customer understanding by enabling customer-centric analytics and mining in-house.