However, many insurers are failing in spite of a growing trend toward digital innovation and customisation. 74% of consumers have canceled purchases because they felt overburdened, per Accenture’s Empowered Consumer 2024 research. Even worse, only 39% of consumers think businesses actually look out for their interests.
Why, then, is there a disconnect? What can insurers do to help bridge it, more importantly?
Based on Accenture’s research conducted in Asia, specifically in China, we examine three crucial levers that insurers need to pull in order to foster meaningful engagement, build trust, and promote long-term growth.
1.Convert Data into Deeply Human Insights with AI
The process of purchasing insurance has become a maze, let us face it. Customers are navigating an information overload, jargon-heavy policies, and a labyrinth of lookalike offerings. Indeed, 62% of people experience choice paralysis and irritation due to feeling overloaded with options.
AI, however, comes into play here as a subtle game-changer.
Insurance companies can now provide hyper-personalized experiences through AI-powered data analytics. These experiences include not only dazzling recommendations but also perfectly timed, highly relevant conversations that seem almost clairvoyant. The secret is context, whether it is through nudging with value-based material or proposing a policy upgrade right before a customer’s life milestone.
According to 94% of CMOs in China, generative AI holds the key to future responsiveness and agility. Although AI has the potential to revolutionize marketing and customer experiences, success depends on having a solid data foundation, which is still lacking in 65% of businesses.
All too frequently, insurers become overwhelmed by useless data or are unsure of where to start. The trick? Start with the important things. Invest in solutions that connect your data to actual consumer experiences and allow machine intelligence and human intuition to collaborate.
2.Use Martech to Increase Speed and Accuracy
These days, customer expectations change quickly. Actually, according to 68% of Chinese CMOs, they are having trouble keeping up. You can not just stand there.
Insurers must transition from reactive to predictive in order to stay agile, and Marketing Technology (Martech) is the catalyst for this change.
Martech platforms enable businesses to collect real-time data on client preferences, automate customized marketing, and optimize operations. However, incorporating Martech into your main digital infrastructure is where the true gold is. Because of this congruence, campaign planning, execution, and performance tracking can be done with ease, allowing creative teams to concentrate on innovation rather than logistics.
We recently teamed up with a top financial institution in Hong Kong that used this exact strategy. A 25% increase in marketing efficiency, a 10% increase in client reactivation, and a 65% increase in new business were the results of their redesigned approach, which was focused on data-driven, segmented marketing across media touchpoints.
3.Use Ecosystems and Experiences to Generate “Wow” Moments
Let us be honest: the majority of insurance goods have similar appearances and textures to the typical consumer. When the product itself does not steal the show, how can you make an impression?
You make the experience better.
Consumers of today are investing in brands rather than merely policies. Additionally, brands that provide a sense of belonging, seamless ease, and unexpected joy are attracting their attention more and more. Actually, 76% of shoppers who like their purchasing experience are inclined to suggest that brand to friends.
This entails going beyond transactional exchanges and creating value-adding ecosystems for insurers, either through internal service integration or creative cross-industry collaborations.
Consider dining benefits with F&B platforms, wellness initiatives with workout incentives, or stargazing movie evenings outside. The first of its type in the area, a Hong Kong insurer even collaborated with a digital meal guide to develop a loyalty program that incentivizes dining experiences while providing accident insurance.
These kinds of partnerships not only foster emotional resonance but also integrate insurers into their clients’ daily life, extending well beyond the point of sale.
Insurers need to start asking: How does our brand affect people’s emotions if they want to succeed? Are we providing them with experiences they will cherish and share with others?
Conclusion: From Partnerships to Policies
Insurers must transform from policy providers to relationship builders in a market with many options but little room for distinction. This change necessitates a daring use of technology, a renewed emphasis on important data, and an uncompromising dedication to client satisfaction.
Insurance’s future lies with people who dare to be different, act with agility, and lead with empathy.
Although the Asian market is the source of these discoveries, the lesson is universal: people who create experiences rather than merely sell goods will gain customers’ hearts and minds as well as market share.
