A contribution from Julien Lhoste, CEO of obendy®
The insurance sector is at the forefront of current changes in our society, influenced by climatic, societal and even technological factors. Faced with the increase in extreme weather events generating an increase in claims, insurers must adapt to new consumer expectations while integrating technological advances that are redefining customer relationships. However, despite developments favoring communication, the nature of this relationship is still very episodic: apart from key moments such as subscription, termination or handling claims, interactions with customers remain rare, limiting the possibility of understanding them better and reacting more precisely on their expectations. Added to this is growing competition with the emergence of neo-insurers and insurtech, born of digitization, which encourages traditional insurers to continually rethink their offerings to remain competitive and relevant.
In this context, increasingly demanding consumers expect not only quick responses, but also personalized and differentiated interactions with their insurance company. Data control then becomes a crucial lever to contextualize customer needs and offer them tailored offers, while guaranteeing a fluid and human customer experience.
Between technological innovations and societal changes
Customers now demand fast, user-friendly digital services, accessible through mobile applications and online platforms. This digitization simplifies interactions and improves flexibility and speed in contract and claims management. However, it comes with questions, especially regarding security. In fact, in 2023, 53 per cent 1 Businesses have been victims of cyber-attacks, prompting insurers to develop specific protections to respond to these threats.
Concerns have also developed regarding health and disaster protection. The COVID-19 pandemic has not only highlighted new expectations regarding health security, but also service continuity. At the same time, natural disasters are becoming more frequent with 37 claims in 2023 against 30 in 2020, making 2023 the third most expensive year for insurance companies with a climate bill of 6.5 billion euros. 2.
These various events highlight a growing gap between the protection customers have and the protection they actually need, revealing that the insurance solutions available are not always in line with their new needs.
To meet these new demands and reduce this gap, insurance players must innovate and adapt their offer to the needs of their customers. For example, in light of natural disasters, some companies now offer specific coverage for damage caused by floods, fires or storms, including fast claims handling options. Similarly, after the COVID-19 pandemic, protection against loss of income in the event of temporary quarantine or closure was introduced, as well as extended coverage for medical expenses in connection with infectious diseases. Finally, the development of strategic partnerships that make it possible to offer targeted services, such as with training and risk prevention companies (cyber/environment), make it possible not only to strengthen the preparation of customers in relation to these different events, but also to position the insurance company as a true daily partner.
Data as an ally in a lasting customer relationship
Limited contacts between insurance companies and policyholders lead to a lack of overview of consumers’ moments in life and the resulting needs. In order to contextualize and personalize their offers, it is essential for insurers to rely on customer data.
However, the data collection must be done effectively and differentiated from traditional satisfaction surveys to guarantee a smooth customer experience without loss of time, a valuable factor for the insurance companies, but also for the customer. It can be done by analyzing policyholders’ daily interactions through digital channels such as mobile applications, the website or even exchanges with customer service. For example, by observing the frequency of consultation of contracts, the types of questions asked or the various complaints, it is possible to provide personalized advice to optimize contracts, to offer additional services (such as legal and health protection offers) or even support for budget management.
The Internet of Things (IoT) also makes it possible to retrieve real-time information about customer behavior and thus be able to offer suitable insurance, but also non-insurance, solutions. Thanks to connected objects, such as health sensors, activity meters or home automation systems, insurance companies can offer preventive, support or well-being services. For example, sensors in a connected home can monitor the status of equipment and prevent damage, such as leaks and fires, before they even occur. Health monitoring systems, in turn, can provide data that makes it possible to offer coaching services, quality of life advice or even premium reductions depending on the goals achieved.
Beyond Insurance, for its part, offers a new approach to renewing the relational model of insurance. By offering relevant additional services at the right time and to the right person, it allows insurers to strengthen loyalty and adopt a proactive, customer-centric approach. The collected information is thus centralized and used in an intelligent and justified way. By anticipating future needs through analysis of current behavior, insurers can offer personalized services that improve policyholders’ daily lives while optimizing the customer experience.
However, since data is essential, insurance companies must be able to guarantee that the information collected will be used in a secure and ethical manner and for a purpose strictly beneficial to their customers in order to maintain their trust. Consumers are increasingly concerned about their digital footprint. In fact, according to a barometer conducted by Kantar 392% of the French say they are aware of and concerned about the use of their data. Although analysis and processing of their information is a major concern, 70 per cent4 However, the French see some interest in it in the case of “preventive” insurance proposals.
The enrichment of databases allows reactivity and proactivity in responding to the specific needs of each policyholder, improving loyalty, which is essential in this volatile market. By using a well-thought-out digital approach, “beyond Insurance” contributes to establishing a lasting customer relationship.
An insurance that is more human and closer to its customers
By utilizing data, insurance companies can adapt their offers and anticipate future needs. This saves them time and makes them available for more in-depth interactions.
Artificial intelligence has made it possible to respond to speed issues that policyholders require, such as simple requests for questions regarding the contract. In fact, more than 41 per cent5 of the French say they are comfortable with the idea that artificial intelligence can help them complete their documentation, complete their insurance application or help insurance managers deal with their questions. In this sense, and thanks to the history of exchanges and personal data, AI can therefore provide immediate answers while preventing the customer from repeating himself.
However, the use of chatbots and other AI-powered tools can lead to a lack of humanity and personalization. In this sense, alongside specialized training in listening and empathy for employees, it is interesting to turn to a beyond insurance model, which places the human being at the heart of the customer experience. This concept makes it possible to offer a more personal and attentive service, establishing a more human and less intrusive relationship, while responding effectively to modern demands.
Through these different approaches, insurance companies are positioning themselves not only as multi-service providers, but also as trusted partners in their customers’ daily lives.
The humanization of customer relations in the insurance sector therefore requires a well-controlled digital transformation and personalization of services. Insurance companies must take an empathetic and proactive approach while using technology to build proximity and trust with their customers. This human-centric digital strategy is essential to meet new consumer expectations and to differentiate yourself in an ever-evolving market.
1 Hiscox 2023 Cyber Risk Management Report
2 Conference “For an Insurable France”, France Assureurs, 2024
3 Barometer “The French and their privacy on the Internet”, produced by Kantar for Qwant, Proton, Olvid and Murena, 2023
4 And 5 Guidewire survey “French policyholders favor using artificial intelligence as a tool in insurance”, 2024
Also read : TRIBUNE | The data law in Europe: how to prepare for the new data sharing rules?
