How hyper-personalisation can deliver greater customer value

As the insurance industry becomes increasingly focussed on how it can deliver more tailored customer experiences, gaining a thorough understanding of every customer has never been more vital.

Quantexa has explored the delivery of hyper-personalisation within insurance, particularly, how there is a need for insurance organisations to extract intelligence from their data to this end.

Hyper-personalisation is the timely, relevant engagement of customers across all channels and all stages of the lifecycle. Insurance has always been inherently a personalised service, as customers are offered policies at a particular price based on a measurement of risk. Personalisation is also used to market and recommend certain products.

In an insurance setting, hyper-personalisation takes this further, bringing together a broader set of data (such as external and telemetry data) and using this to create a deeper and more dynamic understanding of the customer. This is then used to inform all aspects of customer engagement through digital and physical channels.

Customer growth is incredibly important for the insurance industry. Insurers, re-insurers and brokers are increasingly focussed on how they can deliver more personalised, autonomous and tailored customer experiences. To do this however, Quantexa stressed that gaining a thorough understanding of every customer is key.

However, Quantexa said that only a small proportion of insurance organisations do this. According to research from the company, only 10% of organisations have explainable and trusted decision automation being used throughout the value- chain. In addition, 70% of organisations lack a trusted holistic view of clients, and 44% of the C-suite see a lack of trust in disparate data causing customer retention issues and missed customer opportunities.

According to Quantexa’s work, disparate and disconnected data systems could be holding insurance companies back from delivering greater customer value. Customer information that may be disparate likely includes historical quotes or claims, contact information, marketing preferences, engagement and web analytics data as well as insights derived from digital engagement and external sources.

Disconnected data, Quantexa explained, leads to an unreliable and siloed view of customers across the business. This means that contact centre agents, underwriters and claims handlers often have a vastly different analytical view of the same customer.

Unlocking the value of customer data to generate what Quantexa calls a “360 view” of customers, will enable insurance organisations to reap the rewards that come with hyper-personalisation thought decision intelligence. This can be done through the use of contextual decision intelligence (CDI), which is changing the way carriers, re-insurers and brokers can seamlessly connect data from different sources, formats, and systems.

Demonstrating the gains to be made, Quantexa pointed to a Tier 1 client who deployed these capabilities. The client was able to deliver $200m in additional revenue, leverage a 50% increase in the conversation rate of application and tailored product offers, and provide decision automation by analysing over 60 billion customer interactions and transactions.

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