The Ultimate Guide to Hyper-Personalisation in Insurance

Insurance companies, along with other financial services industries, have wrestled with two important questions in recent years: How do we attract new customers and keep them engaged, and how do we stay competitive in our market?

Our answer to these questions? Hyper-personalisation. Personalised messaging can help insurance companies reach younger audiences, improve customer engagement and stay ahead of the competition.

What is Hyper-Personalisation?

Hyper-personalisation is a form of personalisation that leverages data and often artificial intelligence (AI) to deliver highly customised experiences to individuals.

Unlike traditional personalisation, which might involve simply addressing a customer by their name in an email, hyper-personalisation goes several steps further. It involves analysing a vast array of data points — from customer behaviour and preferences to things like transactional history and social media activity — to create experiences uniquely tailored to each individual.

Hyper-personalisation is all about understanding customers on a deeper level and anticipating their needs even before they articulate them. With these efforts, companies can deliver more tailored experiences and build a stronger customer journey and develop ongoing relationships.

Hyper-personalised messaging is transforming various industries, including retail, banking and notably, insurance.

What Does Hyper-Personalisation in Insurance Look Like?

The rise in AI and hyper-personalised messaging isn’t new to the insurance industry, where companies have been transforming from being purely transactional to being more personal for years.

This is mainly because insurance companies are wanting to target younger audiences, and personalised marketing and outreach is one way to do this.

  • According to a Gallup poll, Millennials are nearly 2x more likely than older generations to be “actively disengaged” with their insurance provider.
  • Younger generations love video. 70% of Gen Z and 64% of millennials use YouTube for financial information.
  • For the first time in over 14 years, people now say they prefer to research and buy life insurance online instead of in-person. 66% of people say this is because it’s more convenient.

The continued push to reach younger audiences is noteworthy because not only are engaged insurance customers less sensitive about pricing when selecting an insurance carrier, but they’re also the ones buying insurance. 52% of millennials are now homeowners, while 4.5 million Gen Z members became renters within the last 5 years, more than any other age group. That’s a lot of homeowners and renters insurance to sell!

Ebook

Find out how Gen Z will use their buying power to disrupt the status quo (and how you can keep up)

Building customer loyalty, driving engagement and addressing customer needs proactively and creatively is crucial for insurance companies that want to thrive in today’s hyper-personalised world.

Types of Personalisation for Insurance Companies

With hyper-personalisation, insurance companies can use advanced data analytics and AI to create personalised insurance products, tailor marketing messages and provide individualised customer service.

Customised Products

Insurers can design policies that match the specific needs and preferences of individual customers. For example, a young professional living in a city might receive a different auto insurance offer compared to a retiree in a rural area, taking into account factors like driving habits, vehicle usage and lifestyle.

Dynamic Pricing Models

Using real-time data, insurers can adjust pricing based on individual risk profiles. This might include factors such as driving behavior, health metrics, or even weather conditions, leading to more accurate and fair pricing for each policyholder.

Personalised Communication

Insurance companies can send targeted messages and offers to customers based on their unique profiles. For example, a customer who recently bought a home might receive Personalised Video about home insurance with tailored coverage options and discounts suited to their unique customer profile.

Check out this customised video we made for Farmers Insurance based on information that the customer provided.

And with the advancement of Enterprise AI Video, making customer acquisition videos like these is faster and easier than ever. AI handles everything from storyboarding and scripting to post-production.

Proactive Customer Service

With access to comprehensive customer data, insurers can anticipate issues and reach out proactively.

For instance, if data suggests a customer is at risk of canceling their policy, they might get an automated email from a customer service representative with a personalised retention offer.

Examples of Personalised Customer Experiences in Insurance

Many insurance companies are already leveraging hyper-personalisation to enhance customer interactions, improve the claims process and drive business growth. Some use AI, some don’t, but all focus on an excellent CX.

Here are some examples for inspiration.

John Hancock Vitality

John Hancock Vitality is a data-driven program that personalises life insurance policies based on the health and wellness activities of policyholders.

By integrating wearables and health apps, John Hancock collects data on customers’ physical activities, diet and overall health. In return, customers receive rewards such as premium discounts, gift cards and even travel discounts for maintaining a healthy lifestyle.

This not only encourages healthier living but also aligns policy costs with the actual risk, benefiting both the insurer and the insured.

Here’s a video about how John Hancock Vitality works.

Progressive’s Snapshot Program

Progressive’s Snapshot program is a leading example of hyper-personalisation in auto insurance. By installing a small device in their vehicles or using a mobile app, customers allow Progressive to track their driving behaviour, including speed, braking and the time of day they drive.

Using this data and their own algorithms, Progressive then offers personalised discounts and rates that reflect the individual risk of each driver.

AAA’s Renewal Videos

Renewals are an important time for insurance companies because this is when their customers either continue with their company or shop around for a new provider. Personalised Videos can make this conversation much more human and relevant.

For example, AAA sent renewal videos to their customers that shared specific information about their current policy, their renewal date and premium and next steps they can take advantage of.

With this hyper–personalised approach, the video not only reminds customers personally how AAA appreciates their business. It also encourages them to opt in for additional programs and upfront payments to get even more value out of their policy.

Drivewise From Allstate

Similar to Progressive’s Snapshot, Drivewise uses telematics to gather data on driving behaviour and make their underwriting hyper-specific. Customers who enroll in the program receive personalised feedback on their driving habits and can earn rewards for safe driving.

The video below explains how it works.

The Benefits of Personalised Messaging for Insurance Companies

Hyper-personalisation has lots of benefits for insurance companies, from assisting with onboarding to making policy renewals or cross-sells and breeze. Here are some key benefits.

Improved Customer Engagement

Personalised messaging ensures that communications are relevant and valuable to each customer. When customers receive offers and information that resonate with their specific needs and preferences, they are more likely to engage with the insurer.

For example, we’ve helped some insurance leaders get 5x more engagement with Personalised Video.

Higher Customer Retention

By providing personalised experiences, insurers can build stronger relationships with their customers and in such a highly-competitive market, this is crucial. When customers feel understood and valued, they are less likely to switch to competitors.

Personalised retention strategies, such as targeted offers and proactive customer service, can significantly reduce churn rates.

In insurance, personalisation can lead to 5x higher engagement when it’s delivered in video form.

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Enhanced Customer Loyalty

Personalisation fosters loyalty by consistently meeting and exceeding customer expectations.

Customers who experience personalised service are more likely to develop a sense of trust and loyalty towards their insurer, leading to long-term relationships, continued policy renewal, cross sells and referrals.

Increased Sales and Revenue

Personalised marketing messages are a powerful sales tool. When customers receive tailored recommendations based on their individual profiles, they are more likely to make a purchase.

Our insurance clients that have implemented Personalised Video have seen powerful results, including an 8x increase in sales.

Improved Onboarding Experiences

Hyper-personalisation can significantly enhance the onboarding process for new insurance by creating an engaging, efficient and tailored experience.

Using AI and data analytics, insurers can create personalised onboarding messages that cater specifically to each customer interaction.

Check out this personalised onboarding video we made for Highmark Health.

Tips for Getting Started With Hyper-Personalisation

Insurtech, or technology used to improve the insurance industry, has come a long way in recent years. Because of this, getting started with hyper-personalisation isn’t as complicated as you might think.

Invest in Data Analytics and AI

Data is the foundation of hyper-personalisation. Insurance companies need to invest in robust data analytics and AI capabilities to collect, process and analyse vast amounts of customer data. This includes integrating data sources such as customer interactions, social media and more.

Implement Advanced CRM Systems

Customer relationship management (CRM) systems play a crucial role in hyper-personalisation. Advanced CRM systems with AI capabilities can automate personalised messaging, track customer interactions and provide actionable insights.

Not only does having advanced CRM data help insurance companies deliver timely and relevant communications to each customer, but it’s also the gateway to personalising video, one of the most powerful communication channels, at scale. Our Next Generation Video Platform can take the data from your CRM system and create Personalised Videos for onboarding, cross selling and policy renewals quickly and efficiently.

Prioritise Data Privacy and Security

With the increased use of customer data, ensuring data privacy and security is crucial. Insurance companies must comply with regulations and implement robust data protection measures.

We’re ISO 27001 certified and SOC 2 Type 2 compliant, and we continually update our credentials and undergo rigorous testing to meet the latest security standards.

Hyper-Personalisation for Insurance Companies

In an age when people expect personalised customer experiences, especially from financial services companies, there’s never been a better time to get started.

At Idomoo, we make it simple for companies to create Personalised Videos at scale leveraging AI so you can generate them at a fraction of the time and cost.

To get started, click the button below to schedule a call. We’d love to show you how it works.

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