Three key steps to renewing the insurance customer relationship | Insurance Blog

In today’s competitive environment, the lines between product and value propositions among Asian insurers are blurring, forcing companies to find new ways to capture customers’ attention and protect their business. As a result, customer engagement and experience has become a key factor in success. Despite insurers’ efforts to prioritize customer-centric approaches and personalized experiences, 74% of consumers have abandoned purchases due to feeling frustrated, according to “The Empowered Consumer“a global buyer for Accenture rsearch 2024. In addition, consumer trust and credibility remain alarmingly low, with 39% of consumers believing that companies have their best interests at heart.

Why is this happening? Based on recent research conducted by Accenture, both globally and in the Chinese market, we have summarized some key findings.

• Information is abundant: Consumers are often confronted with an overwhelming amount of information, leading to frustration as they struggle to sort and verify information. 62% of consumers feel overwhelmed by the sheer number of options available to them.

• Crowded market: In Reinvent Compatibility in the Age of Overloadingwe found that nearly 80% of Chief Marketing Officers (CMOs) across all industries in China recognize that product offerings and marketing strategies are integrated. Although many options exist, this has created confusion and paralysis of decision among consumers.

• Customer growth expectations: Consumers are increasingly focusing on buying products rather than just buying products, and a good brand experience is very important to insurance as purchasing decisions are rare compared to other consumer goods. To succeed in this complex environment, insurers must reinvent the customer relationship – by adapting, innovating, and leveraging technology.

With this in mind, this blog focuses on three aspects of promoting and sustaining profitable growth, by improving customer engagement and experience:

1. Drive data-driven marketing with AI:

Advances in data analytics and artificial intelligence have made personalization more accessible, guiding customers through their decision-making journey. 94% of Chinese CMOs they believe that Gen AI capabilities can help improve organizational efficiency and agility in responding to market needs.

The integration of AI tools enables marketing campaigns to focus on relevant topics and upcoming games, generating marketing messages to stay top of mind. It also empowers agents with tailored recommendations and advanced insights based on customer interests, engagement history and lifestyle factors.

We are seeing insurers differentiate themselves by developing AI capabilities that match products and customers based on various data elements, providing recommendations based on the level of alignment between products and customer needs.

While data is the foundation of AI capabilities, many organizations are struggling, too 65 percent are facing challenges in building a database in the end. They often lack clarity on what data is relevant and are not sure where to start. As insurers navigate this complex landscape, prioritizing data organization and fostering collaboration between technology and human intelligence can unlock the transformative power of AI.

2. Embrace marketing technology to drive innovation and speed

68% of Chinese CMOs they feel that customer expectations are growing faster than their companies can keep up. Being able to respond quickly to these needs is critical to success. To close this gap, insurers need to use Marketing Technology (Martech) to gain valuable information about customer preferences, enabling faster responses through automated workflows and more targeted advertising. This means delivering campaigns at the right time and in the right format, tailored to each customer’s unique preferences.

To improve their marketing strategies, insurers should consider integrating Martech into their master database and data. This integration can create a seamless journey from campaign planning, execution to tracking, allowing marketing resources to focus on their core mission – driving innovation – rather than getting bogged down in administrative work. We have partnered with a leading financial institution in Hong Kong to raise its Martech capabilities and improve its marketing activities. They introduced a new strategy focused on engaging customers with targeted marketing campaigns, using insights from customer segmentation, product analytics, analytics, and various media channels. This comprehensive approach led to impressive results: a 65% increase in new business, a 10% improvement in existing customer renewals, and a 25% improvement in marketing efficiency.

While integrating marketing strategies based on customer behavior and preferences, Martech must also enable omni-channel capabilities across multiple touch points. Ensuring a consistent message and seamless transition between channels helps insurers engage with customers effectively and deliver a cohesive product experience.

3. Drive meaningful engagement and build a customer-centric ecosystem

When products and services between companies become more similar, customers evaluate not only based on the business relationship, but more importantly, the broader experience they have with the product. They want unique and memorable interactions that may not be directly related to the product they are buying. 76% of consumers those who find joy in shopping are more likely to recommend the brand to others, highlighting how a positive and engaging experience strongly influences brand advocacy and customer loyalty. This emphasis on a unique experience is especially important in the insurance industry, where purchasing decisions are rare compared to other consumer goods.

Insurers can build an ecosystem internally by integrating various product lines and services, or by collaborating with external ecosystem partners to expand expertise. In fact, few insurance providers are already using the ecosystem to deliver more information and expand their customer base. This can include partnerships with organizations in health and wellness, retail, entertainment, and travel to provide unique benefits and experiences for policyholders. They may also organize events such as outdoor yoga classes, running events, and outdoor movie nights to position themselves as the perfect health and wellness partner.

For example, one of the insurance providers in Hong Kong has he entered cross-industry partnerships and the Internet Food and beverage guide platform to provide exclusive loyalty information, health and wellness incentives, and be the first insurer in Hong Kong to offer coverage for any food related accidents.

To be truly successful, insurers must strive to provide a unique and memorable experience. Although many customers may not understand the technical differences between the products offered by different insurers, they do recognize when they experience different ‘wow’ moments. Assessing your current position among competitors and actively seeking ways to deliver a unique experience can help your brand leave a lasting impression on customers.

The conclusion

Standing out with a unique experience is key to securing lasting customer relationships and leading the way in a changing insurance landscape. As insurers navigate this challenging environment, their commitment to customer engagement and differentiation will be the catalyst for continued business growth. We believe that the insights we have gained from Asia can inspire leading insurers in other regions for their future customer engagement efforts.