The insurance industry is undergoing rapid change. Technology is being integrated into our processes to help us do our jobs more accurately in less time. And we’re seeing a new generation of policyholders who highlight the importance of modernization.
This “new” group of policyholders is increasingly moving away from traditional insurance companies. They’re looking for new technologies, new services, new ways of operating, and new approaches to customer service. This is, in part, due to the negative stigma surrounding the insurance sector. Companies adopting new technology have found they can rebuild trust between insurer and policyholders.
This brings us to the big question. Who are these new policyholders? What are they looking for? And how do they view the insurance sector as it stands today?
Getting to know the new policyholder
What’s their age?
The “new” group of policyholders tend to be millennial and younger customers, between ages 18 and 34. That’s not to say there aren’t outliers, there are many policyholders that fall out of this age range that still seek a more modern experience from their insurer.
What do they like?
This new policyholder grew up during the digital revolution. Technology is crucial to a great experience for these policyholders, from the ability to self-manage their accounts to AI-powered claims handling.
They’re also looking for sustainable and ethical practices. These are now key factors in any purchasing decision, from groceries to insurance policies.
How do they understand insurance?
These new policyholders have grown up with a negative perception of the insurance industry. Stories passed down from older generations have painted the insurance sector in a poor light, meaning that some don’t actually have a full understanding of how insurance works.
According to a study by MacNeill, 80% of customers in this age group are looking for agents to help them better understand how insurance works. And it’s not just the intricacies of insurance that they’re struggling with. Many younger customers are unsure exactly how insurance will protect them and how the pricing system works.
Insurance providers need to offer further support if they want to attract these customers. This can be through agents spending time with customers to discuss customer concerns, simple video marketing strategies, and AI-powered guidance throughout any digital interactions.
Despite the need for assistance, the latest group of policyholders are certain about one thing: personalization. They’ve watched their parents struggle with complicated packages that cover too many things they don’t care about and too few of the things they do — and they’re not interested in following the trend. Instead, they want insurance that covers what they need and nothing else.
This is another area where AI can help attract new customers. The technology can identify customer needs and create packages perfectly suited for them.
What won't they tolerate when it comes to service?
As we mentioned, this new generation has heard insurance horror stories from older generations. This means that their tolerance is much lower than regular customers. If an insurance provider can’t live up to their expectations, they’re more than happy to look elsewhere for a provider that does.
To win them over, insurers must actively promote positive, ethical values that focus on sustainability and security. Insurers handle a large amount of personal data, and policyholders need to feel like that data is in safe hands.
They should also treat every customer as an individual rather than a case number. Alongside personalized services, this new generation of policyholders is looking for a personal touch combined with the power of modern technology.
What kind of new features or technology do they look for?
There is a vast range of technology available to insurers. With each new development comes a wave of media attention that lets policyholders know what they should be looking for in an insurance provider. This means new customers have a mental checklist of features and technology that their ideal insurance provider will offer.
Artificial intelligence (AI)
AI has been revolutionizing the way we work in insurance. It has sped up countless processes, saving customers from the lengthy wait times traditional insurance companies offer.
Visual Intelligence (VI)
VI empowers users to handle their own claims processing. It also heavily reduces the chance of fraud, which helps keep premiums down.
The new policyholder has access to almost everything they could ever need in their pocket. Mobile apps are no longer a luxury — they’re a necessity.
New ways to interact with agents
Noone enjoys lengthy phone calls and hold music on repeat. Customers are looking for the ability to contact their insurer quickly and efficiently so they can get on with their day.
Cater to the new policyholder with the right technology
New Available Whitepaper
Visual Intelligence applied to the insurance industry
Artificial Intelligence in general, and Visual Intelligence in particular, are very present in our days. Perhaps, much more than we imagine.