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Reinventing Insurance for the Digital Generation

With rapid global digitisation, the insurance paradigm has shifted. With increased volumes of electronic data and a limitless number of mobile interfaces, companies are having to re-think how they interact with customers and the products they offer. This involves embracing new technology and using it to help them develop and support the industry going forward.

The future of insurance is about adapting to a different generation of digital customers with specific individual needs. Gone are the days of one size fits all. Launching a standard insurance product into the market is passe. Instead, insurance companies need to reinvent their business and understand the unique needs of every customer. Using the plethora of digital technology and data we now have access to, coupled with extensive research and focus groups, we are able to successfully craft bespoke products for each individual network and customer – banishing the uniform product.

We need to be actively investing in people, processes and technologies to maximise the opportunities with the next generation of customers. The future is all about understanding each of their particular pain points, and then harnessing the opportunities and creating partnerships that help alleviate each specific need. Affiliations allow us to build teams and products with digital capabilities that are dynamic, scalable and provide specific solutions exclusive to each unique target ecosystem.

For example, in the travel sector where there are lots of different relationships and touchpoints, customers want to be offered insurance solutions based on their journey. Understanding this, Chubb analysed massive amounts of data and helped its airline partners facilitate engagement across the various ecosystems. We created four general personas and targeted each one accordingly:

  • ‘The Adventurer’ who saves up to fund his/her sporting trips and is always looking for the next big thrill.
  • ‘The Explorer’ who loves to experience different cultures and cuisine. Bringing home exotic finds and gifts is the norm.
  • ‘The Empty Nesters’ who wish to travel after spending time bringing up their children. Value for money is the way to win their hearts.
  • ‘The Retirees’ who are healthy with plenty of free time on their hands. Food and water safety and going at a slower pace are their concerns.

We were then able to deliver both traditional and non-traditional tailored travel products for each of these ‘personas’ to choose from.

Over time, we were then able to create an extensive opportunity insurance map that included products that supported every part of the persona customer’s ‘journey’ from booking, confirmation, flight, arrival home and rewards. In the future, we will be able to collect increasingly more data and expand our personas with further segmentation and provide increased bespoke insurance offerings.

It’s all about unbundling and creating hybrid insurance solutions across multiple product lines. This method of partnerships can be adapted across sectors. For example, by partnering with a bank, effective insurance can provide a more seamless end-to-end customer experience, whilst delivering tools and data analytics. Target groups, such as Millennials in the under 40 age category, can be given a credit card insurance product that appeals to them instead of the standard offering.

Once an insurance product is launched, you can work with affinity partners to offer incentives that will reward customers for certain behaviours. As an example: Chubb recently launched a highly effective campaign with a major telecommunications company in which customers who renewed their broadband subscription were rewarded with a free 6-month home and contents insurance. This was due to a select customer demographic to whom we knew the campaign would have greater appeal.

Reinventing insurance for this generation of consumers is all about building our and our partner’s capabilities across multiple digital channels. To do this, the insurance industry needs to leverage technology to deliver the right solutions to the right markets.

Jon Ford

Written by Jon Ford

Jon is the Vice President & Regional Head of Partnership Distribution for Chubb in Asia Pacific. In this role, he works with leading consumer brands to grow their business even further and enhance customer loyalty through implementing digital solutions and strategic partnerships with Chubb.

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