Collinson states that insurers are missing a trick to build customer retention and loyalty by not communicating enough
Benefits and loyalty broker Collinson revealed that insurers are overlooking opportunities to build customer retention by not communicating extensively enough with existing or potential clients.
Its survey of 2,033 adults who have renewed or purchased travel, car or home insurance in the UK found that around two-thirds (63%) of general insurance customers are open to receiving further communications from their insurer, with 73% interested in gaining targeted product and benefit recommendations.
However, only 46% of those surveyed stated they receive communications from their insurer on a frequent basis and 61% said they get sent relevant recommendations.
More than three-quarters (79%) of respondents revealed that communications with their insurer centred around transactional matters, such as renewal notices. Two-thirds (67%) get communications around policy updates and 37% receive information on terms and conditions amendments.
The implementation of General Data Protection Regulation (GDPR) in May 2018 has made it even more difficult for insurers to reach their customers, especially as 36% of respondents do not know if they provided the necessary opt in to receive updates from their provider.
Of the individuals who opted out of communications after GDPR, 35% said they did so without knowing that they would miss out on updates – 51% of these respondents would not have opted out if they knew this.
Collinson’s survey found that customers’ sharing their data is vital in aiding insurers to personalise communications; the majority of respondents, therefore, are happy to share details around their occupation (78%), dependants (69%) and interests and hobbies (57%).
However, consumers that share their personal data have caveats; 41% require clarity that their data will not be sold to third parties and 38% want confirmation that their data won’t be used to sell other products and services.
If consumers are to receive personalised communications, Collinson stated that this should be based on individual needs and interests, with updates providing value.
For example, 50% of respondents would view their insurer more positively if they were offered benefits, such as flight disruption assistance or 24/7 global access to a doctor, alongside the core product and 69% would be more encouraged to give permission for their insurer to contact them if they received a discount on cover at purchase or renewal as an incentive.
Lawrence Watts, head of insurance at Collinson, said: “There is a clear desire from consumers for better targeting and tailored experiences, but insurers need to help their customers feel comfortable handing over the data that is needed to create them.
“Insurance providers need to demonstrate the value of more regular and personalised communication in order to gain their customers’ trust.
“Those who succeed will be able to develop a relationship with their customers beyond that of a service provider, to that of a trusted partner.”
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