Introduction Building brand value in insurance has never been easy. Insurance is famously an unloved industry. Billions of dollars are spent every year, particularly by auto insurers, on advertising campaigns that focus on price and make scant reference to the product being sold. At the heart of the problem has been a lack of positive customer touchpoints – the scaffolding, so to speak, around which a company can tell an engaging brand story. Most insurers interact with most of their customers only once or twice a year, at renewal. And at a time of rapidly rising premium rates for many lines, this may not be a positive experience for the customer. But opportunities for insurers to tell a much more interesting and engaging story are growing. Generative artificial intelligence holds out
the prospect of insurers building closer, more personalized relationships with their customers, banishing the notion of the ‘faceless’ insurer for good. In the property insurance market, the internet of things is ushering in a new generation of risk prevention services. And in many markets, insurers are broadening their value proposition through incident response services and additional benefits - from health club memberships to travel discounts - that customers value. For insurers, the main return on all of these investments comes from longer lasting customer relationships and, consequently, greater lifetime customer value. This benefits the bottom line because the cost of acquiring a new policyholder typically far exceeds the cost of retaining an existing one. High customer churn is expensive.
This report has been produced with support from Agero. Leading vehicle manufacturers and insurance providers use Agero’s roadside assistance services to strengthen their businesses and create stronger, lasting connections with their customers.
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