“The availability of data is creating new possibilities for insurance companies to offer their customers appropriate products and services.”
Claus Peter Hendricks, Senior Manager, zeb
Higher customer retention and better products thanks to digitalization and big data
Digitalization and new rules for third-party access to bank account data are fundamentally changing the relationship between insurance companies and policy holders. Traditional providers need to get used to the opportunities in customer communication as well as increasing competition from new players.
Conventional insurance companies have large customer bases, but often a small share of wallet—in other words: many of their customers only have one or but a few policies. Traditional insurance companies tend to have difficulties selling additional policies to existing customers. Furthermore, new competitors—such as comparison sites—are putting them under pressure as they often already occupy the new digital customer interfaces.
But it is not only digitalization that is changing the relationship between customers and companies: among other things, the new EU payments directive PSD2 regulates access to bank account data by third parties. This creates new opportunities for customer communication—for insurance companies, but also for competitors from other industries.
Increasing the number of policies per customer is a huge lever for growth, a fact not lost on most insurance companies. Still, they have trouble utilizing this knowledge: to do so, they need to offer existing and new customers innovative solutions, to interest them in new contracts and retain them long term. The digital customer interface will also become the strategic focal point due to the new EU payments regulation PSD2.
Prize-winning coaching approach: zeb success agency
Digitalization and competition lead to insurance agencies becoming more professional and acting as larger units or teams. The coaching concept “zeb success agency” enables these teams to overcome the challenges of digital and organizational transformation and significantly boost sales success. In a three-month activation phase, our business coaches use the effects of group dynamics in an agency team to ensure willingness, ability and application. Our coaching sessions boost sales performance by more than 85 percent on average—an increase that still lasts 18 months after completing the activation measure.
PSD2: utilizing opportunities from payment transaction data
Payment transaction data from customers provides insurance companies with in-depth sales-relevant information. The EU’s PSD2 regulation allows insurance companies to use this bank data if customers give their consent. To obtain this consent, insurance companies should offer customers tangible added value. zeb can provide comprehensive examples of best practice approaches for successfully obtaining and using this data. Our service portfolio includes designing user journeys, developing use cases, their technical implementation and the use of agile methods including cutting edge findings from data science.
Omni-channel strategies are concerned with the modern design of the customer interface. Policy holders increasingly use digital channels to contact their providers, but they still rely on other channels too. For this reason, insurance companies must be able to communicate with the customer via their preferred channels. There are currently three basic versions of a so-called omni-channel strategy: separation, mix and integration. The versions differ in the degree of integration of personal and digital customer contact channels. The strategy that an insurer choses depends on the current situation, especially on the existing mix of sales channels.
zeb offers its clients from the insurance sector a proven framework for developing a tailored omni-channel strategy. Comprehensive benchmarks and specific design features for specific business models present each insurance company with the necessary facts to decide on the right strategic direction.