Mindset Shift: How Insurance Companies Can Take a Proactive Approach to Drive Loyalty

Integrate Insurance With Smart Home Tech

Having a smart home is top of mind for many consumers today. There are technologies that provide robust experiences, like distributed audio and multiple wireless access points, and those that provide peace of mind, like advanced security. Many smart home technologies intersect with insurance. For example, wouldn’t it make sense for a security system and insurance policy to be more closely linked—even “talk” to each other? While theft prevention serves as a logical starting point, there are other opportunities for insurers to leverage technology to benefit customers, including sensors that can detect water leaks and smoke and precipitate a quick, preventive response. Insurers may even offer an “away” mode that increases coverage while customers are traveling.

Offer Risk Notifications or Alerts

Whether through integration with social media hubs like Nextdoor or other means, insurance companies could offer additional value by sending customers notifications or alerts to help better protect against potential theft or damage for any insured property, cars, or other related valuables. For instance, sending a customer an alert if there’s been a rash of car break-ins in their neighborhood is excellent customer service, but also prompts them to take extra precautions—and could help them avoid filing a claim. This idea could also be applied to weather-based threats such as wildfires or floods.

Incorporate Digital Inventory-taking

Much like the transition many customers made to mobile banking deposits—especially in recent months—the same could be done to add property or valuables to an insurance policy. Imagine having an app that allows a customer to quickly access their insurance account and request to add a new piece of jewelry to the coverage. Perhaps all it would take is answering a few questions and uploading a picture? Once again, there are benefits to both the customer and the insurance company. While the customer ensures they have coverage on that new bracelet or 65-inch flat-screen, the insurance company has updated and accurate data.

Create an Insurance Robo-advisor

Robo-advisors, which rely on software and advanced algorithms to manage investment portfolios, are growing in popularity. Indeed, we’re seeing pop-up investment shops and larger investment managers building these solutions, which are particularly appealing for investors with a small amount of money to invest.

Why couldn’t the concept apply to insurance? If insurance companies enabled customers to set a profile and answer a brief questionnaire, an algorithm-driven robo-advisor could intelligently and actively manage their insurance portfolio and/or risk profile, with the option to escalate to a human agent if needed. A robo-advisor could ask questions of direct customers and provide recommendations based on their personal needs.