Today’s consumers are informed and want more from brands and providers. Moreover, they desire a better consumer experience. So, to keep consumers’ trust and loyalty, various companies, including insurance, have to cater to their wants. 

What is insurance product customization?

Customizing an insurance product means offering individual or bundled policies tailored to the buyer’s preferences. For example, insurance and banking institutions can use customization tools like those from Earnix, which has an enterprise rating engine that employs artificial intelligence to help provide customized insurance advice, product personalization, fraud prevention, risk management, and underwriting claims processing. With this tool, an insurance company can create more value for the product specific to the individual customer’s needs. In addition, it can help provide policies with the correct cost and only include the services that match the requirements of insurance customers.  

Why do consumers want customization?

The insurance industry has already implemented several changes over the years. As a result, it is now more competitive because tech companies have developed unique and innovative methods to compete.

1. Customers want to see personalization. They want to select and choose the level of coverage from bundled prices and feel that the insurance companies appreciate them by listening to their needs. They want an insurance policy that includes only the specific coverage they want. 
2. Insurance customers want providers to share exclusive offers, services, and recommendations based on the customer’s preferences and needs. 
3. They want a solution that offers ”peace of mind” during important life events, such as buying a new home, as the mortgage lender requires homebuyers to have insurance. They want protection when selling a home, getting a driver’s license, and purchasing a car. Moreover, insurers can offer insurance solutions for customers who are changing jobs, getting married, and starting a family. 
4. On the other hand, today’s consumers want to save money and make decisions based on the most effective and low price the insurance company offers. So some insurance companies’ websites help consumers compare carriers’ prices and offerings to choose the best offer. 
5. Customers want a hybrid experience between in-person and electronic insurance experience. They want their interaction with their insurance agent to be productive and immediate. But they also want accurate information from their agent in one phone call. They want the information to fit their situation. They are looking for meaningful information, advice, and empathy. 
6. They want a better deal at the right price and the insurance agents to be creative with their offerings, which will work well with individual customers. Agents can achieve this if they understand their customers better by studying customer demographics and performing customer segmentation. 
7. Insurance customers are varied, and insurance companies deal with individuals and businesses. Therefore, business customers want insurance designed for their type of business. They want an affordable, responsive policy that offers fast claims service. They also need to understand their insurance coverage fully.

There are several ways for insurers to personalize their products and services. Since they built a reputation for being distant from their clients, it is time for them to strengthen their relations by offering various services. They should understand the customers and their needs better. Doing so will help them create different insurance policies that reflect the best coverage for the specific customer at the right price.