Open insurance creates many opportunities for insurance providers and financial institutions to strengthen their customer relationships. Curious as to how? We’ve compiled a list of ways in which you can improve your customer relationships with the help of open insurance.
Open data and seamless customer experiences are becoming the expectation; the norm rather than the exception. The insurance business has long been behind in this area – selling a product or service that is very hard to understand. Open insurance makes it possible for the insurance industry to “get with the times” and catch up on all the benefits that digital transformation and open data have to offer. EIOPA – European Insurance and Occupational Pensions Authority – recently published a discission paper on the benefits of open insurance, one of which is improved consumer services: "The integration of data, technology and new services could result in insurance products and services more tailored to the demands and needs of consumers."
Below, we’ve assembled the main ways in which open insurance can do just that: offer better-tailored products and services to consumers, increasing customer loyalty and engagement.
How to increase customer loyalty with open insurance:
A well-informed customer is a loyal customer. Open insurance gives you the opportunity to use the available data to your advantage – to show the customer why they should a) choose you over their current insurance provider or b) stick with you as your offer is better than other insurance providers. If you, with the help of data, can prove that your offer is superior to your competitors’, you could even ask for a higher price. And the better informed customers are, regarding the insurances they have or are missing, the more likely they are to want additional insurance services.
Create smooth and seamless customer experiences. Open data makes it possible for you to offer frictionless customer experiences. If the customer wants to leave their current provider and choose you instead, you can use open insurance data to make their transition journey as smooth and trouble-free as possible. The modern customer is expecting things to be simple, no muss, no fuss. This goes for insurance experiences, too. Open insurance makes it easier for you to meet current customer expectations.
Use data to build a comprehensive customer profile. If you use the available open insurance data to build a comprehensive profile of the customer – with information about buildings they may own, pets, children, vehicles, and the like – you can better tailor your insurance offer. Doing this makes it easier for the customer to get an overview of the coverage they may need or insurances they have that are unnecessary. This increases customer confidence and trust which, in turn, boosts customer loyalty.
Create a complete solution with open banking and open insurance. For financial institutions, open insurance gives you the opportunity to keep the customer local. If they can access their complete financial and insurance profile in your app, they won’t need to go elsewhere. This leads to a higher amount of touch points between you and the customer, resulting in higher customer engagement and loyalty. Open banking already enables most of this kind of networking, but open insurance is the missing piece of the puzzle. A piece that is now available via open insurance and software solutions such as the Insurely API.