This piece is by Tara Kelly, CEO and Founder of SPLICE Software and it looks at the problems in the US market as Cat events damage increasingly concentrated clusters of property and other assets, being built in States prones to events like hurricanes. It’s a big issue for insurers.
Since the end of 2023, home insurance companies have been pulling out of natural-disaster prone states, labeling many Florida and California homes as “uninsurable.” Now as we prepare for another brutal hurricane season, insurance companies are raising costs on homeowners. Five to eight hurricanes are expected to hit the U.S. this year, with three to five expected to cause “major” damage, leading to an expected double-digit rate hike for homeowners in these states.
So, the question for insurers becomes, how can you maintain and even capture more wallet share from policyholders while living up to your brand promise of stability and loyalty during these uncertain times?
Getting Ahead of Policy Surprises
Starting with the right book of business, insurers need to proactively communicate anything that could impact policies for their customers. There shouldn’t be any surprises when it comes to policies – and customers will appreciate that. This is especially crucial ahead of yet another active hurricane season.
But communications to policyholders shouldn’t be limited to just natural disasters. Anything from catastrophic events to cyber-attacks and even fraud need to be communicated as early as possible. From achieving milestones like starting a business to buying a home, there’s an incredible amount happening with your policyholders, and more and more of their lives need to be insured. This provides an opportunity for insurers to show up before they’re in demand and prove their value and loyalty to their policyholders.
This may be easier said than done, but here are a few tips you can implement to strengthen your proactive communication methods and set yourself up for success to earn more wallet share.
Don’t Leave Policyholders Hanging
Starting at the fundamental level, you need to make sure your process gives policyholders the most updated information possible. This means providing regular check-ins and notifications that go beyond policy updates to include proactive measures to address potential issues or threats. Whether it be how to best protect their accounts from cyber hacks, how to safely lock down their homes and properties from a natural disaster or tips on how to keep their vehicles running smoothly, a regular cadence of communication to policyholders is necessary to foster a long-term relationship.
The trick is to make sure you keep the most pertinent communication channels both open and accessible so policyholders can freely contact you when they need to. Ask yourself, what would happen if you ran a simple report to see the last time you updated contact records across your policyholder base? The answer would likely be incredibly informative, showing whether or not you are giving them the opportunity to contact you.
The Right Information in the Right Channel
While regular cadence should be a priority, it’s also important for each message to policyholders to be meaningful. Don’t waste a chance to connect with your policyholders by not including information applicable to them or by not communicating in their preferred channels. You want to use the right information in the appropriate channels with the proper permissions.
Sometimes it may be necessary to move communication to a more secure channel to complete the task at hand, especially when discussing personally identifiable private information or workers compensation issues, as some states have made it completely illegal to have private information submitted over text. Insurers need to be sure that fully secured channels are up-to-date and following HIPAA privacy laws.
Seamless Connections in a Multichannel World
Policyholders also expect a truly omnichannel experience when interacting with any business, so a connected and seamless experience across call, text, chat and email channels is critical to maintaining two-way communication. You want to empower policyholders to move between channels as they see fit, which will not only make it easier for them to build a personal relationship with you, but to also create a single, comprehensive view of each customer.
As insurers and policyholders alike prepare to move faster and faster toward greater access to data, AI and generated and personalized content, let’s first make sure we’re following these foundational steps and allowing the policyholder to be in the driver’s seat in our relationship. Insurers have to be invited into a policyholder’s life, and these proactive communication tips will empower you to make the most of these opportunities to foster better relationships and generate more wallet share.
As insurers release new products to address these increasing needs, whether it be a new renter’s insurance or corporate policy, new directors or liabilities and even additional agent training, make sure to share these exciting developments with your own team as well as your policyholders.
Insurers need to remember that communication isn’t just for policyholders, but also for everyone within their ecosystem from adjusters to agents. It’s important for all parts of your business, both inside and outside, to be able to get to know you and provide feedback in conversations with you, whether it be via two-way texts or chat. But fully providing that support to create an intimate and loyal relationship built on trust, knowledge and availability will develop the greatest wallet share and customer experience to help you deliver on your brand promise.
AUTHOR NOTES
Tara Kelly is the founder, president & CEO of SPLICE Software, a customer engagement company that specializes in using big data, small data and artificial intelligence to create messages that drive customer engagement and the desired call to action.
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