Many aspects of life have become hyper-personalized. Take a minute to think about your own daily experiences. Amazon suggests new books, Netflix recommends new shows, retail websites recommend hot items, and your Google browser presents results – all based on your previous choices.
These hyper-personalized experiences happen without a thought and seem perfectly natural even though they weren’t conceivable 15 years ago. As Forbes explains, AI-driven personalization is changing everything. It’s even changing insurance.
Data for Personalization: The Big Trade
According to Accenture, 82% of insurance customers are willing to give insurers access to data on their behavior in exchange for optimized coverage, and 78% will hand over this information for personalized offers.
When we think about trading data for personalized coverage, we probably think about auto insurance startups in the usage based insurance space. Root Insurance, for example, calculates rates based on how the insured actually drives. After drivers download an app that monitors their driving, they can purchase a personalized policy or even create their own plan.
This model could change auto insurance. According to Fox Business, Root Insurance recently raised $663.7 million in its initial public offering, and the company is valued at $6.7 billion.
Beyond Auto Insurance and Startups
The hyper-personalization trend isn’t limited to startups or auto insurance. Accenture names Hiscox as one example of a big insurer that is already running with the idea of hyper-personalization. Hiscox has implemented web services that allow small businesses to assess their own insurance risks and buy coverage that is tailored to the needs of the business.
In another example, Thimble allows business owners to purchase liability insurance in just 60 seconds, with coverage for any term – ranging from one hour to one month.
Health insurance is also moving toward hyper-personalization. For example, according to Deloitte, health plans like Aetna and Tufts are using data to personalize and improve wellness and care.
As both new startups and more traditional insurers embrace the personalization trend, every line of insurance – from property and casualty to business to life and health – can expect to feel the impact.
5G and the Next Phase of Connectedness
Hyper-personalization has been facilitated by technological advancements. If not for AI, the internet, the internet of things, wearable devices and other digital tools, we wouldn’t have the data that makes this trend possible. Given this, it makes sense that another technological breakthrough could push the trend even farther.
That breakthrough just might be 5G.
5G refers to the fifth generation mobile network. Along with many other advantages, it’s up to 10 times faster than 4G according to CNN Business, and it can also support a greater number of connected devices. Once it’s fully rolled out, 5G could enable more smart devices, more connections and more data – and that could speed up the insurance personalization trend.
Technology is changing the world, and hyper-personalization appears to be the way of the future. The question is – which insurers will pave the way forward and which insurers will fall behind?
Launch Your New Products and Services with a Hyperpersonal BPO By Your Side
Covenir’s BPO services were hyperpersonal before it became a trend. We’ve always delivered custom service packages to meet the precise needs of our clients, and we can evolve our approach as data increases and solutions become more hyperpersonal. In addition, we happily co-exist with client teams and with other partners. We’re available for as much, or as little help as you need, which is ideal when you want to test a new idea without building infrastructure first.
Contact us to start the conversation or explore these case studies.