Car insurers are following the lead of other sectors in digital personalization

Car insurers are trailing other sectors in terms of marketing and digital personalization, risking losing market share to more innovative competitors.

That’s according to consulting firm BearingPoint, which said its research showed some car insurers are unable to meet customer expectations when it comes to trip tracking.

This includes not remembering previous visits to their website or providing personalized recommendations and extras in real time.

BearingPoint says some insurers failed to send a personalized email after a car insurance quote.

Tony Farnfield, partner at BearingPoint, said: “Although the industry is undergoing significant transformation due to ever-changing consumer expectations, regulatory changes and market dynamics, our research found that investment in personalization appears to be limited in the UK motor insurance industry, with most being in the early stages of offering a seamless and personalized customer journey compared to industries such as retail and automotive.

“Our research shows that car insurers are lagging behind other sectors in areas such as trip tracking, where previous visits to an insurer’s website need to be remembered and personal recommendations or extras provided to the customer as they navigate the site.”

The best performer

BearingPoint assessed all motor insurers against a pre-defined framework that covered the customer journey through purchasing motor insurance from consideration to customer service support.

The ability to deliver a personalized customer journey was assessed using a scoring system ranging from “no personalization” to “excellent personalization” across all 11 touchpoints.

LV= was the best performing motor insurer in terms of consideration, rating, experience and support.

BearingPoint said its findings also show that car insurers have an opportunity for “quick wins to attract and retain customers through more effective marketing and digital personalization.”

“While some car insurers have started to work on their omnichannel experience by thinking about search, web and email experiences for customers, there is still a lot of work to be done,” Farnfield said.

“It is also important for car insurers to combine online and offline channels, as customers who start their journey digitally often have to repeat information to contact center agents because data and information that should be readily available to contact center agents is not.”