Customer acquisition in insurance can become easier and cheaper. Swiss Re's motor telematics solution can help ease customer acquisition and lead to profitable business.
Acquisition of new customers is not an easy task
Beginning is difficult when it comes to insurance. Customers want easy to acquire insurance but are not keen to spend time on acquiring it. It's not easy to create a great customer experience when purchasing insurance. A positive first experience can create a lifetime of profitable business and result in a loyal customer who promotes your brand, brings new customers and moves business to your company. A negative experience can result in a detractor.
Swiss Re's motor telematics solutions make convincing customers easier and bring you loyal customers for years to come.
Onboarding new customers
Insurers need to develop attractive value-adding insurance solutions while simplifying and digitalizing the onboarding process to successfully attract today's customers. Telematics-based motor insurance products have a positive impact on insurers' combined ratio and they are a great way to start enhancing your customers' experience and creating a cheaper digital acquisition strategy.
A try-before-you-buy (TBYB) option – allowing customers to test a telematics solution before making a buying decision - makes it easier for customers to select your insurance offering. It removes the early hurdles of acquiring customers: it is free of commitment but provides them with an opportunity to familiarise themselves with the product and a chance for you to win them over by offering a flavour of the experience your brand can offer. Studies, like the Ptolemus UBI report, also show that TBYB is a more efficient acquisition tool than price comparison websites because it allows insurers to quote drivers on more predictive factors, supporting the risk selection process.
Pay-as-you-drive (PAYD) and Pay-how-you-drive (PHYD) products have proven to be a great way to attract new customers with a simple, easy and value-adding proposition that customers want (like vouchers, post driver coaching and gamification). They also lend themselves to a fully digital customer experience making it easy and hassle-free for today's digital customer to buy them.
Cannibalisation can be avoided
Many insurers are concerned about cannibalising their own portfolio, i.e. converting an existing relationship to a less profitable one due to discounts/cash backs offered to good drivers, rather acquiring new customers. This concern is unsubstantiated for three reasons.
- Existing customers who are interested in telematics might seek for alternative offerings elsewhere
- New customers that are interested in a telematicsbased product may not be interested in your traditional products anymore
- Proper segmentation and a true understanding of the risk profile and potential value of each customer can help you target the right customers with the right offerings. Swiss Re's focused scoring and analytics enables the design and targeting of customers and solutions to ensure you maximize your profitability.
Swiss Re telematics to improve your customer acquisition
Swiss Re telematics solutions and go-to-market support enable you to differentiate your value proposition and crack the challenge of customer acquisition.
For many insurers, setting up telematics capabilities can be a resource-intensive, complex and costly process. Challenges include compiling vast amounts of data to develop scoring capabilities and building up know-how and expertise. However, the opportunity costs of missing out are higher than the development costs.
In collaboration with our strategic partners, Swiss Re has built up comprehensive telematics capabilities that help fast-track your development and minimise your investment today and in the future. We are continuously developing additional expertise and technology to provide you with an end-to-end telematics solution in return for reinsurance. Our global team can help you turn telematics into an effective tool for client acquisition and keep you ahead of competition.
Get on board and let's be smarter together.