Consumer satisfaction with insurance online experience needs improvement

Up until now, online communication with insurance customers was, in terms of customer satisfaction, significantly lagging behind other industries. As a matter of fact, this is  clearly  an aspect of Insurance business with a good potential for improvement.

In order to cope with rapidly changing market environment, insurance companies will require product  innovation  skills,  new  approach to customer relationship management and a clear vision on distribution and communication channels for the future. Many insurance companies will lack the necessary competences in order to perform the above activities, and for the time being they will need to remain open for sourcing these competences from external companies having more know-how and experiences in the field, writes Gorjan Agacevic & Marijan Mumdziev of Amodo



graph 2

Due to significant growth in social media usage in the last decade, there is no doubt they will play a role in digitalisation of the insurance business, thus should be considered. However, as Amodo research outlined, not every social media channel should be used for the same purpose.graph 3

Social media plays important part in usage based insurance deployments 

Amodo performed a research of 48 existing UBI products currently available on the market, and found that 83% of all insurance companies rely on social media as a communication channel for the UBI products.

Out of available social channels, Facebook is the preferred one (80%) then followed by the Twitter (76%). Facebook is primarily used as a customer service tool and Twitter to raise brand awareness, but less to sell. A smaller percentage of Insurance companies decided to go for Google+ (40%) and LinkedIn (33%). All of these social media channels differ in terms of demographics of the users, user behavior and expectations, etc. insurance companies will have to learn the fast changing “laws” of these channels if they wish to participate and be relevant in an already very crowded and noisy place that is social media.

Depending on the region in which they operate, Insurance companies will have to adapt their digital strategies based on local customer preferences and behavior as well. For example, Twitter and Google+ are popular channels in the United States and the UK, but it are not nearly as popular in Central and Eastern Europe, and therefore should not be considered as a central platform for digital activities in those reagions.

Insurance companies also have to be aware that when it comes to digital and social media, they are among the last to “arrive at the party”, meaning there are already many brands from various industries present in the digital media and they are all competing for customers’ attention.

graph 4

This should not discourage the Insurance companies from entering the digital area – quite the opposite, since it is the insurance companies that with the help of IoT have great potential to be quite useful to the customers, and it is exactly this – a concrete value, that is the most highly sought after commodity online today.

There are many different tactics an insurace company can implement in their digital and social media strategy. Most common ones are, hotline support, educational content, gamification, and others.

Marijan Mumdziev, Partner & Advisor, Amodo
Marijan Mumdziev, Partner & Advisor, Amodo

90% of insurance companies that launched the UBI product also offer hotline support, and 53% of them have also dedicated email address for customer inquiries related to UBI product. Some of the UBI programs, generate periodical reports on the driving behavior progress, which is then sent via email to insurance customers.

One of the key motivators for establishing additional communication channels when it comes to UBI product, is customer education on the new types of product available in the Insurance portfolio.

Gorjan Agacevic, CEO, Amodo
Gorjan Agacevic, CEO, Amodo

This is especially relevant for expectations management, clarification around data privacy and finally pricing mechanics. Some of the other communication methods are also FAQs available on pages of most Insurance companies offering UBI, instant messaging being offered just by a few, messaging through smartphone app and in some cases even establishing the direct telephone line for providing driving improvement suggestions to most risky drivers.

The key to a successful Digital Strategy in 2015, as always, will be finding a unique voice and providing true value. There is a lot of noise in the digital media, but insurance companies with the help of IoT are in good position to become a signal rather than part of the noise.

Comment on this article below or via Twitter: @M2MNow OR @jcm2m


IoT interoperability – Living the dream

Posted on: September 28, 2022

With the arrival of cost-effective Satellite IoT (SatIoT), Systems Integrators are rushing to meet the huge pent-up demand for global solutions that allow asset tracking across the 85% of the planet not covered by cellular networks. They are building fully connected IoT solutions, where mobile assets can be tracked as they move, connecting to an

Read more

Watch the MWC Las Vegas Keynote Livestream on IoT Now

Posted on: September 28, 2022

Catch the top keynote addresses live on IoT Now

Read more

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more

What is IoT?

Posted on: July 7, 2019

What is IoT Data as a new oil IoT connectivity What is IoT video So what’s IoT? The phrase ‘Internet of Things’ (IoT) is officially everywhere. It constantly shows up in my Google news feed, the weekend tech supplements are waxing lyrical about it and the volume of marketing emails I receive advertising ‘smart, connected

Read more
IoT Newsletter

Join the IoT Now online community for FREE, to receive: Exclusive offers for entry to all the IoT events that matter, round the world

Free access to a huge selection of the latest IoT analyst reports and industry whitepapers

The latest IoT news, as it breaks, to your inbox