From policies to personal connections: How personalisation can transform insurance

This article is part of a wider series on personalisation, want more? Click here to get the Hi Mum! Personalisation Playbook.

Insurance companies have traditionally struggled to engage customers regularly and build meaningful relationships. For many, insurance feels intangible and complicated, a necessary expense rather than a product that adds real value. This emotional disconnection creates a challenge: how can insurers transform their offerings into experiences that customers genuinely appreciate and value?

Personalisation, driven by thoughtful UX design, is the key to bridging this gap. By understanding and addressing individual customer needs at every touchpoint, insurers can create engaging, relevant experiences that foster trust, loyalty, and long-term retention.

Personalisation is the key to engaging customers and building loyalty

With comparing and switching easier than ever, customers are shopping around more frequently for the most cost-effective option. The opportunity for insurers lies in creating digital experiences that go beyond price to offer real, personalised value.

According to a Gallup poll, customers who feel engaged purchase 22% more products and stay with providers four years longer than those who don’t. Personalisation isn’t just a "nice to have”, it's a driver of both loyalty and profitability.

Consumers are increasingly comfortable with their data being used to deliver hyper-personalised experiences

Personalisation relies on data, and customers are increasingly open to sharing it. Our consumer study found that 62% of respondents believe sharing data is a fair trade for more personalised experiences, and 59% are willing to share even more for greater value.

From our research, we found that customer frustration lies not in the sharing of data itself but in how data is collected. Insurers that better utilise existing customer data and form partnerships with third parties can reduce these pain points while delivering highly tailored experiences.

Thoughtful UX design is essential to driving personalised and seamless experiences

Personalisation within insurance starts with understanding customers' unique needs. This requires optimising key UX touch points to provide tailored, intuitive experiences.

1. Onboarding and data collection: Customers are often frustrated by repetitive forms or excessive data requests, this is compounded when insurers already have access to similar information. UX improvements here can make a huge difference. By using pre-filled forms, dynamic questioning, or third-party data partnerships, insurers can streamline onboarding while showing customers they respect their time and effort.
2. Policy selection: Many insurance products still feel generic, but with personalised UX, insurers can guide customers to the right coverage. Interactive tools, like recommendation engines based on lifestyle and preferences, make it easier for customers to find policies tailored to their needs.
3. Claims processes: Claiming is one of the most critical touch points for insurers. By using AI to automate document verification and provide real-time updates, insurers can improve speed and transparency. But it's equally important to maintain a human touch during stressful situations. A well-designed UX journey can blend efficiency with empathy, ensuring customers are able to speak to a human when it matters the most.
4. Ongoing engagement: Insurance shouldn’t feel like a "set it and forget it" product. Regular, meaningful engagement through personalised dashboards, proactive reminders, and contextual rewards can keep customers connected. For example, we are starting to see health insurers using data from wearable tech to suggest wellness tips or offer premium discounts for meeting fitness goals.

AI enables insurers to analyse vasts amounts of data quickly

Advances in AI are transforming how insurers approach personalisation. By analysing vast datasets quickly, AI can uncover insights into customer preferences and behaviours, enabling hyper-personalised policies, premiums, and digital experiences.

For instance, AI can help insurers identify key moments where personalisation matters most, whether it's a digital self-service option for a quick policy update or a human agent stepping in during complex claims. These insights ensure every touchpoint is optimised for maximum customer satisfaction.

Personalisation is important, but so is a human touch

While AI plays a critical role, personalisation isn’t about removing the human element. Instead, it’s about freeing up brokers and agents to focus on what they do best, building relationships and providing empathetic support.

During high-stress situations, such as claims, customers need more than efficiency; they need reassurance. By automating routine tasks, insurers can allocate resources to delivering exceptional, bespoke human experiences when it matters most.

For insurers ready to embrace personalisation, the journey starts with understanding your customers and mapping their needs:

1. Start with research: Conduct UX research to understand customer pain points and priorities.
2. Identify key touch points: Map the customer journey to highlight where digital efficiency or human intervention will have the most impact.
3. Leverage Data Creatively: Use partnerships and existing customer data to reduce friction and deliver personalised experiences.
4. Experiment with Use Cases: Pilot small-scale personalisation initiatives to build your capability and iterate based on results.

Ready to unlock the full potential of personalisation? Reach out to Erin at [email protected] to explore how we can help.