Motor insurance: Acquiring and retaining the right customers in a post COVID-19 world
Motor insurance: Acquiring and retaining the right customers in a post COVID-19 world
Motor insurance: Acquiring and retaining the right customers in a post COVID-19 world
The impact of the COVID-19 outbreak has been devastating for the global economy, and with many countries in extended lockdown, there has been a seismic shift in customer behaviour and business operations.
Insurance is likely to see significant changes to business models in the coming months, with significant impact on revenues across the industry.
The current modus operandi is likely to undergo significant changes as insurers find themselves focusing on these three areas:
- Sourcing new data and projecting recovery: Tracking and using new external/internal data sources to generate insights into behavioral and financial changes of customers will be a key priority for insurers.
- Customer Segmentation: Categorization of population into separate clusters based on parameters such as occupation, age group, employment and financial status, and devising relevant marketing strategies for each segment.
- Pricing Strategy: Devising the right pricing strategies for each segment will be critical for success and we will see a shift from traditional pricing, to usage based or discounted pricing for some segments.
The white paper focuses on the impact of COVID-19 on motor insurance premiums, analysing how insurers may need to evolve business models to continue achieving growth.