How insurers could use AI to attract younger customers
As industries adapt to younger, tech-native generations entering the economy every day, it becomes more imperative that companies learn how to attract young new customers. An increasing number of people are now more likely to switch insurance providers for more digital options, insurance companies are embracing cutting-edge technology to appeal to the tech-savvy Gen Z and Millennial customers.
With digital expectations at an all-time high, insurers are turning to innovative solutions to cater to the needs and preferences of their younger customers. For this reason, the insurance industry has already begun to see a rise in tech-driven innovation that will reshape the insurance landscape as we now know it.
Laggard no more
The insurance industry is known for being laggard when it comes to adopting technology, automating processes and innovating. In fact, in 2021, despite an increasing rush of insurtech to the industry, only 16% of insurers were categorized as being technology innovators or early adopters. The industry has done a lot to catch up to others. For example, insurance has started to adopt artificial intelligence among other emerging technologies to optimize and automate various aspects.
How AI is helping
As the insurance industry looks to digitize, AI is empowering companies to shake up legacy systems and complex traditional business processes that have plagued the industry for so long. As AI becomes more mainstream, more consumers have come to trust and even expect these solutions. For instance, when it comes to auto claims in particular, 79% of consumers trust an entirely AI-powered process.
Insurance companies are infusing AI into every aspect of the business from chatbots and virtual assistants to completely touchless claims processes start to finish. However, the biggest driver when it comes to the use of AI to attract young people is the ability to personalize each experience. Using AI, companies can collect and analyze customer data to provide tailored offerings and targeted promotions based on customer behavior, preferences, and risk profiles. This resonates with Gen Z and Millennials who value personalization specific to their unique needs.
AI is also revolutionizing the way companies harness digital self-service capabilities especially with younger customers. The digital transformation of claims and movement toward a “touchless claims” process provides an unprecedented level of convenience and autonomy for policyholders. This allows them to effortlessly access their claims information online to communicate with adjusters, shops and even rental car agents to track and process their claims with ease.
Embracing mobile magic
In addition to embracing AI advancements, insurance companies are recognizing the significance of the smartphone era by prioritizing the development of intuitive mobile apps.
Integrating with online portals, these apps empower policyholders with access to their coverage details, streamlined claim filing options, and convenient payment management – all available at their fingertips. By ensuring mobile accessibility, insurers can effectively cater to the needs of on-the-go younger customers, thereby fostering customer retention and engagement.
Younger customers also gravitate to companies driven by transparency and communication. Technology, like online portals, mobile apps and even social media, enables insurance companies to communicate with customers directly. By establishing a strong online presence, companies can meet these younger generations on the platforms that matter most to them to share company updates, industry trends, and educational insights. Engaging with customers in this way helps foster strong relationships with this target demographic.
Looking ahead
The insurance industry, once perceived as a laggard in tech adoption, is now witnessing a transformative shift driven by digital expectations and the need to attract younger customers.
While many insurance companies are still on their journey to digitization, the integration of AI technology has been a game-changer within the industry. These once skeptical organizations have come to recognize the immense value of technology and its appeal to younger demographics. With each step forward, the insurance industry propels itself towards a modern, digitally-driven future.
