Insurance customers may have experienced receiving a message from their insurer before a storm or downpour advising them on what they can do to prevent damage. However, not all insurance customers have experienced this service. According to an analysis by EPSI Rating Denmark, only one in three customers has received advice on how to prevent damage.
“It is everyone’s interest to minimise damage. Therefore, every claim journey should begin with prevention,” says Claus Heuck, Market Manager for Insurance & Pension at Nobly.
Although both insurance companies and customers benefit from damage prevention, the majority of Danish insurance customers do not receive preventive information from their company. Alternatively, they are not sufficiently informed.
Utilize customer data to the fullest extent possible
When pricing insurance, insurers rely heavily on data to set the premium. For example, if you live in an area with a higher risk of water damage or burglary, the price of your insurance will be adjusted accordingly. But according to Claus Heuck, customer data holds great unfulfilled potential for damage prevention:
My impression is that most insurance companies are doing something about damage prevention to some extent. But in general, insurers should become even better at putting together their data from pricing insurance to proactive customer advice. There is great potential in using data to communicate with customers in a personalised way to help them prevent damage.
Personalised damage prevention
Looking at the gap between the lowest and highest percentages of insurers’ claims prevention efforts, there is a 30 percentage point difference between the bottom and the top in terms of whether customers have experienced claims prevention advice from their company.
“Some insurers do not have the same opportunities as other companies to do targeted damage prevention. They may primarily have the ability to send out general loss prevention advice to their customers. The difference depends on how well granulated the companies’ data is and how skilled and fast they are at using data to provide relevant damage prevention information to their customers,” Claus Heuck says.
Great customer communication is about communicating directly and clearly to your customers, and at Nobly we are experts in implementing Customer Communications Management (CCM). We apply Hyland’s customer communication solution Content Composer, which enables the automation of personal damage prevention. Please contact us to learn how we can help your company achieve the many benefits of claims prevention.
About the analysis from Epsi Rating Denmark
EPSI Rating Denmark conducts independent and regular customer satisfaction surveys in various sectors such as banking, pensions and insurance. The analysis of the Danish insurance industry is from 2021 and based on 4,109 interviews with Danish private customers.