Winning the insurance price war; Focus on loyalty

Winning the insurance price war; Focus on loyalty

In the increasingly competitive insurance market, companies grapple with the challenges of high acquisition costs, customer loyalty, and trust.

Cherokee Mahoney
0 min read
March 23, 2023

The rise of comparison websites and heightened consumer awareness make it essential for insurers to focus on three main areas: price, loyalty, and engagement, in order to foster trust and satisfaction.

Dealing with Price 

Price is a major factor in purchasing decisions, with a 2020 Deloitte report revealing that 75% of insurance customers consider price as the most important factor when purchasing insurance. Insurers must find innovative ways to accommodate rising costs without burdening customers, and this is where efficiency, automation, and customer retention become crucial for cost-saving measures.

The magic of loyalty

Establishing customer loyalty in the insurance industry is no easy task. Insurers need to offer additional benefits and exceptional customer service to create a loyal customer base and shift the perception that they penalise rather than reward loyalty. It’s worth noting that studies show a mere 5% increase in customer retention can lead to a 25-95% increase in profits.

Driving engagement

Engagement poses another challenge, as many customers struggle to identify their provider and access information. By improving communication and making information more accessible, insurers can significantly enhance customer engagement. A 2021 survey found that a staggering 67% of consumers would switch providers if offered better digital experiences.

In today's world, technology plays a vital role in increasing engagement, especially in industries like insurance. It's a bit of a challenge, as many customers find it difficult to connect with their providers and get the information they need. By using better communication tools and making info more accessible, insurers can really make a difference in customer engagement. 

Make insurance mobile

A well-designed insurance mobile app can address these challenges head-on, effectively impacting price, loyalty, and engagement. Custom mobile apps tailored to a company’s processes can boost efficiency in data collection and processing, resulting in cost savings for internal teams and more accurate pricing for customers. In fact, a 2019 study revealed that mobile apps could save insurance companies up to 20% on their operational costs.

By offering a convenient platform for managing policies and providing value-added services, an app that meets customers’ needs can have a substantial impact on loyalty, making customers feel appreciated. Research indicates that customers who use their insurer’s mobile app are 60% more likely to renew their policy.

Insurance mobile apps also have the power to centralise and visualise customer interactions, providing efficient contact points such as instant messaging and targeted messages. When insurers offer a platform optimised for customers’ primary devices, customers feel valued, and their loyalty increases. A recent study discovered that 85% of customers want to interact with their insurance provider through digital channels. This has been evidenced in our work for WPA as 90% of their cash-plan claims are now made through their mobile app.

A well-designed mobile app plays an instrumental role in addressing price, loyalty, and engagement challenges, assisting insurance companies in winning customer trust and improving satisfaction. With the right mobile app strategy, insurers can gain a competitive edge and foster long-term relationships with their customers.

Get in touch today to discuss how we can help you create an engaging and user friendly digital product for you and your clients.


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