P&C insurance is an old and stable line of business. As long as people own items, and as long as there are risks involved with that ownership, there will be a need for some kind of insurance.
Reputation has become the No. 1 driver of auto insurance purchases, according to the 2018 J.D. Power U.S. Insurance Shopping Study, and many P&C insurers are staking that reputation on their online presence.
Property and casualty insurance has operated in a remarkably consistent fashion for many decades. In doing so, the industry has relied on the consistency of certain lifestyle patterns and choices from most or all of its insureds.
In a 2011 article in Insurance and Technology, enumerated several big technological changes in the insurance industry since 2001, including the rise of big data, the ubiquitous nature of cell phones and social media, and an increased emphasis on data security and privacy.
Traditionally, marketing focused on introducing customers to brands, products and services, then directing them toward sales staff for purchases and relationship building. In the digital world, however, marketing plays a key role in the entire customer lifecycle, at CIO stresses.
Until very recently, the insurance industry had “remained unchanged, untouched by innovation, for a hundred years,” Lemonade CEO and cofounder told David Gogel of in December 2016. And while some insurance participants saw the industry’s longevity as a sign of success, innovators like Schreiber saw an opportunity for major disruption.
Direct to consumer (D2C) sales channels are proliferating, as P&C insurers strive to meet customers where they are. D2C provides an opportunity to increase sales and improve customer retention — but it demands a different approach than older tactics, which benefited from a sole focus on the bottom line.
“Most insurers offer a digital insurance mobile app that provides digital proof of insurance and a way for customers to pay their premiums or file claims,” wrote for Mobile Business Insights in 2016. “These features are all common now. Insurers that don’t offer similar tools are already behind.”