Customer proposition - written on 12 July

Building Proposition keeping customer experience at the core

Insurance needs are evolving but have not changed fundamentally, customer want to protect what they value. This they want to do through simple product that they can understand or complex product which some one can explain to them, with sufficient transparency to compare different offerings. Understanding buying behaviors and emotional triggers are key to tying these concepts together into building proposition based on 360 degree view of customer.  In this article we will look at some of tools used by companies globally

·         Progressive insurance company  uses telematics to empower their customers to select options to custom fit  their needs and budget through program called “Name your price tool”

·         Achmea in Netherlands and Pru health in UK are helping customer live healthy life style with advice, guidance and benefits in form of lower premium. Discovery (SA) has a program specifically to cover HIV Positive customers.

·         Even our own “AEGON” has established new direct insurer based on facebook called Kroodle, initially offering mass market P&C products.

A close look at these propositions shows that these companies have driven proposition based on customers ‘moment of truth’. Many customer across globe find insurance products difficult to understand, such proposition give a genuine differentiation to these products.

Actions points for creating such propositions:-

1)      Move from product development based on competitive positions or distribution demands to customer needs basis

2)      Apply customer insight to rationalize your existing product portfolio and match product segment to identify gaps in product matrix

3)      Give customer greater control of pricing and other parameters( if a customer promises to be healthy and his medical record shows so can his/her premium be reduced from next policy anniversary)

4)      Stay agile and re-asses customer needs frequently – including need and behavior questions in selling and servicing. (give customer chance to change his/her  policy anniversary or SA in case he becomes a father or buys a house )