Perhaps insurers are investing too much in technology and not enough in their customers: 70% of insurance carriers say they offer their customers a personalized experience, but only about 43% of consumers say they agree, according to TransUnion's latest report, "
This gap is even greater among Gen Z consumers, with just under one-third reporting personalization in their insurance interactions.
Fragmented data, departmental silos and poor data integration are major hurdles for effective personalization efforts, according to the study, and insurers report only moderate confidence in their abilities to accurately identify and authenticate customers across touchpoints.
TransUnion's report highlights that unified, high-quality customer data is key to delivering accurate relevant personalized experiences. However, only 4% of insurers report a fully optimized and integrated source of customer data, and most others still see gaps, according to the study.
"Persistent inflation has heightened consumers' focus on price and value. When customers don't feel engaged through personalization, they're more likely to switch providers, even for modest price differences," said Patrick Foy, senior director of strategic planning for TransUnion's insurance business. "Insurers should be especially concerned that so few Gen Z consumers report personalization, as they represent the future of the market."
Forty-six percent of insurance companies prioritize investments in hyper-personalization, AI targeting, digital transformation and marketing technology modernization, but only 10% prioritize evolving consumer expectations, TransUnion found. One of the biggest challenges to effective personalization was aligning marketing strategy with customers, cited by 33% of insurers.
"Most insurers have a wealth of first-party data, but it remains inconsistent across departments, and few organizations operate from a unified source of truth," said Karen Imbrogno, co-author of the study and manager of market development for TransUnion's insurance business. "As a result, many insurers are operating with an incomplete view of the customer, and you can't personalize to someone you can't see."
