Individuals have a different kind of relationship with insurance than what they have with any other product or service. Though being the most effective risk mitigation tool, it still requires a hard push from insurers and regulators to make people purchase. The thought of insurance could evoke every other emotion except joy in an individual. The main reason for this is that insurance is a futuristic promise that assures compensation when a covered risk event happens. This operates exactly opposite to the strong impulse of scarcity and immediacy bias.
As in any other industry, the persuadable events in insurance could be based on reactive or proactive triggers to encourage positive or discourage negative events. Depending on the intelligence ingrained in the back-end systems and the extent customer data is consolidated, the proactive persuasion events could be personalized to a customer and not just limited to generalized promotion of a new product or program. It could be performed for other persuadable events of the same policy for which the chat is in progress or expand to include policy events from other policies of the customer.
An indicative list of the persuadable events in an insurance policy could be categorized as given in Table 2.
Author(s): Srivathsan Karanai Margan
Publication Date: September/October 2021
Publication Site: Contingencies