How data-driven personalisation is rewiring the insurance industry

 

Insurance firms have been urged to differentiate themselves by providing customised solutions and personalisation aimed at enhancing customer loyalty.

Jesca Karegua, Marketing Manager at First Assurance, said that with numerous players in the market, such customised solutions not only enhance customer satisfaction but also play a critical role in creating a competitive advantage.

In an Interview, Ms Karegua said the personalisation trend is set to accelerate as technology evolves and customer expectations continue to rise.

She observed that for underwriters to effectively leverage consumer data to personalise their insurance experiences, several systemic barriers need to be addressed.

“While 81 per cent of insurance companies have access to third-party or behavioural data, only 12 per cent possess the advanced analytics capabilities needed to utilise that data effectively,” said Karegua.

This, she said, “Means that while most insurers have the raw materials for personalisation, the vast majority lack the technical skills and platforms to act on it.”

Karegua, however, said growing concerns around data privacy and the fairness of AI decisions continue to affect customer trust.

She argued that for decades, buying insurance was a simple, transactional process where one would pay their premium and file a claim if something went wrong.

Today, she said that the transactional approach to insurance is no longer viable.

“With consumers now accustomed to the instant, personalised service of platforms like Netflix or Amazon, many customers now expect their insurance experience to be just as intuitive, seamless, and tailored as a modern e-commerce checkout,” she said.

To meet these expectations, Ms Karegua said insurers are rapidly adopting Artificial Intelligence (AI), with recent statistics revealing that nearly 80 per cent of insurance companies are using AI technology to improve pricing, accelerate claims processing, and deliver personalised experiences.

Other insurers are using data analytics and behaviour-based insights to create tailored policies that match individual risk profiles, rather than one-size-fits-all products.

For instance, she said First Assurance has been rolling out products designed to meet the specific financial and lifestyle needs of individuals and Small and Medium Enterprises (SMEs).

“Recognising the critical role of SMEs in our economy, we launched First Afya Biashara to eliminate the hurdles that businesses with teams of 3 to 19 employees have traditionally faced while seeking insurance,” she said.

Ms Karegua said for individuals and families, the company has a First-Med Cover that provides a comprehensive yet modular approach to health, allowing clients to personalise inpatient and outpatient benefits, including dental, optical, and maternity care.

“The company has also diversified its portfolio with enhanced motor products that not only cover basic accidental damage, but that also include protection against malicious damage, fire, and theft, as well as a travel insurance product, specifically crafted for the frequent flier with a wide array of benefits suited for global destinations,” she added.

Karegua also said that although obstacles still remain, the trend toward personalisation is unstoppable, with the most successful insurers of the future being those that can successfully harness data to deliver intelligent, ethical and meaningful customer experiences.

“When done right, personalisation does more than just boost conversions; it builds lasting loyalty in an industry that was once defined by its indifference,” said Karegua.