As technology related to artificial intelligence, natural language processing, smart home tech and more evolve, business applications are emerging that can have a transformative effect.

From an insurance industry perspective, some of the most exciting developments are those that are changing the way insurers interact with their customers.

Traditionally, insurers don't engage with their customers. They provide a critical safety net, but customers don't think about it until they need it.

Insurers who embrace their unique role in their customers' lives are finding new ways to reach out to them on their own terms and applying technology and data to deliver an exceptional customer experience at every stage of the customer journey.

Insights about customers

Property & Casualty insurers that want to compete and win in a highly personalized, data-driven business climate now have the tools they need to do so. The flow of information from traditional and new sources continually generates insights to help insurers understand their customers better and gauge risks more accurately.

In 2017 and beyond, forward-thinking insurers will look for new ways to personalize outreach, fine-tune services and deliver the right information to the right customers at the right time to win the micro-moment. Technology will provide the data and platforms insurers need to become their customers' heroes.

Keep an eye on the following three technology trends, which have the potential to shape industry outreach and service delivery over the next year:

1. Data-driven personalization gets a boost

Insurers have traditionally lagged behind peers in other industries on using data-driven, personalized outreach, in part, because many struggle with database accuracy. In the past, insurers' contact with customers was limited to claim transactions and renewals, so many companies aren't confident that their data is accurate and up to date, a prerequisite for personalized outreach.

A data cleanup project can restore confidence and prepare the way for data-driven personalization. Any such effort should include securing customer preferences for contact across multiple channels (e.g., email, SMS, social media or voice) and gaining permission to engage customers on an ongoing basis.

2. Insurers continue to find new roles for data

Insurers are finding other roles for data that go far beyond simple outreach. Telematics is transforming the industry as auto insurers increasingly use it to get an accurate snapshot of how their customers actually drive, measuring miles driven, acceleration, airbag deployment, hard braking and cornering. This gives underwriting teams hard data to make sure premiums align with risks.

Property & Casualty insurers are also looking at new ways to use data generated by smart home tech and the Internet of Things (IoT) to prevent losses. Connected sensors can transmit data to insurers in real time, triggering a communication platform to contact customers or their preferred vendors about a situation such as a water leak or temperature change, allowing them to prevent a major loss.

3. The micro-moment becomes the battleground for brands

Google defines the micro-moment as the "intent-driven moments of decision-making and preference-shaping that occur throughout the entire consumer journey." Micro-moments are also becoming the new battleground for brands, as companies seek to position their services in the top spot when customers search for information and make decisions about purchases.

Insurers are reacting by placing personalized information on mobile-friendly platforms, a good first step since so many searches originate from mobile now. But owning the micro-moment requires an omnichannel strategy. For example, the ability to respond to a quote request via an automated voice or text message or deliver a notice to a mobile phone when a claim is processed can be important assets in the battle to win the micro-moment.

Special Reports /

3 insurance tech trends for building customer relationships in 2017

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