The primary benefits of personalized insurance are:

Streamlining operations and working more accurately with customers. Having a robust customer profile beyond just demographics — think data generated from fitness trackers or social media activities — can help improve service for your customers. Insurers who have a 360-degree view of their customers can deliver faster, more accurate service based on their high level of insight into customers and their needs.
Driving more effective sales. Personalized insurance can have a twofold benefit on sales initiatives. First, many customers are willing to sign up for plans that ask them to share more of their data in exchange for lower premiums — offering this unique service opens up another avenue to potential customers. Second, having greater insight into customer behavior and preferences can improve targeted marketing and sales initiatives. You can now more accurately offer the services people want and develop the products they need.
Improving customer engagement/satisfaction. No one wants to feel like just another number, and with personalized insurance and service, customers feel more valued and appreciated.
Making leveraging data easier. With personalized insurance capabilities and their corresponding data analysis tools, you can easily access self-service reports and dashboards that answer common operational or management questions and provide insights to your executives, underwriters and claims handlers.

Developing a personalized insurance offering

Integrate technology and data solutions. You can't leverage data until you have a way to collect it and analyze it, and that starts with digital insurance solutions. Whether you want to start slow and implement just a digital claims solution or you are looking to completely upgrade to a cloud-based platform, you must have a solid technology infrastructure to even consider enhancing your personalized offerings.
Learn your customers' needs and preferences. Your data is only as good as the insights you gain from it, so you must have a comprehensive analytics solution. A high-quality analytics program will enable you to make data your most valuable asset — one that empowers you to make more accurate decisions, improve product development and ultimately personalize service to the delight of your customers.
Ensure a cross-channel personalized experience. Because personalized insurance relies heavily on data collected from IoT devices and other technology, it's imperative that the customer experience is seamless across these different touchpoints. Whether they are interacting with you on a mobile app, live-chat feature or over the phone, insureds should experience the same level of personalization regardless of the touchpoint.
Provide personalized interactions and responses in real-time. We know customer expectations are high, and that is certainly the case when it comes to communication. Not only do you need to respond to questions, concerns or comments within an appropriate time period, but you also need to do so with a tailored approach.
Focus on service — not selling. While selling a product or service is certainly important, it shouldn't be the main focus. How important is it to provide a positive, seamless experience for consumers? According to HubSpot, "90% of Americans use customer service as a factor in deciding whether or not to do business with a company."

Jeff Wargin is the chief product officer at Duck Creek Technologies. Contact him at jeffrey.m.wargin@duckcreek.com.

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Leveraging personalized insurance to meet customers' needs

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