Today's life and pensions insurers have the tools to make every customer feel like a VIP. In this business, that's exactly what they are. As I touched on in my blog about The Experience Economy's Impact on the Life Insurance Market personalisation is essential for ongoing success. A "one-size-fits-all" approach simply doesn't cut it anymore, especially when today's customers are conditioned to expect tailored experiences in every interaction.
Just look at the retail, news, and hospitality sectors; they're miles ahead in this respect. My supermarket loyalty card knows I prefer extra-sharp cheddar and pale ale and sends me vouchers accordingly. News sites are aware that I follow Liverpool's title hopes as well as the latest trends in insurtech. These industries excel at using data to deliver an emotionally intelligent service that's relevant and timely.
Life insurers must follow suit in order to maintain their competitive edge and ensure their customers feel valued. We're in a business built on long-term relationships – 25 years or more, in many cases. During that time, customers experience significant life changes: marriage, children, house purchases, career growth, and retirement, to name but a few. The reason someone took out a policy a decade ago may no longer be relevant. Yet the relationship with the insurer often remains static. It's time we changed that.
Insurers are sitting on a goldmine of data, and with AI and machine learning (ML), they now have the tools to harness that data and anticipate what customers will need next. This creates immense value for both customer and insurer.
Here's how personalisation drives results across the policyholder lifecycle:
1. Fosters stronger customer relationships
Insurers can use data to identify pivotal life moments and offer timely, tailored support. A marriage might prompt a joint policy. A divorce might call for financial re-evaluation. And as retirement nears, customers want options, not silence. You can't help customers prepare for retirement and then vanish when they get there. According to a study by Ernst & Young, 70% of customers are willing to share personal information in exchange for lower premiums and personalised insurance products.
2. Improves engagement
Gone are the days when policyholders took out a pension and didn't hear from their provider for 20 years. GenAI and predictive analytics can power personalised and timely touchpoints that match each customer's preferences – be it email, WhatsApp or mobile app. For example, a 55-year-old, married man who has worked for the same company for 20 years, moved house multiple times, sky dives on weekends, and prefers digital-only contact should receive communications tailored to his specific profile.
3. Delivers satisfaction to the consumer
People don't ignore messages that speak directly to them. If it's personalised and relevant, they'll read it. If it's generic, it's probably headed for the bin. Life insurance must shift from a one-off transaction to an ongoing, high-value service. That's where personalisation shines. According to a McKinsey report, businesses that prioritise personalisation can increase their revenues by 10% to 30%.
4. Builds trust
Trust is the foundation of our industry. If you can say to your policyholder, "I've noticed your contributions aren't quite on track for your retirement goals – let's adjust," you're showing care, expertise, and accountability. That's how long-term trust is earned.
5. Supports retention
Retention should be proactive not reactive. Personalised outreach, reassessments, and even offering additional coverage without formal underwriting are ways to maintain engagement and show continued value.
6. Enables tailored services and products
AI lets insurers deliver value beyond price. Value isn't just about the cheapest premium – it's the reassurance of being looked after. Just like when you pay more for a car from a brand known for excellent aftercare, policyholders want comfort, service, and confidence they'll be supported when it matters most.
7. Creates psychological value
People want to feel special, looked after, important, and valued. That emotional connection improves loyalty. It's not just good business – it's good psychology. According to a recent McKinsey study, 76% of consumers are more likely to purchase from companies that personalise and tailor their experience.
8. Adapts to changing needs across life stages
Life changes. And so should insurance policies. From student loans to school fees, first jobs to final pensions – life doesn't stand still. Neither should insurers. Major life stages offer a chance to provide guidance and show value. According to Accenture, 91% of consumers are more likely to engage with brands that provide relevant offers and recommendations.
The Personalisation Advantage
Insurers today have more data at their disposal than ever before — and the tools to turn that information into personalised experiences. With solutions like Sapiens DataSuite, it's easier to leverage actionable insights, refine engagement strategies, and make faster, smarter decisions.
In a customer-first world, personalisation isn't just a nice-to-have — it's a strategic advantage. Insurers who embrace this opportunity will be better positioned to meet evolving expectations and build lasting relationships that future-proof their business. The data is there. The opportunity is clear. It's time to turn insight into impact, one personalised experience at a time.
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