Personalized Product Bundling

Bundling the Right Product with Data Analytics and AI

Goal

Strategic Advantage → Product Innovation → Cost Reduction → Customer Satisfaction →  Increased Revenue and ROI

Challenges

Satisfaction improves among customers who bundle other policies with their homeowner’s policy, contributing to higher overall customer satisfaction with homeowner insurance companies, according to the J.D. Power and Associates. Specifically, 46% of customers who possess a bunch of insurance products, say they “definitely will” renew with their provider vs. 28% of non-bundle policyholders. With a variety of products to choose from, the pressure to retain customers, and consumer expectations for personalized treatment, marketing and selling generic products is no longer an option. For insurance companies this means that finding the right products to cross-sell into customers is a critical success factor.

Opportunities

According to an Accenture study, more than 80% of insurance customers are looking forward to a more personalized experience. Artificial Intelligence is ideal in recommending products and pricing in insurance. With Data-Driven AI models, insurance companies can do more personalized recommendations to consumer as well as to build the appropriate products for segments of clients by optimizing earnings and customer satisfaction. AI can also determine an individualized price based on consumer behavior and historical data. These recommendations can be used in web-based, call center and agent selling scenarios.

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