How Insurers Can Up Their Game Through Gamification

The blog discusses how the insurance sector can leverage gamification to boost customer engagement, sales performance, and loyalty. Gamification can assist customers in purchasing the right products through data visualization, aid customer acquisition through interactive contests and mini-games, reduce claims by promoting healthy habits through rewarding apps, foster brand loyalty via loyalty programs with point-based rewards, and educate customers/staff about complex products in a simplified, fun way. By tapping into psychological motivators like competition and accomplishment, gamification can transform tedious insurance processes into engaging experiences, ultimately creating long-lasting business value for insurers.

Gamification is not just a buzzword but one of the most powerful digital levers to influence customer behavior. With its engaging design elements, it can transform a tedious task into a fun process. The insurance sector can harness gamification to boost customer engagement, sales performance, and customer loyalty.

Let’s see how.

Assisting Customers in Purchasing the Right Product

In a typical insurance purchase process, customers determine the appropriate product considering the level of their risk. However, the challenge lies in customer’s inaccessibility to historical data for similar customers for the same product. Gamification can be a big game-changer in this scenario. It can collate and illustrate the larger customer data in a game format which customers can quickly access to reach their final purchase decision.

The risk of under/over-insurance is a common issue customers face while making an insurance purchase. In such cases, Gamification can help the customers by laying out the existing data and information for similar purchases. This way, customers get the appropriate product at the lowest premium available.

Customer Acquisition

Insurers can harness gamification to acquire new customers engagingly and innovatively. For example, insurers can use gamification to provide customers with information about different insurance plans. Health insurers can leverage health awareness quizzes to educate customers regarding their best available plans. Likewise, interactive contests can be utilized to get the contact information of the participants. Later, this data can be used to target potential leads. Insurers can also harness mini-games to reward users for engaging with their brand. Further, users can unlock special offers on various insurance products once they complete the game.

The gamification method taps into psychological principles around motivation and gratification which insurers can exploit to educate customers about their products/services.

Reducing Claims

Many leading insurers are leveraging gamification to raise awareness for healthy living and habits. They are creating programs using gamification apps to help companies improve their employees’ health and well-being. For example, an activity tracker to record the daily activities of the employees so that they can meet their daily walking goals and earn out-of-pocket medical expenses up to a certain limit. It sparks off competition and accomplishment among users who meet their goals and allows users to progress over time. In the longer run, it indirectly helps insurance companies reduce the claim amount.

Fostering Brand Loyalty

Businesses have a 60% to 70% chance of selling to an existing customer, while for a new prospect it’s just 5% to 20%. - Forbes

Gamification is an effective tool for companies to engage their customers and foster brand loyalty among them. Interactive experiences can be offered to existing customers through mobile applications. Loyalty programs with point-based rewards can be introduced to reward customers for the completion of tasks, like filling out a health questionnaire or completing ten thousand daily steps. When customers are engaged and invested in the brands, it directly leads to higher sales.

Educating Customers and Staff

Insurers can use gamification to train customers about the best-suited products. In addition, it can also make their staff/agents aware of their current products. Generally, some insurance products are so complex that customers struggle to comprehend their benefits. Insurers can use gamification to educate their customers about complex products in a fun and simplified way. Here, gamification can also assist insurance agents in determining the appropriate demand for specific products.

Gamification has immense potential to create long-lasting business value in the insurance sector. However, it can be achieved only when it draws sufficient attention from insurance carriers worldwide.

How can you empower insurance products through gamification? Contact us to learn in detail.