To be able to serve our customers well, we need to understand how they think, what their preferences are, and how they behave. However, in the past, getting these sorts of insights has often been an expensive, time-consuming task. It made me wonder if there is a better way. Turns out there is.
Consumer insights drive us
Our partnership with agile research platform Feedback Loop allows us to carry out online consumer research and get results in 3 days. And just as quickly implement the feedback into our product design.
Working with our colleagues Will Trump & Lauren Stephenson, in the iptiQ Behavioural Insights Group, we recently used the tool to try to better understand whether Australian adults fully understand the terminology that insurers use in standard life and health products.
When the results came back 3 days later, we were able to quickly translate the insights into an improved offering that better addresses our customers’ concerns, questions and misperceptions.
When asked about Income Protection, our research shows that nearly 50% of surveyed Australians are unclear or incorrect on whether income protection covers redundancy, and less than two thirds realise that it covers them if they are unable to work due to an illness or injury.
While most respondents correctly understand “life”, “total and permanent disability” and “premium”, they are far less clear in their understanding of terms like “trauma”, “income protection” and “benefit amount”.
Simple is better
These results confirm the challenge that we and the insurance industry currently face. Consumers increasingly buy insurance digitally without a broker, and as a result expect insurers to explain their products simply. Understanding and using customers’ language now matters more than ever. The winning insurers will be those that can strike the fine balance between simplifying language, while complying with the myriad of regulatory guidelines and requirements.
Furthermore, the straightforward approach we are taking to our research matches our customers’ quick and agile approach to making insurance decisions. We focus on understanding the behaviours of customers and applying research quickly into our product and service design. Today, we operate in agile two-week cycles – quick, digital research – speedy product development – rapid but scrupulously-careful testing.
Feedback Loop has to date largely operated in and served US markets, and our engagement with the platform represents its first use in Australia. iptiQ ANZ saw the need to be first movers in the space by harnessing the technology to meet our customers’ needs at a pace that matches their ever-changing requirements.
Ultimately, contemporizing our operations meet our customers where they already are. Constant engagement has been enabled and energized by our digital-led approach and ensures we can make trusted life insurance simpler and more effective, while supporting our customers well into the future.
We look forward to regularly using the platform to deliver on our simple, transparent and easy to understand life insurance mission.