Cross-product insurance designed with the needs and lifestyles of a target demographic – such as millennials – is the next focus of insurance personalization.
Innovation at Ageas is targeting millennials. The insurer has just launched a new app-based home and travel insurance product which has been designed for the demographic in terms of the cover it provides, in addition to the way policy holders use the app.
“Back Me Up” provides insurance for what millennials value most, and is reflective of their lifestyles. By combining the most relevant elements from traditional insurance products, it has resulted in a convenient, all-in-one lifestyle product.
The app covers mobile phone screen replacement, provides worldwide and UK travel cover for lost items, cancellations, and medical emergencies, and up to £1,500 for replacement keys and locks. The app also provides flexibility by allowing policy holders to select three items to protect against accidental and malicious damage, loss, and theft, with a claims limit of up to £3,000 in total each month.
Insurers have recently started to toy with the way customers use insurance apps. A few months ago Simply Business launched a new ‘Tinder-style’ app that allows customers to swipe through a series of questions to generate a quote. Ageas has followed suit by allowing policy holders to select which three items they wish to protect by taking photos of their possessions and swiping them either in or out of the cover.
This gives users flexibility within the product by being able to select which items are most in need of insurance at any one time. It encourages users to interact more often with their insurance and also encourages them to form an inventory of their valuables. Incorporating the act of “swiping” into the app has given it a modern feel and is in line with the way millennials already interact with their smartphone devices, further tailoring the product.
Personalization is a hot topic in insurance, and Ageas’ creation of tailored cross-product lifestyle insurance for millennials is a new angle on this. The market has seen a rise in insurance “concierge” services which will inform what cover is most relevant for an individual. It is therefore interesting that Ageas has selected the insurance elements that are most important to a particular demographic and combined them into one convenient policy.
Millennials don’t fit into the current standard packaged products on the market today. This is a way of taking the risks insurers already underwrite and combining them into a more meaningful package.
By Danielle Cripps, General Insurance Analyst