There are many innovations happening in the insurance industry right now – gamification is one of them.
Gamification is basically the use of game design techniques, game thinking, and game mechanics to improve and enhance non-game contexts. When executed correctly, it can certainly create value beyond added entertainment to dull business processes or possibly even data collection.
Probably not suitable for every single problem an Insurer faces, elements of gamification should guide their thinking about the user interface.
There are some similarities to Gamification and Social Media in that it’s one of those sparkling new technology areas where insurers may struggle to work out their ROI. However, what is certain is that it has become a feature of consumer culture! It is also a tool to drive what Insurers generally struggle more than other industries to achieve – Customer Engagement.
A recent Celent study suggests that Gamification is a developing field of activity in insurance and many have used it for a variety of purposes. Gamification, however, has more lessons for how insurers should think about User Interface:
Compelling Experiences For Clients
Gamification is continuously proving to have an effective capability for Insurers by transforming the ordinary into extraordinary.
Trends are ranging from behavioral science and social networking to wearable tech and pay-as-you-live offerings.
It is a powerful lever for insurers and insurance agents seeking to enrich digital experiences and adopt new customer-centric business models, such as Health Insurer Cigna has experienced first-hand with a few initiatives – like the introduction of their health improvement apps in collaboration with Samsung in 2014.
Cigna CIO Mark Boxer stresses the importance of linking health improvement to tangible, immediate incentives. He says “The elements that make a game powerful are those that drive people to learn and change behaviors,”
Another added benefit is that it gives Insurers and agents the ability to explore opportunities to leverage and share the data that a Gamification strategy can produce. Agents should use that data to improve processes and customer relationships. This data should also be leveraged and used to develop an accurate view of agents’ and customers behaviors and continuing to tailor their Gamification approach to make it more effective and compelling for customers to use.
For Insurance Agents who are seeking to move more interactions to digital channels, Gamification is no doubt a winner. From applications to policy renewal forms and information updates – these are all areas where it can help agents provide a better experience for their customers.
Millennials actually prefer more frequent interactions and richer experiences – these are the people who have shown very little interest in life insurance and has much higher expectations for digital channels.
By using Gamification, insurers can clearly demonstrate their understanding of the needs and preference of millennials. This will lead to a positive and compelling value proposition for these individuals.
Simply put, they will love:
- Simple cues for action
- Clear Feedback
- Easily identifiable markers of progress
- Paths for advancement
- Intuitive user interfaces
This may not necessarily work with older clients, so it’s important that your Gamification strategy is the right use case for the right business issue as well as the right customer niche.
It is imperative to identify how gamification influences behavior. Extensive research into human psychology has shown that the most effective games leverage our natural desire to feel good. It has the ability to induce the release of dopamine, a neurotransmitter which motivates people to act. Therefore it is most important that game experiences must be fun, motivating and educational. It should also have both extrinsic and intrinsic rewards.
The mix of rewards should also be customizable, as every person is motivated differently. For example, some people are extremely competitive, but for others – it just does not appeal to others.
Another example – The methods for encouraging older policyholders to drive more safely will vary from those the way that you entice older clients to exercise.
This is why it’s important to never stop testing, learning and iterating with your customer to gain a deeper understanding of their needs and behaviors
Assist Insurance Agents To Do Better
Gamification can not only help with customer engagement but also help to incentivize safe driving behavior for insurance agents.
It can come through in the form of carrier “agent engagement” initiatives. These kinds of initiatives should offer competition and rewards for insurance agents in selling new products which will go beyond the usual traditional contests.
- Issuing Policies Faster
- Updating Customer data more frequently
- Incentives for completing product education programs
These kinds of initiatives will increase internal efficiencies, increase consumer education and engage more proactively with clients.
The Bottom Line is that Insurers need to get in the game as it’s clear that Gamification is here to stay for the insurance industry. The benefits of it are clear and tangible benefits in terms of customer engagement as well as the bottom-line impact.
- Although not always possible to adopt Gamification in every aspect of an Insurers business, elements of Gamification should guide insurers thinking about the user interface.
- Make sure your Gamification strategy is the right use case for the right business issue as well as the right customer niche.
- Never stop testing, learning and iterating with your customer to gain a deeper understanding of their needs and behaviors when implemting a Gamification strategy