Insurers should target added-value support for better engagement and affordability, says RedArc

Insurers may be better able to offer added-value services if they tailor the added value within their insurance products to the needs of their target audience, says RedArc.

Insurance designed to protect people and their families in the event of life’s challenges can provide more than just financial protection, a fact that many providers have recognised. However, RedArc believes that insurers that make the link between specific insurances and different life stages are more likely to have greater engagement, which in turn means a greater ability to build loyalty and trust with their customer base. In addition, tailoring the type of added-value services they offer, rather than providing a full suite of services, may be more cost beneficial.

Christine Husbands, managing director, RedArc Nurses says: “The industry’s umbrella term ‘added-value services’ is quite general and betrays the huge amount of specific support available. If more insurers added support that was tailored for their customers’ needs, with bespoke elements of third-party support, they’d have an easier time communicating the value.”

Examples of targeted support

  • For example, a woman with pregnancy cover could benefit from third-party expert medical support in understanding a difficult diagnosis for her or her child, and emotional support for any issues that arise as a consequence.
  • Similarly, an individual who is required to do a lot of driving for their job, may benefit from their motor insurer providing support for trauma should they be involved in or witness an accident.
  • Medical insurances could provide emotional support for parents in the event of their children needing treatment. In general children are usually well served by the NHS but parents can feel quite fragile when caring for sick children.
  • Insurers providing cover for care home fees may find their policyholders and their families value support in dealing with geriatric illness and bereavement, as well as practical support in sourcing equipment and local support groups.

RedArc believes that insurers are very focused on paying claims, however whilst this takes away one area of worry, it is only what customers expect. Longer term emotional and practical support is equally beneficial in overcoming the issues, it is usually unexpected and is hugely valued by the policyholder.

Husbands continued: “In most cases, life’s challenges come along when we least expect them, and even the most capable person can be sent into a tailspin, not knowing where to turn for help, what help is available and how to access it. Without support there can be many associated consequences such as the development of mental ill health alongside physical illness, relationships come under strain and many people find themselves unable to cope.

“Insurers are well placed to be the go-to source for support at these times, and by tailoring the added-value support which they outsource, it can be both more relatable for the policyholder and more affordable.”