What is the impact of Marketing Automation in the insurance industry?

Last Update: 04 March 2024
What is the impact of Marketing Automation in the insurance industry?
What is the impact of Marketing Automation in the insurance industry?

Marketing automation has transformed the way insurance industry engage with their customers, streamline operations, and grow their businesses. Insurance companies can make more efficient campaigns and improve their customer experience with marketing automation.

However, these are just the general aspects of marketing automation. In this article, we’re going to see how marketing automation helps insurance businesses. We’ll explore how marketing automation helps these businesses (exactly like how we did in this article for e-commerce industry)

Let us take a closer look at some of the most common marketing automation needs that insurance companies have.

Policy Exipration Reminders

A policy expiration reminder is a message sent by an insurance company to policyholders to remind them their insurance policy is about to expire. It’s a proactive reminder to policyholders that their policies need to be renewed or extended before they expire.

In most cases, policy expiration reminders include important information, like the policy expiration date, the steps to renew or extend the policy, and contact info for the insurance company or agent. In these reminders, we want to make sure policyholders know their policies are about to expire so they can make informed decisions.

Sending timely reminders helps insurance companies ensure continuous coverage for policyholders. Furthermore, insurers may also use policy expiration reminders to offer policy updates, enhancements, or new coverage options to policyholders.

Using marketing automation, you can send policy expiration reminders through email, direct mail, text messages, or online account portals. There may be differences in the timing of these reminders depending on your insurance company. Usually, policy renewal reminders are sent several weeks or months before the expiration date so that policyholders have time to evaluate their coverage needs, compare options, and renew.

Renewal Offers

In insurance, renewal offers are special incentives or promotions for policyholders when they renew their policies. This is to get policyholders to renew with the same company for another policy term. There are different renewal offers depending on the insurance company, the type of policy, and the specific terms.


You can get a renewal offer in a variety of forms, like:

  • Premium discounts: Insurance companies might give you a discount if you renew your policy. This can be a percentage off the regular premium or a fixed amount reduction. It’s an incentive for policyholders to stay with the same insurance company.
  • Additional Coverage Options: Some insurance companies let you add or enhance your coverage at renewal. Depending on the policyholder’s changing needs, you might offer additional riders, endorsements, or policy upgrades.
  • Policy Enhancements: Insurance companies sometimes add new features or benefits to their policies. Enhancements can include expanded coverage limits, increased policy limits, or additional services to make the policyholder’s coverage more valuable.
  • Loyalty Rewards: Some insurance companies give loyalty rewards to customers who keep renewing their policies. Benefits might include increased coverage, priority claim handling, or exclusive discounts.
  • Waived Fees: Insurance companies sometimes waive certain fees for policy renewals as a thank you. It could include waiving administrative fees, processing fees, or fees for policy changes.

A renewal offer is usually communicated to policyholders through a renewal notice. They’re designed to show the insurer’s commitment to customer service, reward loyalty, and motivate policyholders to stay with them. Using a marketing automation platform, these offers can be sent automatically. You can increase renewals by 30% by sending automated, personalized offers to users.

Other Incentives

In the insurance industry, incentives are rewards, benefits, or special offers provided to policyholders, agents, or other stakeholders. They’re designed to motivate people to take certain actions or achieve certain goals. These are some common types of incentives in insurance:

  • Incentives for policyholders: Insurance companies may give policyholders incentives to buy or renew their policies. Premium discounts, cashback rewards, gift cards, and other financial benefits are some of the incentives. As well as attracting new customers, they keep existing ones. 
  • Referral Programs: Insurance companies often have referral programs to get policyholders to refer friends, family, and colleagues. These incentives can take the form of cash rewards, discounted premiums, or special bonuses for each successful referral.
  • Safety and Risk Management Incentives: Some insurers offer incentives for responsible behavior or risk management, like auto or property insurance. Discounts can be given for installing security systems, participating in safe driving programs, or keeping a good claims record.
  • Performance-Based Incentives: Insurance companies can offer performance-based incentives to their employees, agents, or sales teams. Incentives are tied to goals like meeting sales quotas, getting high customer satisfaction ratings, or reducing claim settlement times.
  • Education and Training Incentives: Insurance companies might offer incentives to employees and agents who keep learning. Incentives can include reimbursement for training expenses, access to professional development programs, or career advancement opportunities.

Insurance companies might offer loyalty incentives to policyholders who renew their policies with the same insurer for a long time. Discounted premiums, enhanced coverage options, loyalty rewards programs, or exclusive benefits are some loyalty incentives.

Lapsed Policy Recovery

One of the most common scenarios in the insurance business is reactivating or renewing insurance policies that have lapsed or expired because of non-payment of premiums. Failure to pay premiums within the grace period results in lapsed policies, which lose coverage.

Insurance companies focus on lapsed policy recovery because it’s a great way to reinstate policies, retain customers, and make money.

You’ll know exactly what your customers want if you use a marketing automation platform. You can prepare personalized messages and offers and treat every customer individually so the chance of recovery increases.


Usermost and insurance industry

Usermost is a marketing automation platform for the insurance industry. Our platform helps insurance companies streamline their marketing efforts, enhance customer engagement, and grow their business.

Using Usermost’s marketing automation tools, insurance companies can enhance customer communication, streamline processes, and drive business growth. Our capabilities let insurers deliver personalized experiences, automate policy renewal reminders, capitalize on cross-selling opportunities, nurture leads, and improve customer retention. In addition to Usermost’s flexibility, it also offers features that are specific to the insurance industry, which allows insurance companies to optimize their marketing efforts and boost their growth.