In a competitive market, how are insurers differentiating themselves from the competition?
With the launch of Quantum Home 2.0 (QH2.0), a follow up to Quantum Auto 2.0, Travelers is turning homeowners’ insurance into an offering that’s carefully tailored to the needs of each customer.
“We’re very proud of how it’s built for the long-term, but the major theme is that not all consumers are created the same,” said Eric Nordquist, senior vice president of personal insurance product management at Travelers. “Our product is now built around a core contract, a core product that we feel very strongly about, but then our agents and our customers can tailor that product offering in a very module way, a very flexible way, to meet the needs of individual consumers.”
For example, a customer with a high-value jewellery collection can increase their limits, while someone who doesn’t file a lot of claims can take advantage of a disappearing deductible over time.
Improving the customer experience was important to the insurer, so features within the offering make it easier for agents to explain policies and claims to clients. Nordquist describes QH2.0 as simple to understand, with documents that are written in plain speak and take less time to review.
“We’re ordering five times more data to make sure that we have the product priced appropriately, but we’ve been able to reduce the amount of screen time by about 30% because we’re doing a lot more pre-fill and things that are consumer-friendly,” explained the SVP.
QH2.0 takes a step forward and away from a complex process that can often befuddle customers.
“The insurance business has a history of having a very complicated structure in that there are surprises when you file a claim and that’s what we’re trying to avoid,” remarked Nordquist, adding that when insurance professionals call something Coverage A, B or C, that can mean little to the average person.
A discount for users of smart-home protective technology is another way Travelers’ enhanced homeowners’ insurance offering moves forward, recognizing the digital innovations taking place in the lives of its clients.
“It’s a growing space and we believe it’s a rapidly growing space, and it will become pretty large over time,” said Nordquist. If customers are taking these additional protective measures in their homes, you might as well find a way to reward them for it in their insurance coverage.
Other product features include new discounts for customers who pay on time and an enhanced water package that can cover sewer backups and hidden water damage.
“Water is an important moment of truth for a customer and it can be devastating. We wanted to make sure that we’re transparent on that coverage so folks can cover what they want,” said Nordquist
