Key Takeaways: DECAVI-KPMG Insurance Academy

Brussels – 22 May 2025

In a highly competitive and increasingly digitalized insurance market, policyholder loyalty has become both a strategic asset and a differentiating factor. During the DECAVI–KPMG Insurance Academy, experts from the insurance ecosystem explored how insurers can strengthen customer relationships through a mix of personalization, emotional engagement, data-driven marketing, and service excellence.

Retaining a customer is up to 25 times more cost-effective than acquiring a new one. Moreover, loyal customers are not only more likely to renew their contracts, but they also tend to purchase additional products, refer others, and interact more proactively with their insurer. Loyalty programs must therefore go beyond pricing tactics and become part of a broader customer strategy focused on value and trust.

According to a representative of a Belgian insurance company, the insurance industry is facing a paradox: while digital tools have improved accessibility and convenience, customer volatility has increased, especially among digitally native generations. A lack of transparency, complex administrative processes, and limited personalization are key drivers of churn, particularly among younger consumers. Notably, nearly 50% of Belgians have policies with multiple insurers, and one-third cite pricing as the main reason for switching.

Customer loyalty is not just transactional, it is emotional and relational. Drawing on behavioral psychology, several speakers emphasized the importance of creating long-term emotional bonds with policyholders. This means offering consistent and empathetic service, recognizing customer milestones, and creating a sense of community and belonging. Loyalty grows when policyholders feel that their insurer listens, understands, and acts in their best interest.

The shift from product-centric to customer-centric strategies is accelerating. Key building blocks include:

• Hyper-personalized journeys based on customer behavior, preferences, and life stages.
• The use of Customer Data Platforms (CDPs) to consolidate transactional, behavioral, and external data for 360° insights.
• Next Best Action (NBA) and Next Best Offer (NBO) algorithms to tailor communications, upsell/cross-sell efforts, and retention campaigns.
• Event-based triggers (e.g., birthdays, life changes) to increase relevance and engagement.

Omnichannel interaction, from mobile apps to chatbots to face-to-face broker engagement, was emphasized as essential to delivering seamless, integrated experiences.

• Fast and transparent claims handling
• Proactive communication during the process
• Fair treatment and empathetic service

Some insurers are investing in AI to automate and accelerate the claims journey turning potentially stressful moments into opportunities to build trust.

From onboarding to retention, digital solutions are enhancing the customer experience at every stage. Apps, virtual agents, online claims submissions, and loyalty portals allow for convenient, 24/7 access. Some insurers are also developing platforms that integrate insurance and non-insurance services, such as home maintenance, parking, or mobility, building comprehensive ecosystems around customer needs.

Case studies presented during the session included:

• Decathlon’s loyalty program, which rewards both purchases and physical activity.
• Lemonade, an insurtech company that uses instant AI-based claims handling and a “giveback” model, which donates unclaimed premiums to causes chosen by customers fostering community-based emotional loyalty.

Gen Z consumers are particularly sensitive to digital experiences, ESG values, and brand transparency. They expect:

• Immediate access via digital platforms
• Customizable insurance products
• Ethical behavior and environmental responsibility

According to recent surveys, over 50% of Gen Z are willing to pay more for ethical products, and 79% believe that companies should contribute to a better planet. Loyalty strategies that resonate with this group must align with their values and digital lifestyle.

Brokers remain key to maintaining a personalized, human connection with policyholders. Their role in advising, onboarding, and supporting clients particularly during claims provides an irreplaceable layer of trust. Digital tools such as "Hi Broker Connect" help brokers strengthen their digital presence, optimize claims handling, and increase transparency.

An overview of the market by DECAVI illustrated how package offers tailored to both individual and SME segments are being used to improve retention. Insurers like AG, Allianz, AXA, Baloise, and Vivium offer bundled products with benefits such as:

• Free premium splitting
• Discounted rates or cashback
• Additional services (legal advice, doctors online, coaching)
• Loyalty bonuses based on claims ratios

These packages are not only convenient but also reinforce long-term engagement through perceived added value.

Concluding the session, speakers emphasized the “4 Ds” model to drive loyalty:

1. Design: Create meaningful customer journeys with all touchpoints mapped.
2. Data: Centralize and activate customer data to fuel personalization.
3. Digital: Offer seamless and omnichannel digital experiences.
4. Delight: Surprise, reward, and emotionally engage with customers while staying human.

Loyalty in insurance is no longer a passive outcome: it must be designed, measured, and nurtured. In a volatile and digital-first world, trust, empathy, and personalization are more important than ever. Insurers that can embed these principles into their day-to-day operations will earn not only loyalty but advocacy.