Gamification in property-casualty insurance streamlines the insurance ecosystem by rolling customers into the risk assessment process.
What do Candy Land and an emerging technology trend in the property-casualty world have in common? They're both games.
While you don't need to break out your backgammon board per se, gamification in p-c lines streamlines the insurance ecosystem by rolling customers into the risk assessment process.
What is gamification? “It's often described as, 'using game elements in a non-game setting,' which is the most boring description of anything with the word 'game' in it I've ever heard," says Seth Preus, founder of Mivation, a gamification software provider. “But fundamentally, gamification is about trying to get people to take action."
The word “game" can imply fun. However, Preus clarifies that while fun can be a byproduct, it's not the goal. “It's about motivation," he says. “Gamification does that through three steps: You want the participant to know, then to want and then to act."
Preus gives the example of an agency attempting to sell more personal articles policies. “Most clients not only do not know that they may need a personal articles policy, they don't even know what it is," he says. “Historically, an agent would get to this need by grilling them, asking question after question. The client starts to feel like they're being squeezed, so their guard goes up."
Gamification enables clients to be voluntarily involved in the information process. “The process is driven by the consumer, so they know it's something they need rather than something you said they need," Preus says.
Certain strategies can motivate the client to be involved. “Instead of having them fill out a form, the agency incorporates a visual—let's say a bridge across a chasm," Preus says. “As the client answers each question, they can see the bridge being built so they can get to the next stop."
Another approach is “comparing the amount of information the client has given with what the best clients have provided," he continues. “Something as simple as, 'Our best clients have a complete risk profile. You've only provided 10% of the information.' And as they answer each question, they can see the percentage increase."
“Once you have the information, you can show them where gaps are," Preus says. “They can click further to learn about coverage for a personal articles policy because their complete information shows they have too much risk in jewelry."
By involving the consumer in the information-gathering process, gamification can ladder a significant chute in the p-c ecosystem.
“One of the biggest challenges that we have in insurance is properly identifying exposure, and we are limited in our ability to do that by the information provided by the client," Preus says. “People don't want to illuminate something that could be problematic, not realizing they're only making it worse. By using gamification to help identify risks and educate clients in a non-threatening manner, we'll get a better match between the client's exposure and the coverage that we provide."
Agencies don't need to reinvent the Wheel of Fortune to implement gamification. “Don't confuse gamification with animation," Preus says. “It's not a video game—you don't have to spend a billion dollars. Start simple."
When crafting the game, Preus suggests walking backward. “First, ask yourself what you want the client to ultimately do. Buy a policy? Give you more information for their risk profile?"
Once a goal has been identified, “consider what you think it'll take for them to act—what will make them care," Preus says. “And then take that final step back and determine what information you need to provide them to feel it."
AnneMarie McPherson is IA news editor.