Why Life Event Data is the Game-Changer in Modern Insurance Strategies

October 28, 2024 By Julia Borgini

A new job, a new relationship, and moving into a new house are just some of the major events in our lives. Also known as life event data, companies use this information to design marketing campaigns and new products and services. The data makes it easier and more accurate as companies can be confident in the information they use to develop their strategies.

Insurance companies use life event data for the same reasons. They use it to guide and support clients through these events by proactively addressing client needs in a meaningful way for clients. When done correctly, insurers can still earn revenues while supporting their client’s futures and building the lifelong relationships that keep them coming back.

Bringing back the personal touch in insurance

Insurance companies used to know their clients personally, and agents used to talk regularly with clients either on the phone or in person. Advances in technology and the digital experience have disrupted those one-on-one connections as people expect more of a digital-first approach. Companies have also grown in scale and size, and as maintaining those personal relationships is harder to do, they often don’t bother.

All this means it’s harder for companies to align products, services, and conversations around the life events that drive policy changes. Agents and companies don’t know if you’re moving, if you just got a new job, or had your third child. But these periods of change in your life mean updates to your insurance coverage. How can insurance companies keep tabs on you to ensure you’ve got the right coverage and they reach out at the right time to make the updates?

Smart insurance companies use life event data to build customer engagement strategies. They use the data to reach out at the right time with relevant insurance information, making a genuine, personal connection with people.

How life events create insurance demands

Insurance policies are unique to the people they cover, but life events drive common changes for those insurance products and services. Here are a few ways insurance changes for customers during these essential life events.

1. Moving (up or downsizing a home)

Property and Casualty insurance needs change as your property size and value change. It’s a good time to review coverage, add or remove policies, and determine new premiums due to the new location, which may be in a flood plain or in an area with high instances of earthquakes or hurricanes.

2. Changing jobs

A new job means reviewing the Property and Casualty policy based on new income levels or work-related risks. A review of health insurance coverage is helpful here, too, as work-related risks may have changed and require more or less coverage.

3. Having kids

Starting a family requires several insurance coverage reviews, including Property and Casualty, Health insurance, and Life insurance to include the new child. A growing family should also include providing financial support for the child’s future with an annuity or other financial product.

4. Kids getting older

As children age, coverage changes based on their age, whether they’ve moved away to attend post-secondary school, tenant insurance for their off-campus housing, and more. Insurers will want to review Property and Casualty and Life insurance to ensure all options are covered, especially if the children are old enough to take care of themselves.

5. Getting married

Marriage and combining households always spark an insurance conversation as many variables change at once. Probable changes to coverage include:

Property and Casualty adjustments for new housing and the new spouse
Life insurance protection updates
Health insurance reassessment to consider joint coverage
Future financial planning for stable income in retirement or for a surviving spouse if one dies

6. Retiring

Leaving the workforce and enjoying retirement is another big life change that should spark insurance coverage conversations. Life insurance needs will change based on age, health, and change in dependents. Annuities and other financial products must be updated to provide reliable income during retirement. Health insurance coverage will change as people age, and children who are no longer dependent should be removed.

Using life event data successfully in insurance

Successfully using life event data in insurance requires a strategic approach. It’s about more than just collecting the information: it’s about using the data to create meaningful connections and provide value to clients at those crucial moments in their lives.

It starts by anticipating their needs based on personal demographics. Insurers can use the data to predict when the changes will occur, and proactively reach out with advice on new products and services.

However, it’s important to remember that the goal isn’t just to sell more products. The strategy should be focused on helping clients plan for their future. Center messaging on guidance and support, not sales. A client-first approach builds trust and helps insurance companies demonstrate a genuine interest in their client’s well-being, all of which leads to stronger and longer relationships.

Acting as the lifelong insurance guide for clients helps them become an integral part of people’s lives. Life event data provides insights to help insurers discover and anticipate the moments that matter to people. Showing up with educational, relevant, and genuine engagement at those times transforms the relationship from transactional to sincere and trusted.

Planning for business with life events

Life event data provides insurance companies with a powerful tool to reconnect with their clients on a personal level. By anticipating needs, offering helpful guidance, and acting as a lifelong partner, insurers can build deeper, more meaningful relationships with policyholders, ensuring a long and fruitful partnership.

Are you ready to harness the power of life event data in your insurance business? Contact EASI today to learn how our Life Event data can help you create more personalized, timely, and valuable customer experiences.