Stockholm-based insurtech Greater Than, which also operates in several global markets such as the US and UK, has launched a cloud-based loyalty program product called Enerfy Loyalty, per PR Newswire.

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Greater Than provides AI-enabled solutions to auto insurers, and its flagship product, Enerfy Global, gives precise insights into individual driver risk so that insurers can offer fairer prices to customers while also driving profitability. With Enerfy Loyalty, the insurtech now adds a loyalty program solution for its customers to extend to their users. Insurers will be able to further track and reward safer drivers through Greater Than's app2car solution, which removes the need for in-car hardware to track driving.

Greater Than's new loyalty product will help insurers boost customer experience by increasing engagement and offering greater personalization.

  • Insurers can better engage with their customers via the interactive tool. Through the gamification of the loyalty product — users are incentivized to collect loyalty points with each safe trip made to rise through the different risk levels and consequently reduce their premiums — customers will interact with their auto insurers much more frequently and thus likely become more engaged. This will drive increased customer stickiness at a time when policyholders are demonstrating less loyalty to their policy providers.
  • The loyalty program also enables hyperpersonalization. The customer loyalty product drives greater insights into each policyholder by collecting real-time driving data — this will help auto insurers to better understand their customers' behaviors and preferences, and consequently allow them to tailor the products and services they offer to fit customers' profiles.

The opportunity to enhance the customer experience and reduce costs by using Enerfy Loyalty should be especially appealing to incumbent insurers, as they face increasing challenges to their customer bases from new entrants.

  • Incumbent auto insurers face increasing competition from full-stack insurtechs and product manufacturers. Full-stack insurtechs, such as Root and By Miles, offer lower prices and improved customer experience, enabled by their digitally enhanced business models. What's more, with product manufacturers such as Tesla moving into the insurance space, incumbents face additional threats to their customer retention, as product manufacturers possess deep understanding of both driver behavior and vehicle performance, powered by real-time data capture. Greater Than's solutions provide a way for incumbents to respond to these threats and offer the hyperpersonalization that consumers are increasingly demanding.
  • Greater Than's solutions also enable cost savings for insurers. By using data from Enerfy Loyalty, auto insurers can identify their riskier policyholders and price coverage accordingly. And because Enerfy Loyalty incentivizes safe driving, riskier drivers could be encouraged to change their behaviors, which could translate to fewer or less costly claims for insurers to pay out. And if insurers pass on cost savings to their customers, they're likely to be rewarded with improved acquisition and retention rates.

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