When consumers think of their insurance company they generally don’t remember “the good times”. It’s the nature of the business. Communication between consumer and insurance company happens most during times of stress; after a car accident, or a house fire, or damage from a storm. Weather is a significant factor in billions of dollars in damage each year. In fact, in 2014 hail alone caused $2.3 billion in damage in the US and 2016 is expected to break a nine-year record due in large part to three storms that hit Texas in March & April.
While large payouts resulting from traumatic national events grab the headlines, it’s the day to day interactions, such as losses from a hailstorm, which impact the majority of customers.
Thanks to advanced location services and precise weather forecasts, insurance companies can do more than offer pleasant claims processing experiences. The Weather Company commissioned a survey to measure the impact weather alerting might have on policy holders. The results were startling, a full 52% of survey respondents reported they would take action if notified of an impending weather threat. In the case of a hailstorm, that would mean moving their vehicle into a garage or another protected area. Hail is just one example where weather alerts would be valuable – consider flooding risk, thunderstorm damage, high winds and more.
The opportunity to prevent a claim by sending an alert a few minutes before pending damage is not only beneficial to the insurer, it cements a loyal relationship with the policy holder. It’s a win-win for everyone involved.
In order to maximize the potential, insurers must take the following into consideration:
- Avoid alert fatigue by using the most accurate weather forecast
- Provide sufficient time to take action by using location services to isolate policyholders who are most likely to be impacted
- Communicate via mobile alerts that will gain attention
Ready to put weather to work for your brand?
Insurers advertising with The Weather Company saw a 72% lift in advertising interaction rate compared to industry benchmarks.