Gamification in insurance – time to evaluate?

Insights | Blog Post
20.10.2022

The basic concept of gamification is not new, it has been around since the 1970s, as we know it, but the word itself wasn’t added to the English lexicon addition until the 21st century. The word refers to incorporating game elements, e.g. point and reward systems, in tasks as incentives for people to participate. In simply words put, gamification is about turning something potentially uninteresting into a game. And it is effective – gamification taps into people’s natural desires for competition and achievement.

Gamification, as we know it today, is the process of using game thinking and game mechanics into nongame environments to create customer engagement and solve customer problems. But it is not a game – it’s about driving the business forward and figuring out different ways to create incentives and motivation.

Insurance is characterized by often complex and abstract products and because of the way that insurance is provided, consumers often struggle to make informed decisions and purchase the proper coverage, which also leads to lack of motivation. Therefore, there’s an opportunity for insurance companies to use gamification to improve the customer experience and use it as a driving force to get people to commit to life insurance and pensions. It’s also about turning insurance into something more appealing – and fun, which could even attract younger generations.

Gamification in the insurance industry

As customer experience has become an important success factor for the insurance industry, insurers must adapt to their customers’ purchasing and decision processes. There’s also a need to adapt to how consumers look for information. Are they most likely to go to Google, ending up selecting products themselves, or do they rather pick up the phone and rely on a 1:1 interaction?

Furthermore, when it comes to educating customers on insurance, agents traditionally play a central role. But instead of depending on agents throughout the process, insurers can use game campaigns to educate their prospective customers or help them select the correct product. The right campaign can help them feel confident in the decisions they make.

A good gamification experience, whether it’s a game campaign or a quiz, taps into a participant’s emotions and gives quick feedback on performance and guides next steps towards new achievements. However, some challenges need to be addressed when introducing gamification. One is giving the user something that is beneficial to them and therefore keeping the user engaged. Another is that the engagement should be interesting enough so that they will continue using and interacting with it.

By providing proactive directives and feedback through game mechanics and game dynamics, that lead to accomplishments and objectives, insurers can attract, engage and retain customers.

Finally, not all gamification solutions are the same, but true gamification is data-driven, enabling insurance companies to monitor the performance of their customers – perhaps one good enough reason to start evaluating gamification?

One thing is sure, the future of gamification is an exciting one.

For related content, read The result of Lumera Pulse survey – Digital participant activation and Highlights Morning Insights webinar – Digital participant activation in the Life and Pensions industry.

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