Meat thermometer or garbage bags?

Recently I accessed my Amazon.com app to purchase garbage bags and was surprised and slightly amused, to see my product recommendations which included a meat thermometer, race car set and drone. Understanding that my husband also uses our Amazon app explains the product recommendations.

Sadly, scrolling down the product recommendations page, I quickly recognized my recommended products, which included garbage bags and things to make the house smell better.

Amazon.com is a sophisticated ecommerce site which recommends future product purchases based upon past purchase and product search behavior. They are able to make tightly aligned product recommendations based upon the granular data that they keep on their customers. That is the same principle used in microsegmentation - increasingly enhanced and granular knowledge of policyholder and prospects for the purpose of product matching, underwriting, pricing, billing and claim servicing of precisely defined market segments.

Imagine a world where agents who infrequently sell certain lines of business, such as commercial, have an engine which recommends products best suited for the customer, removing any human intervention, and thus, potential for error. 

Imagine a world where the insurer could use precisely defined microsegments to proactively design and bring to market nuanced insurance products specifically targeted at that risk, including unique coverages, pricing models, as well as targeted payment plans and claims service for that microsegment.

As you read about in my previous blog on Millennials, personalized user journeys are high on their list of requirements. Now imagine a world where you could tap the largest cohort in U.S. history at 92 million with very targeted and precisely defined and priced insurance products. With the right engine, the future sure looks bright for insurers.