In the insurance industry, where pricing models tend to be standardized and closed, a company's ability to innovate and adapt to the changing needs of its users can be a key differentiator. This was the case for a digital insurer that, instead of tackling a problem the traditional way, is always looking for ways to improve its value proposition with an up-to-date understanding of its customers.
The context: why knowing your users matters
This company was already well positioned in the market as a digital insurer that prioritizes technology to make the customer experience easier. Still, as in many sectors, pricing models tend to be rigid and hard to adapt to individual user needs. Despite this, the company decided to run user research with the goal of continuing to sharpen its understanding of its customer base.
What began as research to better understand its users ended up revealing a trait that could translate into a valuable business opportunity.
The process: combining methods for precise results
To carry out this research, our UX Research team used a mixed approach that combined qualitative and quantitative techniques. The first step was to develop the User Personas. These results served as the foundation for a deeper process: the "quantification of the User Personas" using the principles and methodologies that psychometrics proposes.
This psychometric approach made it possible to design a structured measurement instrument, which was then applied to a representative sample of the company's customer portfolio. The goal was to identify behavior patterns and underlying traits that weren't visible in traditional demographic data.
In other words, to turn data into information that lets us make decisions with real impact.
A key finding: a market niche
When analyzing the data collected, the team identified a specific dimension within the set of items that explained a significant portion of the variation in the sample's responses.
A single dimension —each person's relationship with their car— accounted for 20% of the variation in responses. That's where the niche was.
The trait we identified had to do with what we call the "car usage dimension": how dependent on or independent from their vehicle people are when it comes to getting around. In other words, how much they used the car (a lot, a little, for leisure or work) and how dependent they were on it to carry out their daily tasks (high, medium, low).
The next step was to cross this dimension with other data we had on users: car model, area of residence, insurance plan, claims level and scoring.
This allowed us to understand users in greater depth and, by interpreting that information alongside the new "usage dimension" trait, to propose new products and changes to the business strategy, such as the pricing model.
The business impact: new value propositions
The new information allowed the company to adjust its value proposition, developing new insurance plans that better fit the needs of the user niche identified after segmentation. These plans, designed with the research insights, expanded the company's offering and made it more appealing to a broader group of customers.
In addition, the process allowed the company to stand out in the market with a proposition that responded directly to its customers' emerging demands. As a result, it improved its portfolio by capturing a group that had not been considered before, and increased its competitiveness in the digital insurance market.
Innovation grounded in user research
This case shows how research can not only help solve existing problems but also uncover hidden opportunities that drive innovation. By combining methodologies, the team deepened its understanding of the customer base and adapted the business model to capture a new market niche.
Knowing your users doesn't just help you improve what you already offer: it can open doors to new opportunities for growth and differentiation.