Why improving customer experience helps consumers, employees

Today’s insurance customer expects more. Quick responses to emails, availability on all digital channels, and personalized communications are just a few things that the modern insurance provider must offer to satisfy customers.

An Active Digital study conducted with Harris Poll found that most consumers (86%) expect their insurance company to provide the ability to interact with them through all digital channels. 

In addition, most customers (79%) agree that having a person readily available to help them online or through an app would make them choose one insurance company over another.

Like many other industries, the insurance industry is highly competitive with many companies fighting for market share. To protect that market share, therefore, it’s imperative that they deliver best-in-class customer experiences while driving efficiency and providing personal, customized service. 

Employee enablement and customer retention
Today’s talent values employee enablement more than ever. Some analysts have even said that boosting employee and performance enablement is the ultimate antidote to the so-called Great Resignation.

Providing your employees with meaningful work and equipping them with proper tools and development opportunities will make them happier and your customers more satisfied.

The benefits are clear: According to Korn Ferry’s research, organizations that rank in the top quartile for engagement show revenue growth 2.5 times that of organizations in the bottom quartile. The lift is even more dramatic when combined with high employee enablement: revenue increases 4.5 times.

Further, highly engaged employees are ‘10% more likely to exceed performance expectations.’ 

Employee engagement and enablement are closely linked with customer net promoter scores. Employees who feel supported are better advocates for the customer, reinforcing the positive feedback loop that allows a company to continually improve the customer experience. 

The result? A higher likelihood that everyone will be satisfied. Customer loyalty and retention increase and your company will enjoy greater cross-selling and upselling opportunities and higher employee retention rates.

What best-in-class insurance customer experiences look like
Customers have always bought insurance more out of necessity than choice and have prioritized the product they’re receiving rather than the service. 

But that’s all changing. With factors like inflation and the rise of remote work, people are reevaluating everything.

Further, insurance customers today are more tech-savvy than ever, and they place greater importance on topics like efficiency, cybersecurity, and financial inclusion. Customers are becoming more discerning about the companies with whom they do business.

Keeping up with customer-focused digital technology is a must. The need for speed is contagious. Customers expect even legacy companies to keep up if one startup insurance company rolls out processes in hours rather than weeks. When an insurance startup like Lemonade advertises ‘instant everything’ and ‘incredible prices’—those expectations become part of customers’ expectations, even for companies still relying on paper and analog processes.

It’s about balancing disruption and delight. Innovation and stability. Efficiency and customization.

While that’s a tricky line, there are many examples of insurance companies using digital transformation to deliver outstanding customer experiences. These success stories highlight the massive potential of digital transformation for the insurance industry.

Pay-as-you-go 
In recent years, insurance companies have put dramatically more talent resources toward improving cybersecurity. The increase in ransomware attacks and the rise in public awareness around security risks have made having a strong cybersecurity posture non-negotiable.

At the same time, insurance customers willingly sign up to put tracking devices in their cars to participate in behavior-based insurance models, such as recently acquired Metromile.

Why the seemingly contradictory priorities? Insurance customers have shown that they will welcome technology if it makes things easier or better for them. The promise of lower premiums for lower mileage. Easy-to-understand policies fill a need for a reasonable price and with straightforward language. Discount incentives in exchange for driving data. 

Industry-disrupting pay-as-you-go systems—like insurance for a peer-to-peer rented car during a vacation—are hitting the sweet spot with customers because it’s easy for customers to understand what’s in it for them. Usage-based insurance leverages some of the most invasive technology from a privacy and data standpoint, yet its popularity is rising.

Digital insurance managers keep all your policies in one place
By 2026, the B2B2C insurance market is set to swell to $4.49 billion from its current size of $3.55 billion. 

With the growing popularity in Asia and Europe, digital insurance management platforms analyze and optimize a customer’s insurance situation, helping to identify areas where customers can consolidate or expand their coverage.

By offering convenience and proactive solutions to customers, digital insurance managers are attracting customers who want to purchase from them instead of those who must buy coverage because of legal mandates.

Virtual processes let customers take care of claims faster
The COVID pandemic forced a lot of people and industries to an unprecedented realization: It showed us we could do things virtually that we previously thought could only happen in person. From weddings to doctors’ appointments to court hearings—virtual alternatives are convenient. 

By reimagining a standard analog insurance process with a digital update, cloud-native claims management company Snapsheet uses mobile technology to settle claims faster. Large P&C insurance companies like Geico are incorporating more and more technology into their estimate and claims process by leveraging digital photos and asynchronous operations.

Digital transformation helps deliver a customer experience that was previously thought impossible in the insurance industry. And the potential upside is enormous. Digital transformation can help you lower costs and improve efficiencies. You’ll see considerable business momentum from delivering tech-enabled customer experiences that lead to more significant sales, happier customers and more engaged employees.