How can insurers deliver a better customer experience?

The insurance industry is experiencing the impact of rising digital innovation, which spurs elevated customer expectations. A good customer experience instills feelings of being heard and appreciated; it reduces friction and enhances efficiency — all while preserving a human element.

When customers enjoy these benefits first-hand through exceptional service provision, they become inclined to purchase more frequently; their loyalty intensifies — and most significantly — they share this positive encounter with friends, which is a direct testament to your organization’s commitment towards excellence.

According to a survey of 8500 insurance customers from the 40 largest North American P&C carriers, customer experience is a strong predictor and driver of financial and organizational outcomes.

No longer is the provision of exceptional service sufficient for ensuring a positive customer experience; companies in fiercely competitive markets increasingly use it to differentiate their brands. In light of this, one must consider how this applies to insurers confronting escalating competition.

Those who aspire to distinguish themselves and excel must provide experiences prioritizing customers, thereby delivering a cooperative journey facilitated by digital capabilities.

How do you start with a customer-first experience? 

We have assembled four principles to aid you in enhancing customer experiences, all focusing on innovatively cultivating customer intimacy and trust: the key elements of a customer-centric experience.  

This approach must be agile enough to meet rapidly evolving market expectations while reducing costs. Despite their pervasive influence, digital services provide numerous efficiencies; however, certain sectors remain reliant upon human interaction, notably insurance.

1.       Take a walk in the customer’s shoes

How frequently do you scrutinize your business from an objective, customer-centric standpoint? 

Can you vividly perceive what it entails for a client or partner to transact with your company? Poor customer service is a leading cause of customer attrition or institution-switching in the financial sector.

Insurance companies allow customers to obtain a product quote online; however, finalizing the purchase may not always be possible. Despite this limitation, most insurers continue to engage with customers through the broken channel and depend on outdated systems and technology.  

By actively experiencing different stages of the customer journey — a strategic approach — these entities can effectively identify pain points, thereby setting themselves apart from competitors.

2.       Use analytics to inform decisions

The insurance industry thrives on data: it serves as its lifeblood. Understanding the past of an event proves helpful; however, possessing the power to predict future occurrences and influence them presents a much more potent strategy.

Using insights can enhance your customer strategy in customer experience design, marketing, sales, and service optimization. These valuable perceptions enable you to minimize dependence on rudimentary rating factors — like age or marital status — when determining premium prices; instead, they emphasize customization and an individual’s unique traits.

Beyond traditional customer data points, analytics extend to encompass behavioral economics and digital intelligence; this comprehensive view of your customers allows you to strategically offer products at opportune moments — potentially increasing the sale volume for insurance solutions.

3.       Automate responsibly

We frequently advise our clients against prioritizing automation over human connections. 

Undoubtedly, technology can contribute to the solution; however, it will not take over entirely- as few aspects will always remain for human interactions.

The immediate priority lies in utilizing automation and artificial intelligence to decrease the cost base; failure to do so may result in swift obsolescence. Insurers have underscored this necessity through their experiences developing robotic process automation solutions.

A careful map of processes from distribution – all the way down to claims settlement is crucial. 

This method ascertains which areas exhibit sufficient structure suitable for automation, thereby identifying opportunities for AI application.

The recent CEO Survey reveals a startling statistic: less than one in three Canadian CEOs- specifically, only 28%- clearly understand the potential for robotics and artificial intelligence to enhance customer experience. Therefore, it becomes imperative to be aware of and strategically integrate these technologies; their maximum impact must never go untapped.

4.       Engaged employees, engage customers

Innovation, driven by people instead of systems, hinges critically on these individuals to fully realize its commercial potential. The demand extends beyond mere digital skills and encompasses the creativity and emotional intelligence essential for innovation and customer connection.

Research reveals an overwhelming 91% of Financial Services Chief Executive Officers who perceive a pressing need to bolster their organizations’ soft abilities alongside digital capabilities.

We understand that automated solutions must learn from human interactions. If you continuously enhance your workforce’s skill level, it will not simply cultivate more engaged employees; instead, this endeavor shall facilitate superior service, which invariably enhances customer experience. 

Consequently, this process accelerates the evolution of your automated solutions: the outcome is intelligent automation and an impeccably seamless customer journey.

Emerging trends reshaping the insurance customer experience landscape

The insurance industry is witnessing a transformative shift driven by evolving customer experience trends. These trends encompass personalization, omnichannel support, self-service capabilities, streamlined claims processes, embedded insurance offerings, and a heightened focus on risk prevention and mitigation.

·       Personalization: Customers seek tailored recommendations and targeted discounts that simplify decision-making amidst an abundance of choices and information.

·       Omnichannel Experience: Expectations for a seamless experience across various channels, including websites, mobile apps, social media and call centers, are driving insurance companies to invest in technology for integrated and consistent customer engagement.

·       Self-Service: There is a growing demand for convenient 24/7 access to digital platforms for payments, claims filing, policy information retrieval, and other transactions. However, ease of access and intuitive interfaces supported by virtual assistants and chatbots are crucial for enhancing the self-service experience.

·       Streamlined Claims: Simplifying the claims process and effective communication during stressful situations strengthen customer relationships and trust.

·       Embedded Insurance: Insurers are bundling insurance with other products and services, facilitating easy acquisition and retention through personalized communications.

·       Risk Prevention and Mitigation: Customers respond positively to incentives promoting healthy habits and risk reduction measures, such as discounts for safe driving and fitness activities.

These trends are underscored by pertinent statistics:

·       59% of global customers desire life insurers to offer discounts for healthy choices.

·       Only 7% of customers trust chatbots for claims processing, highlighting the continued importance of human advisors.

·       A significant percentage of customers are willing to share data with insurers, provided they perceive value in return.

Enhancing the customer experience yields several benefits, including improved retention rates, enhanced cross-selling opportunities, and bolstered brand reputation. Achieving effective insurance customer experience management necessitates expertise in user experience design, seamless omnichannel support, deep customer insights through analytics, customer journey design, and talent acquisition and management.

As customer expectations evolve, insurance brands that strike the right balance between intuitive digital experiences and empathetic human support are poised to attract, retain, and upsell to customers effectively.

Enhancing the customer experience

Selecting the appropriate platform is pivotal for effectively executing a robust customer experience strategy. So, you must constantly innovate to provide cutting-edge solutions and insurance BPO services that empower professionals to gather essential data and assess every aspect of their customer journey with precision and efficacy.