Insurers must become digitally agile to build customer loyalty

Authored by Anna Fleming, AXA UK. Retail Chief Operating Officer

The insurance industry is facing mounting challenges which are shaping how it develops and delivers its services and products. As well as grappling with the changing regulatory landscape and the inflationary environment, insurers are also having to innovate to meet the evolving needs and expectations of customers.

The COVID-19 pandemic has led to greater customer demand for seamless digital interactions and processes similar to those being offered by Big Tech companies like Amazon and Apple. To be able to meet this growing demand, the industry must place technology and data at the heart of its operating model and harness it in a more agile way.

Insurers should provide seamless omnichannel experiences where touchpoints are clear and easily accessible and data is fully integrated to avoid customers feeling as if they are repeating themselves. Those that seize the opportunity to innovate will benefit from improved efficiencies, increased customer satisfaction and more loyalty. In addition to this, the FCA’s pricing reforms mean insurers need to do more to stand out and keep their existing customer base, so ease – and even delight – in using a company’s services will encourage retention at renewal.

At AXA UK we are on our own digital transformation journey and are particularly focused on improving customer outcomes. The use of more agile technology platforms has allowed us to use data and analytics in a smarter way as well as develop digital propositions that give customers greater flexibility, more choice and a better overall experience.

It’s also beneficial for insurers to look to and learn from other sectors to help design their digital propositions. We have benchmarked against best in class from other industries and have spent time listening to our customers, allowing us to embed customer insights into our product and journey design. In the motor space, we have built a digital solution which delivers straight-through processing for customers. This has significantly reduced the time taken from a claim being notified to customers being contacted by our partners to arrange repair or salvage.

The whole purpose of insurance is to be there when our customers need us the most. This means insurers have a duty to meet their changing needs by providing a seamless online journey to personalised, flexible and fair products. By doing this, we can build trust, create a loyal customer base and secure a successful future not only for our own business but for the wider industry as well.