Customer expectations were already changing rapidly due to the advent of digital tools and their integration into most aspects of people’s lives. Then, COVID-19 happened.
Customers shaken by the pandemic had no other option but to prioritise their health, financial security and business continuity, growing intensely aware of the need for effective insurance. Expectations are therefore mounting on insurers to improve their customer interactions and bolster their digital capabilities to keep up with customers’ evolving demands.
In other words, insurers need to face the music: lower prices aren’t enough to stay competitive in today’s market. Customers value convenient, simple and user-friendly experiences. Could insurtech give companies the edge they need?
Continue reading to discover the importance of improving customer experience in the insurance industry and learn how insurtech can transform insurers into customer-centric businesses.
All insurance companies face the same problem: they operate in a highly commoditised market, where consumers face a sea of choices on products and services that — to them — all look the same.
Price comparison websites may direct customers to the best deal, but customers seek more than just a reasonable price — they demand a streamlined customer experience. For example, expectations such as instant customer support, easily accessible products and straightforward claims processes are embedded in the modern insurance customer. Insurers therefore need to adapt to these requirements to stay competitive.
By pivoting to the customer and elevating their experience, insurance companies can reap the following rewards:
It allows insurers to be sympathetic to customer pains and increases the perceived value they are getting in exchange for their money
It empowers insurers to rapidly respond to new business opportunities
It lengthens the duration of relationships and creates the potential for a halo effect across customer segments
Insurers can use positive customer experiences as their USP, helping them to stand out from competitors.
In a digital-first world driven by convenience, customer experience and technology are intrinsically linked — even in the insurance industry.
According to Anirban Bose, CEO of Capgemini’s Financial Services, “Today’s customers expect interacting with their insurers to be easy, and providers need to ensure their channels enable a convenient and seamless customer experience. By investing in the right technologies, insurers can win and retain customers while empowering their agents and brokers to deepen relationships.”
Below, we’ve highlighted the main ways in which insurtech can improve customer experience in insurance:
The ‘now’ generation of customers wants convenience — something the insurance industry isn’t traditionally known for.
Digital natives now demand a smooth customer experience throughout their interactions with insurance firms, and challenger companies are taking advantage of this by integrating insurtech into their processes in the following ways:
Using data analytics to find out what customers want from an insurance company
Moving away from paper to digital processes and e-signatures for a customer-friendly, instant experience
Onboarding new customers remotely, which is critical (and expected) in the post-COVID era
Supplementing human communication with technology to ensure customers get the information they need in the quickest way possible.
With speedier, streamlined processes that support digital needs, modern insurers are improving their customer experience for better client retention and attraction rates.
When customers get in touch with insurance companies, they may have just suffered a catastrophic loss or incurred a significant hit to their livelihood. At a time when they need empathy and human understanding, the last thing they want to go through is a time-intensive, confusing claims process.
Insurtech empowers adjusters to humanise the claims process by making it more accurate, streamlined and efficient. Insurance agents can leave the tedious analytical tasks to the machines while they can focus on reassuring customers and getting them back on track again.
In other words, customers reap the benefits of a speedier process, a friendly face in their time of need and a faster pay-out, and insurance companies can take advantage of a more productive way of working.
According to a report by Accenture, insurance consumers are increasingly demanding to be charged based on their behaviour and habits — and they’re willing to allow insurers to collect and use their data in exchange for that value.
In fact, approximately 7 out of 10 consumers surveyed (69%) would share significant data on their health, exercise and driving habits in exchange for lower prices from their insurers, an increase of 19% from two years ago.
Insurtech can make this a reality. By using data and customer insights to personalise policies and offers, you can entice a new generation of consumers, create greater value for them and build a better customer experience based on their needs.
Mistakes can greatly affect a customer’s experience, particularly in the insurance industry, where a significant amount of money is involved. By using tech to automate tasks, insurance companies can reduce the risk of human errors.
For example, insurers can automate claims processing to follow a series of checks to remove any mistakes or bias, improving the control environment. In addition, AI-based systems can flag fraudulent claims to prevent losses. All of this results in a faster, error-free service for the customer while enhancing internal operational efficiency and reducing the cost of delivery.
The INSTANDA platform helps you to move beyond a transactional relationship with policyholders. Our platform empowers you to design, build and launch personalised products efficiently and easily, transforming your business into one that’s centred around the customer and their experience.