We are in a moment in history when businesses in all sectors are rapidly reworking the way they interact with customers, to determine how they can remain an invaluable part of people’s lives as a lot is evolving. The pandemic has accelerated these changes, of course. In the massive disruption of everyday life, shaking people and societies out of familiar routines and forcing new methods for pursuing their personal and professional interests, COVID-19 has created a brand new space for alterations in behavior.
The insurance industry — long known for offering peace of mind, stability and trust — is adapting. Actually, the insurance market is expected to spend nearly $28 billion annually on customer experience solutions. But many people still lack rely upon insurers. Fewer than half of those surveyed in EIS Group’s Customer Compass Report say they trust insurers to respond to their basic needs. That is troubling and should be considered a wake-up call.
Now is the time for insurers to check on their headings and hang new courses to gain the trust and satisfaction of customers. To start, insurance providers must concentrate on adjusting two major components found through the customer journey — customer experience and personalization.
Customer experience and personalization — that have been predominant concerns in retail for many years — are actually only second and third to cost with regards to logic behind why people might switch insurers, based on the Customer Compass Report. A complete 28% of policyholders stated that poor customer experience is really a “main reason” for leaving a service provider, and 20% cited insufficient personalization. Getting experience and personalization right is not a “nice to have” for insurance providers; it's quickly becoming a crucial element of what insurers offer to customers.
As the world becomes increasingly digitized, opportunities abound. Fitness trackers, for example, help their users with real-time understanding of their health and activity — however the same data can be fed into a health or life insurance product to provide personal rewards and discounts. Several insurers, including John Hancock using its Vitality program, have been successful with this particular model. Similar approaches are relevant for automotive insurance, rewarding users once they avoid risky activities or drive responsibly, while giving them options for more extensive insurance if that’s what's appropriate for their lifestyle and behavior. 54% of shoppers indicated they would consider auto insurance they would pay for only if they drive. 60% would consider car insurance which costs less if they drive at low-risk times during the the day.
Customers could be offered multiple ways of communicating, including email, self-serve interfaces and automated chatbots as well as phone and instant messaging. However, consumers have astonishingly low expectations of insurers — only 23% expect insurers to integrate their experience across mobile, web and in-person channels.
For a truly satisfying customer experience, insurers must make sure that customers can move seamlessly between those channels what ever they want. As an example, a buyer might receive some initial information about an insurance offer via email, then make use of a messaging app to obtain further details in a conversation facilitated by a chatbot. An internet form would then be pre-populated using the information from that chatbot conversation, and a quote sent. At the same time, a phone call center would be available where a representative can easily see an introduction to progress, if the buyer has any final questions before completing the acquisition. While this example may seem commonplace for many consumer buying cycles, it's not for insurance buyers.
One truth of the digital economy is that individuals are willing to research and assess which goods are satisfactory. But they're also thinking about simplicity and wish a “one-stop shop” for items that meet their specific needs. With data and tech accelerating faster every day due to the pandemic, insurers must embrace the task and seek all of the potential opportunities that can improve customers’ lives.
