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Customer experience in Insurance: Why it’s time to pick up the pace?

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Do you know less than one-third (29%) of insurance customers are satisfied with their current providers?
29%
Infact 21% of customers believe that insurers do not tailor their experiences at all.
21%
More than 30% of customers switch their insurers within a year after one poor claim experience!
30%

With 88% of insurance customers demanding more personalization from their providers and only 15% of customers satisifed with the existing digital experience, insurers need to put customer experience at the center of their business strategy. In this blog, we discuss how CX impacts insurance. Continue reading to find out more!

We’re living in a new world – where digital proximity is driven by social distancing. As businesses prepare to go ‘contactless’ after the COVID-19 outbreak, it has become imperative for brands to reimagine their customer experience.

The pandemic has upended the functioning of many industries and the insurance sector is no different. With low sales and few claims, insurance companies have now realized the need of accelerating digitization while diving deep into the core processes beyond automation. While many consumers are purchasing insurance products online, only 15% of them are satisfied with their insurers’ digital experience. Since the economic downturn has thoroughly impacted people’s lives and changed the perceptions of risk, customer relationships with their insurers matter more than ever. 

According to KPMG, COVID-19 may be a catalyst for greater innovation in the insurance sector, unlocking higher levels of customer experience. So, insurance companies that focus on providing best-in-class customer communication & response will future-proof themselves against any unexpected systemic disruptions. 

Is it a challenge or opportunity?

The current scenario can come up as a challenge as well as an opportunity for insurers. If the insurers act appropriately now, they can experience a massive increase in sales even in an economic downturn. For instance, after the 2008 financial crisis, shareholders got up to 3X higher returns in companies that focused on customer experience. 

Innovating the improvements in CX is important but it can be challenging too. The insurers need to identify the online behavior of their customers. To ensure effective communication, insurers need to create customer journeys by using real-time & historical information. This includes harnessing existing information and making the most of it for the company’s benefit. 

So the question arises – how to empower customers with a better experience through innovation around the core processes of insurance?

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Customer care is paramount

As more than 30% of customers switch their insurers within a year after a bad claim experience, amplifying customer experience to win their trust has become the need of the hour. It is the key ingredient that enables brands to resonate more with their customers and develop an emotional connection. Building a long-lasting and strong relationship with your customers largely depends upon how you nurture them throughout their journey and the quality of the support being delivered.

To establish this trustworthy bond with the policyholders, you have to ensure them that their claims will be paid. But these trying times have forced the customers to spectate certain anomalies as pandemics are not covered by insurance plans. The customers require a medium of reassurance where they feel heard.

Quick service, diligent follow-ups, and a personalized experience are the basic requirements of all customers. Moreover, policyholders expect a bit more humanized experience now. As less than one-third (29%) of insurance customers are satisfied with their current providers, insurers need to adopt a more customer-centric approach to make them feel comfortable. From initial interaction to the inquiry-related terms, and payments & sales to claims, the insurers should deliver a compelling experience that resonates well with the customers’ needs and desires. While every process has become digitized now, certain aspects such as policy planning or claim discussions still require the intervention of personnel who are empathic and patient.

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Stabilize customers the right way

We witnessed how the economy experienced the brunt of COVID-19, small and medium-sized enterprises are no stranger to this. They’re struggling to gain footing and require powerful strategies that help them mitigate risks. As industry know-how has been crucial for commercial insurers until now, it’s time for them to actually reveal the value it adds to the customers, their business, and the local economy. The insurers’ industry knowledge and practical business skills can empower customers to streamline their workflows and the insurers’ can stabilize their own line of business too.

By delivering exceptional customer care, insurers can carve a trustful relationship with their commercial customers that will extend even after the pandemic is over.

Transform the transactional approach into a comprehensive support one

There’s no doubt that point of contact with customers is a part of the transactional business approach for most insurers. To change the impression of insurance as a “necessary evil”, companies should adopt a model that supports a wider ecosystem of life rather than the incident-driven ones. By doing so, it will help to add value in this tough time. 

As 21% of customers believe that providers do not tailor their experiences at all, insurers need to make their brand synonymous with care at every stage of the customer journey. For instance, refunding auto premiums because of minimized driving, abolishing deductibles for people impacted by COVID-19, or even fast-tracking claims can play a pivotal role in demonstrating care and empathy. 

The onset of coronavirus pandemic has exposed the vulnerabilities and stress points of customers as well as insurers. However, it has also come up as a long-sought opportunity for driving the necessary change. Do you want to re-engineer your existing operations with improved CX? Voxco can help you gain complete control of Customer Experience with insights into customer feedback, satisfaction with the claim process, and more.

Check out our Customer Experience Hub and get a jump start on measurably improving the quality of your CX initiatives. 

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Voxco is trusted by Top 50 Market Research firms, Global Brands & Universities in 40 countries. Voxco offers full omnichannel capability including CATI, Predictive Dialler, Online surveys, offline CAPI, and Panel Management.
Sahaj Sharma

Sahaj Sharma

Sahaj Sharma is a content marketer at Voxco. Owning a bachelor’s degree in computer science engineering, he loves exploring digital industry trends and creating content to help businesses shape their market presence. Apart from content creation, the other three things that vie his mind share are fashion, food, and travel.

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