Customer Demands are Ever-changing in The Insurtech Landscape

Insurance companies

Insurance companiesA recent report from the IBM Institute of Business Value (IBV) revealed, that 42% of customers don’t fully trust their insurer, and most insurers (60%) agree that their organization lacks a CX strategy. This leaves the industry with significant room for improvement.

Insurance companies are increasingly leveraging insurance technology or ‘Insurtech’ to meet the evolving needs of customers. Insurtech refers to the innovative use of technology to improve efficiency, build trust, and deliver personalized insurance services.  According to the latest State of the Connected Customer report, customers today are more active on digital channels than in 2020. This trend is not expected to slow down anytime soon even as social restrictions continue to ease. In addition to this digital-first shift, 56% of customers expect offers to always be personalized. As insurers strive to meet this growing customer expectation, building trust is proving to be more critical than ever. 80% of insurance executives stated that frustrating online experiences led to a loss of customer trust during the pandemic.

Improving insurance CX through technology largely depends on having accurate data (in as close to real-time as possible) to adequately address needs and challenges. In addition to communicating the benefits of sharing both consumer and insurance-related data and providing transparency for how the data is used, insurers should specifically invite customers to share data across all interactions, and make it as easy as possible for them to do so.

Infusing AI throughout the insurance customer journey can significantly increase customer satisfaction and retention, according to the IBV report. By starting with deep industry expertise and AI-based tools, companies will benefit from increased speed, accuracy, and efficiency. Further, the increased productivity opens up more time for insurers to develop the personal connections customers are looking for when making insurance decisions.

Insurers are starting to recognize the value of redesigning their systems and processes, and building intelligent workflows that pair data with AI, straight through the procession, automation, etc. to embed exponential technology at every step of the process. Integrating functions across organizational boundaries empowers employees and allow customers to feel known, be served faster, and get instant policy refunds or claim payouts. Further, automating and integrating tasks can result in innovative ideas that convert into business value.

Insurers should also focus on integrating their systems and platforms to create the ability for agents to have seamless conversations across multiple channels with customers. For example, a customer service agent on the telephone would be notified that the customer they’re talking to just requested a quote on a life insurance policy a few minutes ago directly through the website, and can seamlessly modify that quote, send it back by text with personalized options for the customer to finalize on their mobile while getting the right advice from the live agent.