Improving customer experience through consumer insights in insurance

Digitalization has taken over the insurance sector like every other. Companies are constantly seeking to build new products to improve customer experience. Here’s where consumer insights in insurance will prove vital. According to The State of Connected Customer report, 84% of customers believe the experience a company provides is as important as its products or services — yet there is a huge gap between customer expectations and what most insurance companies deliver. Generation Z customers have sophisticated demands with a distinct aspect that modern insurers must capitalize on by working faster and providing a superior customer experience.

The insurance industry is moving towards a customer-centric model to deep dive into the thought process of consumers and cater to their exact needs. Here’s where leveraging the power of consumer insights in the insurance realm will be crucial. The industry has begun to shift toward a consumer-centric model that focuses on the customer experience. 85% of insurers use customer experience initiatives throughout the customer journey, and 90% have a C-suite position dedicated to the consumer experience, such as a Chief CX or Chief Customer Officer (CCO). 

On the implementation of Adobe Experience Cloud, Sophie Bellemare, AVP of Strategic Digital Initiatives at Manulife said, “we wanted to make a better experience for our customers online, but first we needed to understand what customers need, and what they wanted to hear from us. Then we needed a consistent way to apply those insights across multiple pages and websites to improve experiences, engagement, and conversions.”

To understand the consumer mindset, insurance companies are adopting varied techniques such as:

• Increasing new channels to connect with clients for policy questions and claims
• Changing the language in documents and communications to use less insurance jargon
• Offering hybrid experiences (human and artificial intelligence, physical and virtual, direct, and agent-based)
• Connecting with customers on a continuous basis instead of only at renewal time

It is obvious that technology connects to the growing digital insurance consumer sectors. However, the risk appetite for the different generations varies which the insurers which insurers must consider when developing their offerings.

Millennials between the ages of 18 and 34 are more interested in digital offerings. Therefore, insurers will need to collaborate with ecosystem partners like fitness device providers that offer nutrition or stress reduction coaching to meet their needs. On the other hand, consumers aged 55+ who are gradually getting accustomed to digital insurer interactions may prefer the chat/video insurance claim process instead of the traditional in-office claim process.

New business models that capitalize on how technology assists insurers in meeting changing consumer demands are critical. Consider how those models might be applied based on your existing book of business and unique market positioning with your team.

Following are some success stories of insurance companies that have navigated the usage of consumer insights to build a competitive advantage –

1. AXA introduced two-way customer feedback

AXA has established a system of insight called two-way customer feedback. This system gives them access to customer feedback instantly at almost all touchpoints. Across most product lines, they allow customers to post reviews directly on their website. The reviews provide customers with clarity as well as feedback on areas where they can improve.

2. Manulife adopted Adobe Experience Cloud to better understand customer insights and ways to improve the experience

Manulife was looking to develop websites with a stronger emphasis on the customer experience. They implemented Adobe Experience Cloud which resulted in building distinctive services with cloud-based infrastructure for scalable, customized experiences.

3. XumaK helped to support MetLife’s customer-centric strategy

MetLife used XumaK capabilities to transform their digital strategy and assist regional markets to personalize their customers’ specific needs.

4. India-based insurance company implemented Auris to enhance customer experience

Auris was deployed by the insurance company to monitor both public and private chatter of the firm. They used AI-powered models to identify these consumer conversations in real-time. They segregated each discussion by demography, sentiment, and other insurance industry-specific traits to enhance customer experience using consumer insights.

Read More: Conducting customer behavior analysis in insurance and its benefits

However, technology is disruptive and insurance companies are still taking calculated risks when investing in IT solutions. To assist insurers in understanding shifting consumer demands, new digital business models must be implemented. Concentrating on the areas highlighted by the consumers themselves will be more beneficial to insurers’ growth and relevance. That’s why, designing products and services around the customer experience helps turn insurers into reliable advisors that will push customer loyalty and eventually, purchasing decisions.

To know how Netscribes can help you harness the power of consumer insights in your industry niche, contact us today.

Based on insights by Chahat Khatter, Manager, Research and Information, BFSI.