How To Improve Customer Engagement with Insurance Companies

The rapid technological development, digitization and the impact of the global pandemic have altered the behavior and expectations of customers regarding the purchase of goods and services. Modern consumers are used to researching various product prices, comparing options, and making purchases online. The same applies to the insurance industry, as customers expect companies to offer information and services digitally.

Insurers recognize the growing demand for digital services. In fact, according to KPMG, around 85% have strengthened their move towards digitization, while 80% have improved their efforts to offer a seamless user experience (UX). These two concepts are intrinsically intertwined as the right mix of digital channels can increase customer satisfaction.

What Are the Advantages of Digital Transformation in Insurance Companies?

Digital transformation supported by innovative software tools can stimulate the development of specific insurance organizations and positively affect the entire industry. This transformation involves leveraging digital technologies to revamp existing operations, work cultures, and customer experiences (CX).

These are the main advantages of digital transformation in the insurance sector:

• Obtaining key business insights through predictive analytics to make faster, real-time business decisions.
• Better management of resources, reduced costs and minimized deadlines in work processes.
• Improved claims processing and more proficient underwriting.
• Fewer complaints, along with a better customer experience and relationship.

What Aspects Must Be Taken Into Account in the Field of Modern Digital Insurance or Digital Insurance 2.0?

1) Focus on the Customer

The customer-centric approach denotes the alignment of the organization’s offerings with the current and future demands of consumers, with the goal of maximizing their financial value. Such a strategy stems from an understanding of customers, their preferences, their likelihood of retaining brand loyalty, and opportunities for future evolution of relationships.

2) Personalized Service Offers

Personalization is a must for today’s insurance companies. It is important that agents offer consumers those products and services that suit their needs. Solutions based on Artificial Intelligence (AI) help collect and analyze user information in order to meet this objective.

3) Operational Efficiency

Operational efficiency is a general approach that helps address several challenges facing the insurance industry today: rising expenses, altered consumer expectations, and increased competition, among others. To optimize their efficiency, insurers adopt programs aimed at improving flexibility and agility and simplifying operations, thus elevating the user experience and saving costs.

The corresponding methods mainly include:

• Standardization of business processes and correction of legacy systems.
• Implementation of intelligent automation.

4) Open Connected Platforms

To effectively take advantage of digital channels, the insurance ecosystem must open up to external players. With the availability of standardized insurance APIs, companies can be equipped with the right tools that enable superior interoperability with external ecosystems, including banking, healthcare, and the Internet of Things (IoT), among others.

The open insurance paradigm allows insurers to offer their new digital services with greater flexibility, scalability, and speed to meet ever-changing customer demands.

5) An Omnichannel Model

An omnichannel approach implies that the sales and marketing processes are carried out through multiple channels. The latter includes the website of an insurer, the user’s smartphone, physical stores, social applications, messaging, etc. The goal of an omnichannel model is to consolidate communication across channels to provide a seamless transition from one to the other and create a seamless and consistent overall customer journey.

The changing needs of customers have shaped the digital transformation that includes a portfolio of services and a variety of products customized and adapted to meet them. Add-ons and bespoke insurance solutions mean that the old one-size-fits-all model is now obsolete.

In conclusion, in order to properly implement innovation and growth plans in the new era of Digital Insurance 2.0, insurers must focus on the following aspects:

• Communicate with consumers when they are motivated.
• Strengthen conventional channels with digital capabilities.
• Integrate new digital contact points that are more beneficial for both the client and the insurer.