Recent research by Capgemini has quantified the challenge being faced by insurance companies in today’s market, and it’s daunting: 70% of customers are at risk of switching insurance providers, while globally only 32% of insurance customers reported a positive customer experience from their insurer.
On the other hand, the study found that insurance companies that have focused on improving customer experience are reaping the rewards:
- Insurers with a strong digital presence and customer focus were 26% more profitable
- Insurance customers who had a positive experience were twice as likely to refer their insurer to friends and family, or buy additional products
That’s the good news, but the fact it that insurers across the globe are facing a number of significant challenges that are literally rocking their world. Growing competition and declining market demand (especially in developed markets) is impacting revenue. Customers are shifting from using insurance agents and brokers to direct sales and service – often online. This is driving the need to improve capabilities for digital sales and service, including on the web, and over mobile and social channels. At the same time, customer loyalty and trust due to issues over claims handling and payments is down, while stricter regulation and compliance requirements add more complexity into the mix.
The overarching dilemma for insurers today is how to deliver a customer experience that is:
- Appealing to customers
- Differentiated relative to the competition
- Efficient to operationally deliver
- Delivered over all channels, across the customer journey
- Compliant with regulations
To get there, insurers can take a number of steps to quickly impact customer engagement and deliver the omnichannel customer experience that today’s customers expect. It starts with leveraging a single customer experience platform to provide all the channels that customers want to use when selecting policies, making payments and filing claims, including voice, web chat, mobile, social and white mail. In order to deliver a seamless and consistent customer journey for common customer tasks, like the claims process, applying customer interaction context consistently across all channels ensures that customers do not repeat information and re-start inquiries – they quickly and efficiently get their task down with your company.
Proactive communications with customers through their preferred channels for sales, service, education, and customer surveys is another way insurers can take the customer experience to the next level, while driving efficiency across the the business in the form of increased productivity and faster conversions. Efficiently managing a highly specialized insurance workforce so the desired customer experience is delivered by a suitably skilled resource is also a critical piece of today’s omnichannel customer experience for insurance.
Finally, when it comes to getting time-sensitive insurance processes like claims completed, the ability to prioritize both real-time and offline work items and manage workload distribution and resource allocation across a virtualized pool of resources, including multi-site, in-house, outsourced, front and back office, branches, and remote staff, can lead to significant improvements to the experience and the company’s productivity.
Ultimately, an insurer’s whole world is centered on the customer, so the experiences they deliver are critical. If you’d like to learn more about delivering an omnichannel customer experience in insurance, check out our latest white paper titled, Taking the Insurance Customer Experience to the Next Level. You can read it here!