Three ways to improve customer experience in insurance


Three ways to improve customer experience in insurance

Improving customer experience is becoming an essential element in organisations’ strategies. This article discusses three key areas your organisation should focus on when looking to improve customer experience.

Improving customer experience is becoming an essential element in organisations’ strategies to win and retain customers. With the industry becoming increasingly data-driven, market participants are realising that using it to its maximum potential will give them a competitive advantage. Moving from a product focussed to a customer-centric approach is necessary. Technology will provide the tools for brokers, syndicates and insurers to make a successful transition. This article discusses three key areas your organisation should focus on when looking to improve customer experience.

1. Developing the digital architecture to transform traditional systems and processes

As an insurance business, you have vast amounts of data available to you, most of it unstructured. Organising it into useful, accessible information is crucial if you’re going to use it in a meaningful way to guide decision making. You should undertake an audit to identify what data you have, where it is stored, and whether it is useful to you. Then, you can carry out a data cleansing exercise, so your data is ready for whatever technology you adopt for your business.

Reviewing your current IT set up and skill base is also necessary to future-proof your business and improve customer experience. Many struggle with integrating new technology with legacy systems. If you’ve already invested in in-house platforms, you may be reluctant to consider new technology. However, thanks to Insurtechs, there are many relatively low-cost software solutions you can easily integrate with your current systems.

It’s advisable to conduct an audit on your IT systems. It will provide an evaluation as to whether you have systems in place with the capabilities to meet your organisation’s goals and objectives. It will also help identify where the gaps are in your architecture, so you know what kind of technology to invest in and introduce.

As you move towards a predominantly digital environment, you must also consider whether you have the skills in-house to manage and use the technology.
Day-to-day tasks will become automated, removing the need for administrative positions. You may need to re-train some of your admin staff to do data-driven roles such as data analysis and IT development. Other jobs will also be affected. Your client-facing teams will be able to spend more time on complex cases and risk management, providing a more comprehensive service to your customers.

TINtech London Market 2020 driving change in the Lloyd's and London market

2. Leveraging datasets to uncover key customer insights and improve customer experience

Discovering how different market segments differentiate insurance is critical to creating relevant products & services, priced and distributed in the most effective way. Understanding what drives customer behaviour is therefore crucial to delivering an exceptional customer experience and maintaining your competitive advantage. Using technologies such as AI and machine learning, you can analyse your data and uncover enhanced insights into your customers and their behaviours. You can then use these insights to improve the customer journey, communicate more effectively and offer them more relevant insurance products.

Customer segmentation

As mentioned, data can be used to identify groups of potential customers, their needs and preferences. You can then tailor your interactions with them in a way which meets their expectations and improves your conversion rates. For example, you may deal with high net worth customers. In which case you’d have to provide much more of a concierge-style service than you would for someone looking for standard home insurance.

Customer segmentation allows you to plan engagement with your customers at each stage of their insurance journey. You can identify where they would be comfortable with purely digital connection and where human interaction would be more appropriate. For example, a customer may need reassurance when they make a claim. Not only can you differentiate by social demographics such as age and income, but also at different points along the customer journey.

Customer engagement and cross-selling

There is great value in engaging with your customers throughout the lifetime of their policy, rather than only at acquisition and renewal. Data analysis will allow you to personalise communications with them and cross-sell customised products based on their lifestyle or interests. Ask your customers for feedback and use it to identify any issues, resolve them quickly and improve customer experience.

The Internet of Things has allowed some insurers to engage with their customers continually. Motor insurers who offer telematics gather data about driving behaviours and life, health and protection insurers collect lifestyle data from fitness wearables. This information is communicated via apps and insurers then use it to determine pricing models and offer discounts dependent on behaviour.

TINtech London Market 2020 driving change in the Lloyd's and London market

3. Optimising distribution channels

The digital age has transformed the distribution landscape and customers expect omnichannel options. Chatbots, mobile apps and social media communications are becoming mainstream channels across many industries. Once an insurance organisation segments its customers, it can structure its channels to their preferences. As well as benefitting customers, these channels provide an opportunity for insurers to collect data and information about demographics, behaviour and channel preferences.

Self-service portals allow customers to purchase insurance, receive or request support and make claims at their convenience. The customer gets a better experience, and insurance organisations benefit from:

  • cost reductions from task automation
  • more job satisfaction for staff who don't have to deal with low-grade queries
  • centralised data collection
  • reduced processing times for claims

Making the best use of your data to improve customer experience will also drive efficiencies and simplify processes across your business. To find out more about the transformation data and associated technologies are bringing to the London Market, join us at TINtech London Market 2020.

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TINtech London Market 2020 driving change in the Lloyd's and London market

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