Supreme CX (Customer Experience) has become an imperative competitive differentiator and in some industries more so than others. The insurance industry is one of those, since insurance is a grudge purchase. To establish a successful and lifelong relationship between insurers and customers, companies must focus on understanding their customers intimately and meeting their demands during each phase of the customer journey.

Customers want a digital, and personalised experience, the same they have come to expect from their preferred retailers, banks, and other online services.

The root of digital transformation

COVID-19 has placed digital transformation front and centre for most businesses’ strategy. Insurance SMEs and enterprises offering insurance as their VAS are turning to Insurtech to help kickstart their operations and revenues into the new normal.

“Companies with whom we have been engaging realised they are without call centres or in-store agents since the lockdown, which has effectively switched off their insurance book. This has given them the jolt to put in place a digital process that will allow them to offer more targeted insurance products and diversify their revenue streams as we emerge fully in the new normal”, Daniel Guasco (Founder & CEO of Click2Sure).

Adaptability in a remote world 

Making use of mobile and platform technologies means better accessibility for the under and uninsured. For example, QR codes can quickly and easily be deployed allowing customers to scan and purchase on the go. This has worked very well for those targeting customers who rely heavily on their cellphones to transact.

“While customers may still want the guidance of a broker when it comes to big-ticket items such as life insurance, when it comes to low-value, high volume products like travel or short-term insurance, digital-only offerings that are available at the right place and the right time are perfect to bolster revenue streams”, says Guasco.

Transforming the customer experience 

The future of Insurance lies in digital self-service, great CX, and convenience. Triangulating these three drivers ensures customer loyalty and your competitive advantage.

1. Empowering Self-Service

This is arguably one of the most favoured characteristics of the future of Insurance, as it eradicates the need to be aggravated by long and tedious conversations with call centres by allowing companies to utilise chatbots and virtual assistants to answer any FAQs. With self-service dashboards policy holders can self-manage personal information, lodge claims and enable endorsements. In 2011, Gartner predicted that by 2020, 85% of customer relationships will be managed without human interaction. This number will hit 90% by the close of this decade.

2. Improving Personalisation

Digitisation is improving personalisation in two ways: content and recommendations. Today, we rarely search for products or services that we need — as recommendations are provided to us based on our browsing history, thus bringing the content we seek to the forefront. InsurTechs offer deep expertise in building solutions enabled by big data. And what we have noticed is when marketing messages to consumers are targeted to them directly, conversion rates are significantly higher.

3. Available 24/7

Digital never sleeps, allowing customers to buy insurance 24/7 and have support 24/7, something most companies cannot afford should they employ human resources to carry these services.

What do customers want in the new normal?

Customers want to feel known and valued, especially with social distancing and restrictions on human engagement hindering this feeling of disconnectedness.

While the COVID-19 restrictions are cutting into almost all businesses projections, insurance companies are using the time to broaden their future offerings and satisfy customer needs and experiences.

Insurance companies need to become more customer centric. They need to be able to enhance their customer experience at a rapid pace, by developing digital services that make it easier and more convenient to purchase insurance, manage policies, submit and track claims.

Rapid change is never comfortable, but it is clearly a necessity if a business hopes to future proof itself. Fortunately, technology is offering solutions that are low-risk, low cost, and easy to implement.