Digitalisation Is Expected To Transform The Customer Experience In Insurance. Here’s How

Jul 06, 2018 | 4 months ago | Read Time: 4 minutes | By Manan Vyas

Hailed as being the “multibillion dollar opportunity,” digitalisation is likely to transform the insurance industry more in the next five years than it has in the past 50 years. Customers today expect insurers to provide the same services and interactions as retailers in any other industry whether it is in entertainment, banks, or the clothing industry. The power that technology has given the modern-day customer has enabled them to ask the insurance industry for more: more service, more channels, more responsiveness, more integration and more importantly: less hassle.

Digitalisation In Insurance Industry

While for many people dealing with insurers brings back horrific memories of being on the phone for hours trying to decipher a jargon effused policy, or perhaps making multiple trips to the insurance office for one lousy claim settlement, however, with the “disruption” of technology this has completely changed and transformed the way we think about customers and the industry.

customer service

Credit: Salesforce

Why customer service?

Perhaps a question that comes to your mind first is, well why waste all this time on improving customer service? We should focus on selling the policies, once we’ve sold them, the customer is ours! Well, the insurance industry operates on renewals and more often retaining customers is more important and profitable than reaching out and obtaining new ones. Additionally, across sectors and industries one factor is clear: improving customer service means satisfied customers, and satisfied customers spend more, are more loyal and enable companies to lower costs and improve profitability. It’s a win-win for everyone!

Savings from Digitalisation

Changing the process of underwriting

An important thing to remember is that digitisation merely doesn’t mean providing customers with a mobile based application, which will help “serve” them better, in fact, one of the most important ways the customer experience can be improved is through digital transformation of back-office processes such as underwriting. While in the past, the success of a insurer largely depended on their discipline of underwriting, this has changed greatly. For instance data collected from sensors and telematics devices including, smart appliances, fitness trackers, warehouse monitors amongst several others help in making the underwriting process more efficient, faster and more accurate. This not only makes the process easier for customers but also helps the insurers have more accurate predictive models, thus, helping them save costs.

Changing the game, one claim at a time

One of the most important changes digitisation is likely to bring about is transforming the ways claims are processed. A study conducted by consulting company Bain and Company and Google in Germany showcased that implementation of digital technology could help insurers cut out claims payouts by over 19%. Through machine learning, insurers’ information systems can quickly adapt to new data, and along with distributed ledger technology, insurers can greatly reduce processing time for claims, making it hassle free for customers.

Key Dimensions of Digitalisation

Omni-channel availability

According to a study by Ernst and Young, customers today are defined as being “omni-channel” whereby they use a wide range of communication platforms from text, email, social media, web chat and phone to interact and communicate. For instance, they could find out about a policy and research it online, then talk to their peers on social media about it, finally proceeding to purchase the policy through an application on their mobile phone.

Omni- channel Today’s consumers are naturally omni-channel, researching products online, recommending and talking about them with friends and contacts on social media, and then buying them via mobile apps or at brick-and-mortar retail locations. Certainly, it is imperative for customers to have multiple channels where customers can express their concerns, and avail services and advice, but in fact, the need to the hour is to enable a smooth transition between these channels, so they can move freely between them. Customers expect an increasingly high level of sophistication in the customer service they receive, whereby, there is minimum effort on their part, but consistency from the company for everything- from quotes to claims settlement.

Digital Transformation Score Card

These are just some of the ways the customer service in the insurance industry is being transformed. Global insurance consumers place a very high value on quality of digital experiences with 40% deciding whether or not to continue with their insurer solely on this. Consumers are increasingly willing to switch agents, policies and companies if they are not getting what they want, pushing insurance companies to be more innovative and dynamic in the services that they provide. Insurers have realised that being “digital” involves a lot more than just having a mobile application, and this has shaken up and redesigned the core of the insurance industry. Insurance companies need to rethink their traditional models of operation and combine digital technology with personalised service, products through market segmentation to thrive in the changing industry. Customer-centric strategies in every aspect of the insurance industry: customer service, sales, retention, is the need of the hour to help companies obtain profits and efficiency.

 


Calculate premium for your Term Plan

  • Y N
    • Annual Income
    • Sum Assured
    • Select Cover Upto Age
    • Name
    • Mobile
    • Email ID
Your Annual Premium for Aegon Life iTerm Insurance Plan

RELATED ARTICLES