How to Improve the
Insurance Customer Experience
By Benedict Clark
“Yes, I’m satisfied with my insurance provider” – said a paltry 29 percent of surveyed customers. And with only 16 percent willing to buy more products from their providers, it’s clear the insurance industry has got some way to go in the eyes of consumers. But how do you keep your customers satisfied when they’ve come to see your very service as not much more than a necessary evil? Choosing an insurance policy isn’t exactly high up on people’s lists of how to spend an afternoon.
Insurance Companies Can Do More
The battle for consumers’ attention has traditionally played out as a kind of frantic price limbo, suppliers jostling around to prove just how low they can go to tempt people in. But, clearly, this isn’t a sustainable approach. Insurers can’t simply keep on eroding profit margins all the way down to zero. So, what does represent a more practical route forward – and one that still resonates with consumers? According to research from Newsweek Vantage, the answer is “a differentiated customer service experience”.
Figure to the lower left shows top three options in terms of impact on successful competition
Source: https://c1.sfdcstatic.com/content/dam/web/en_us/www/documents/ industries/financial-services/insurance_competition.pdf
And the proof of this approach is very much in the pudding. Over a five year period, for example, US auto insurance carriers consistently providing best-in-class insurance customer experience generated two to four times more growth in new business and around 30 percent higher profitability than companies showing an inconsistent customer focus. So, it’s clear that creating a great insurance customer experience is crucial. But what exactly does that experience consist of?
What Your Insurance Customers Want Now
Ultimately it comes down to the expectations of the modern-day consumer. Let’s take a look at what those are. A frictionless experience Incidents leading to insurance claims may hit like a bolt out of the blue. This means customers need to be able connect with insurers at any time, in any place, through any method. At what could be one of the most stressful times in their life, the last thing they need is more unnecessary hassle. That’s why a Bain & Capital survey of more than 174,000 retail insurance consumers in 18 countries, showed customers everywhere value quality and ease of use. A company that stands out from the crowd With experience replacing price as the distinguishing factor between insurance brands, you need to be something different to stand out. US insurer Lemonade understood this only too well, making a name for itself with a fresh digital approach to claims processing. At the start of 2017,
24
insight
february 2021
