Insurers Are Battling With Customer Experience – Here's Why
Traditional insurance carriers are in a battle for customers, and they are losing.
Today’s customers expect the kind of efficiency, simplicity, and immediacy they experience when dealing with providers in banking and retail. Having recognized the importance of customer experience (CX), other sectors are successfully leveraging customer communication to retain customers, drive engagement, and build loyalty. The value of customer communication management in insurance is therefore undeniable.
How did insurance carriers end up in this challenging position?
There are many contributing factors:
• Carriers lack a direct relationship with policyholders.
The purchase or renewal of an insurance policy is often facilitated by a third party, such as an agent, a broker, or an online consolidator. Although historically a highly successful business model, carriers failed to recognize the risk inherent in a relationship that places the third party between them and the customer.
With little to no control over customer touchpoints and the associated communications, insurers find themselves in the dangerous position of having no direct relationship with their policyholders.
• Insurance lagged other industries in focusing on customer experience.
Despite the focus on customer experience in other industries, traditional insurers were slow to move away from the old-school focus on products, risk, and ratings.
Providing a great customer experience requires technology investment and change management, and some are still in the process of moving away from a product-centric mindset, to putting the customer at the center of the organization.
• Opportunities to engage with customers are few.
The only guaranteed interaction between an insurance provider and a policyholder is the quarterly bill or annual policy renewal.
When these touchpoints are managed by the broker or via self-service on a portal, the insurer is left with little to no opportunities to connect and engage with the customer.
Where there is no interaction, there is no engagement and that means carriers are severely limited when it comes to building healthy, loyal relationships.
• Highly competitive offerings from big tech, digital attackers and insurtech companies.
Innovation from large tech platforms like Amazon and Apple has exposed consumers to the kind of customer experience that can be achieved through digital technologies, and this is setting high service expectations.
There are many competitors, including new entrants, digital attackers and insurtech companies, that have aligned their business models with evolving customer expectations.
These competitors offer online services and fully digital processes, lowering the hassle of moving providers, and increasing the risk to carriers of customer churn.
• Investment in technologies that enhance customer experience is growing.
The insurance sector is one of the largest investors in technology for optimizing business processes.
The report estimates that global IT spending in the insurance segment will reach 126 billion USD worldwide in 2022. A large portion of this investment (27.9 billion USD) is in technologies relating to the optimization and improvement of customer experience.
Companies that are not investing in CX are going to fall further behind.
How Customer Communication Management in insurance can help bridge the customer relationship gap
Traditional insurance companies are under pressure to bridge the customer experience gap.
Customer Communications that are timely, personalized and relevant, are a key component of bridging the gap. Successful relationships require a strategic approach that is supported by a customer communication management platform and the expertise to guide an optimal implementation and execute the right strategy.
Customer communication management in insurance plays a vital role in enhancing customer experience. One way to begin is to define a customer communication management strategy that includes both the customer and the broker/agent that holds the relationship. This strategy should focus on removing any friction in the communication experience and on adding value to both broker and policyholder.
Building relationships requires customer communication management technology and expertise.
Doxim's strategic consulting and advisory services are available to review customer journeys, map communication touchpoints across print and digital, and identify gaps that detract from the customer experience.
Doxim’s CCM platform supports customer communication goals within a secure and compliant CCM framework. With Doxim’s CCM platform and expertise, insurers can:
- Engage with insurance customers and brokers via print, PDF, HTML, email, text, and online interactive experiences.
- Generate and deliver insurance policies, bills, statements, and any other customer documents via print and digital channels through a single provider.
- Store documents securely online and enable customers to self-serve.
- Gather and utilize customer data to continually improve communications.
- Encourage customers and brokers to adopt digital communication channels.
To read more, download our white paper entitled: Insurers without a customer communication plan are at significant risk
VP Sales, Financial Services North America at Doxim
Scott has 25 years of experience in Customer Communications Management (CCM), with a primary focus on delivering exceptional results for the financial services industry.
In his current position as VP Sales, Financial Services North America, Scott leads a team of sales executives who sell Doxim solutions to the financial services industry, including Wealth, Insurance, Banking and Credit Unions.
Scott leverages his extensive knowledge of CCM, regulated and financial services to improve customer experience, drive operational effectiveness and achieve cost optimization through digital technologies.