Digital Insurance Trends 2022 – Customer Experience in Insurance Comes to the Fore  

by | Mar 7, 2022

Digital trends

5 Digital Insurance Trends Shaping Customer Experience

Traditional insurers are finding it difficult to remain competitive in today’s dynamic, digital environment. Insuretech start-ups are thriving in what is now an experience economy – consumers value experiences and emotions over and above products and services. These innovative, technology-led organisations are delivering an exceptional customer experience by adapting to and meeting the ever-changing needs and expectations of consumers today.

Among IT spending in the insurance sector, customer experience (CX) will have a 37% market share by 2024, rising at a CAGR of 17,5% to reach 50 billion USD – According to a recent IDC InfoBrief sponsored by Liferay

It’s clear that without a customer-focused strategy, insurers will struggle to attract and retain customers. To improve customer experience in insurance, insurers will need to change the way they interact with customers.

According to this new IDC InfoBrief, “providing an excellent and personalised experience to new digital customers is a must for any insurer to build loyalty and long-term relationships, with 60% of insurers saying attracting and retaining customers are their top priorities

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digital-communication-with-customer

Looking ahead to the remainder of 2022 and beyond, we have identified 5 emerging digital insurance trends. Across the board, the focus on customer experience enhancements is clear:

1. Omnichannel is driving insurance customer experience

Following the pandemic, customers are embracing digital interactions with their service providers more than ever before – a trend also noted in insurance.

“In times of COVID-19, in EU markets, only 28% of consumers used to favor digital contact with their agents before COVID-19, increasing to a whopping 43% during the pandemic” – EY Global Insurance Consumer Survey

Meeting the needs of all insurance customers does, however, require an omnichannel communications strategy.

By constantly communicating valuable information to your customers, you can build stronger relationships. But to build trusting relationships, you need to keep communications integrated across channels. Otherwise, consumers may get unsynchronized messages across channels, eroding the customer experience.

To provide integrated omnichannel communications, you need a communications portal that gives your business users the ability to view, manage, edit, and report on all communication channels, a single view of the customer. That way, every interaction with the customer is part of a seamless communication journey that presents a unified and engaging front to them.

2. Reducing complexity and faster processing times is key

The insurance industry is notorious for being paper intensive. This has a negative impact on customer experience as it is time-consuming and leads to frustration.

Two of the top five insurance customer requirements are related to speed, based on the 2020 Gartner FS Customer Experience Survey

TOP CUSTOMER EXPECTATIONS FOR INSURANCE TRANSACTIONS

Top requirements for customer engagement

Transaction is safe and secure: 84%

Providing me fast response and claims resolution in an emergency: 75%

The content I am looking for is easy to find: 68%

Providing me guidance on the right product I need to cover my risks: 60%

The transcatin happens at a speed I am okay with: 57%

n = 1,025 insurance customers.   

Source: 2020 Gartner FS customer experience survey

To meet insurance customers’ growing requirement for speed and simplicity – shaped by digital services provided by other service providers in various industries – insurers will need to automate manual processes, integrate digital channels with their back-end systems, and improve third-party processes.

Insurers should consider having a comprehensive customer communications management strategy. Such a strategy will enable them to service customers quickly and efficiently via both digital channels and human teams. A Customer Communications Management platform supports this approach by recording every communication with a customer, including their personal documents.

Personalised, interactive video is also a great CX tool. It drives personalised digital customer experiences, such as interactive policies that offer visual engagement and real-time interactivity. It can help simplify complex policy information and be used as a tool to help guide the customer on the right product to cover their risks.

3. Leveraging customer data to enable personalised interactions

Based on their experiences with retailers, banks, and other sectors, insurance customers place increasing value on personalisation when it comes to the products, pricing, and communication they receive from their insurer. This expectation goes far beyond being addressed by name or receiving vaguely suitable offers based on broad segmentation.

The more routine tasks your insurance organisation brings online, the richer the data you gather about your customers becomes. Since the digital transformation boom began, many insurance organisations have been sitting on a goldmine of data, without focusing on how best to use it. To ensure your competitive advantage, your organisation will need to consider all the ways in which data can be turned into insight and then into action.

One of the reasons insurers struggle to leverage customer data is a lack of a “single source of truth” – an integrated source of real-time data that is easily accessible by business users. Technologies like CRM (Customer Relationship Management) and Customer Communication Management platforms can help insurance organisations integrate and leverage data sources to access personal, usage, behavioral, and other types of information in real-time. Customers can then be targeted with relevant products as well as personalised, usage- or behaviour-based pricing. For example, if they drive less, they want to pay less for insurance coverage

Sixty nine percent of consumers would share significant data on their health, exercise and driving habits, in exchange for lower prices from their insurers, and 66% would also share significant data for personalised services to prevent injury and loss, as reported by Accenture’s global Insurance Consumer Study.

5. The shift from paper to digital experiences

Moving to paperless insurance should achieve a quick ROI and an ongoing cost-saving for the insurer. But achieving cost savings should not be the only objective of going paperless. This is an ideal opportunity to enhance the customer experience.

Fortunately, improving customer experience through a digital option is easily done. What was a flat, unnavigable policy document on paper, transforms into a fully indexed, easy-to-navigate document digitally. A paper bill becomes an interactive, digital bill that presents the most important information in a clear and concise manner.

Paperless insurance as a business objective should be seen as a journey, not a finite destination. There will always be customers that prefer paper documents, and insurers need to cater for this by offering a range of channels, with the ability for customers to select their preferred communication methods.

Omnichannel-platform

An omnichannel CCM Platform can help your insurance company reach its CX goals

  • Build trust with insurance customers via communication (via print, PDF, HTML, email, text, and online interactive experiences).
  • Generate and delivers insurance policies, bills, statements, and any other customer documents via print and digital channels – through a single provider.
  • Leverage interactive video to drive personalised digital customer experiences, such as interactive policies that offer visual engagement and real-time interactivity
  • Store documents securely online and enable customers to self-serve.
  • Encourage customers and brokers to adopt digital communication channels.
  • Gather and utilize customer data to continually improve the personalisation of communications.

Investing in a reliable customer communications management (CCM) platform is an essential part of providing the kind of omnichannel experience that insurance customers now expect. It helps provide a great customer experience, and builds engaged relationships, which in turn results in customers for life and a competitive advantage in the current marketplace.

3. Expansion of digital products

As banking customer behavior shifts, banks must move with the times, or risk getting left behind. Many banks today are exploring the power and potential of open banking, which can allow them to offer more innovative products and services to their customers, as well as to better compete with fintech companies and other non-traditional financial service providers.

As you shift your banking business model to reach new segments or provide an enhanced array of services, communication becomes even more pivotal to your success. After all, if your customers don’t know which new services they qualify for, or how those services will help them meet their goals, then they are unlikely to explore them further. CCM technology can be leveraged here to provide personalized on-statement messaging that directs customers to the right products and services, as well as 1:1 personalized “explainer” videos to help them get started.

Adjusting your bank’s priorities to thrive in 2023

In an era of constant change, the key to successfully transforming your bank’s business model will be to stay attuned to the changing needs and preferences of customers, and to be open to exploring new opportunities and technologies that can help your FI stay competitive and relevant. But these new opportunities are doomed to fail if you do not clearly communicate their benefits and make it simple for customers to access them.

That is why transforming your customer communication strategy is the best first step to broader digital transformation. By updating your approach to communications to meet omnichannel customer needs, you also position your bank to communicate the benefits of changes in your broader organization, like new or enhanced products and services. The pace of change in banking has never been brisker – but with the right strategic approach to these changes, the future is bright.

Investing in a modern customer communication management and engagement platform is an essential part modernizing your banking strategy, as it can provide the personalized digital experiences that will keep your bank or credit union ahead of the competition. It helps provide a great customer experience, and builds rich relationships, which in turn results in customers for life and a competitive advantage in the rapidly evolving financial marketplace.

How Doxim can address the banking customer communications trends identified and help future-proof your digital banking strategy

banking customer communications trends

Doxim’s experienced consultants and omnichannel platform can help transform your customer experience in many ways, including:

  • Gathering and utilizing customer data to continually improve the personalization of communications.
  • Building trust with customers via communication (via print, PDF, HTML, email, text, and online interactive experiences).
  • Leveraging interactive video to drive personalized digital customer experiences, such as interactive statements, bills, or reports, that offer visual engagement and real-time interactivity
  • Putting customer data, including customer statements, at the fingertips of your service representatives for immediate and personal service.
  • Making a meaningful connection with value-added content, like information about philanthropic activities, on customer statements.

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