The most successful businesses of today build their enterprises around their customers. And for customers, one of the key factors in determining loyalty is experience. Majority of consumers say that their experience with a brand or company holds as much weight as their offerings. However, there’s still a significant divide between their expectations and what organizations are delivering.
The same is true in the insurance industry. For decades, customers had perceived insurance as commodity products they needed to get based on availability. However, in the last few years, insurance offerings with various options have saturated the market, creating more sophisticated buyers with a broader range of wants and needs. To meet their ever-changing needs, insurers must work quicker, be nimbler, and make customer experience a priority.
Increasing focus on customer-centric models
The insurance sector has started to shift to a more customer-focused model. As a result, most insurers understand the importance of customer experience initiatives and use them through the buyer’s journey. Other new changes insurance carriers are making include the following:
- They incorporate new channels so they can communicate with their customers for concerns and questions regarding their policies.
- They change the language in communication and documentation and use less jargon.
- They leverage technologies and applications like P&C insurance software to meet demands and expectations for more personalized experiences and tailor-made coverages.
- They strengthen customer relations by engaging with them regularly instead of only at renewals.
Recent reports revealed that over forty percent of consumers still don’t have as much trust and confidence in their insurers as they should. What this means is that there are still a lot of opportunities for improvement.
Importance of prioritizing customers
In the highly competitive market of insurance, customer priority has become the key to success. Additionally, consumers have much higher standards now than ever. And most are more likely to do business with organizations that present them with their preferred options or personalize offerings and services. Moreover, a lack of focus on customers can potentially result in churn and draw prospects to competitors instead of reeling them in.
How insurers are improving the customer experience
Insurance carriers are improving CX largely through technology, specifically by having precise data in real-time, or as close to it as possible, to address challenges and needs. As the foundation of their initiatives, insurers are focusing on collecting data with all client-related workflows and processes, including but not necessarily limited to claims, renewals, and purchasing. Having access to data, insurance companies better engage customers with personalized policies, even if the experience of the interactions is digital in nature.
It’s not hard to see why there’s an increased focus on customer-centric business models, especially in the insurance sector. After all, it allows carriers to attract more customers and strengthen their relationships with existing clients. In addition, by designing processes, workflows, services, and products around consumers, insurance companies can stand out from their competitors, gain a competitive edge, and present themselves with more opportunities to grow.