Customers are at the center of the most prosperous businesses of today. And the single most crucial aspect influencing a customer's loyalty is their experience. According to research, 84% of customers believe that a company's experience matters just as much as its goods or services, yet there is a huge gap between what customers anticipate and what the majority of companies supply.
Modern insurance businesses operate similarly. Customers of insurance for long years perceived insurance as a commodity product they had to buy based on what was readily available. A more intelligent consumer with a wide variety of demands and wants has emerged as a result of the market becoming saturated over the previous ten years with more insurance products and possibilities. To adapt to these new demands, insurers must become more agile, move more quickly, and place a premium on providing excellent customer experiences (CX).
5 Ways insurance companies can retain customers through technology:
- Showcase the worth of customer-provided data
Accurate data must be available (in as near to real-time as feasible) to adequately address demands and obstacles if insurance CX is to be improved through technology. Insurers should concentrate on data collection across all client-related operations, including purchasing, renewals, and claims, as the foundation of their CX initiatives. Even when the engagement is digital, insurers may build more individualized insurance plans and experiences with access to the correct data at the right time. Customers are then more likely to trust businesses and provide more information willingly in the future as a result.
- Increase the utilization of AI from beginning to finish of the process
According to the IBV research, integrating AI into the insurance customer journey may considerably raise customer happiness and retention. Companies will gain greater speed, accuracy, and efficiency by starting with strong industry understanding and AI-based technologies. Additionally, the improved efficiency gives insurers more time to build the personal relationships that clients want when choosing an insurance plan.
The IFFCO Tokio General Insurance Company is a prime example, which had to enhance its claim procedures after finding that up to 30% of its clients were dissatisfied with the evaluation of their claims.
- Make smart processes for the agent and the insured.
As exponential technology is incorporated into every stage of the process, insurers are beginning to see the potential of revamping their systems and processes and creating intelligent workflows that combine data with AI, straight through processing, automation, etc. Integrating operations across organizational boundaries empowers staff, makes clients feel recognized, expedites service, and provides them with quick insurance refunds or claim settlements. Additionally, automating and combining chores might lead to creative ideas that become useful for the company.
- Blockchain-based Decentralized Distributed Trust
While several small-scale advancements are being made in the insurance sector using blockchain technology, the major paradigm shift will occur when risk is viewed as a market. Think of a Decentralized Autonomous Organization (DAO) that has the intelligence to join risk pools that are accessible worldwide and convert them into risk markets that anybody in another location may join.
Risk markets can serve as an alternate form of investing for common people to make investments and earn rewards. Risk markets can be subscribed to by AI agents, and the pricing can be changed in real-time. The insured can benefit from financial opportunities and peace of mind. By using smart contracts to address moral hazards and bad faith, intelligence can automatically build trust.
- When communicating with customers, use an omnichannel strategy
Insurance companies should concentrate on connecting their platforms and systems to enable agents to conduct interactions with consumers that flow naturally across various channels. A customer service representative on the phone, for instance, might be informed that the person they're speaking to just requested a quote for life insurance through the website. The agent can then easily modify the quote and send it back to the customer via text message with personalized options so that they can finalize it on their mobile device while receiving the best guidance from the live agent.
At the moment, insurers mostly use the phone (51%) and conventional mail (50%) to contact consumers. These techniques are costly and lead to haphazard encounters. Customers are searching more and more for ways to communicate online, including through a company's website.
Other Use Cases of Technology in Insurance
Here are some further examples of how InsurTech is utilizing modern technology:
- Insurance businesses are spending a lot of money on artificial intelligence to promote product innovation, streamline procedures, and improve client satisfaction.
- Providers of life and health insurance are investigating the use of wearable technologies. They are accessing precise real-time data regarding a patient's physical health via biometric sensors. The industry will surely gain greatly from this ground-breaking technology. Additionally, it altered the underwriting process for life insurance products.
- Natural language processing (NLP) is another tool being used by certain insurers to automate repetitive operations, boost productivity, and cut costs. NLP enables insurers to develop chatbots that can handle basic claim processing, onboard new clients, and reply to consumer inquiries.
When compared to other rapidly growing sectors, like fintech, the InsurTech market is still relatively young. As a result, insurers have not yet fully tapped into the advantages and possibilities of employing modern technologies.
Ironically, by automating routine operations and giving consumers more ways to interact, technology is humanizing transactions and customer service. Smartphones and mobile applications are essential for revolutionizing the sector and giving customers and insurance companies more control. They stimulate increased engagement and brand loyalty, simplify simple communication and make it possible for suppliers to deliver goods and services effortlessly.
While startups are more concerned with recruiting clients, many established suppliers prioritize customer retention. However, for both, developing loyalty and trust is essential. Long-standing customer impressions need to be changed, and trust will only come through effort.
Barriers and Solutions for InsurTech
The privacy concern is the biggest roadblock to InsurTech. Using distributed ledger technology, credit ratings are tracked in a database that is shared across several businesses and websites. It is always evolving, which makes data protection rules problematic. Regulators that use a variety of techniques to control distributed ledger technology must also address privacy issues from other jurisdictions. Distributed ledger technology may be decentralized because of its collaborative character, which means no one entity can be held responsible when disagreements emerge. It is difficult to completely integrate with InsurTech because of this.
Companies interested in this technology should do their homework on the strategic legal considerations that apply to their industry and country. To keep current on international rules, another way is to be in continual communication with authorities.
By giving clients and service providers a simple, error-free, and secure method to conduct business, InsurTech is changing the insurance industry. Insurance businesses must make investments in new technology and develop solutions that are tailored to the demands of specific clients if they are to effectively serve their consumers. Contact TransformHub right once to integrate your brand's value with technical innovation.
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