Technology is revolutionizing Customer Experience in life insurance Space

Authored by By Vinit Kapahi, Head of Marketing, Aviva India

Over the last decade, most companies have focused a majority of their digital investments on automation and self-service. This first wave of digital transformation provided foundational capabilities, such as mobile apps, client portals, and the ability to transact on simple policies well-understood by the consumer. However, accelerated by the pandemic, the time has come to leverage digital to rearchitect how the field works and strengthen rather than replace human connection. For example, companies redistribute marketing and servicing work to corporate teams to allow reps to focus on value-added selling and relationship activities.

The last mile of the customer experience is an essential aspect of building customer retention and loyalty, and this is built on engagement. Be it a brick & mortar retail store, insurance company, an experience zone, a showroom, an e-comm store, a D2C website, or something as basic as a mechanic, last-mile engagement and experiences determine how likely it is for the customer to continue associating with a brand. In the past few years, last-mile experiences have had a sharp transformation owing to technology and the penetration of the internet and smartphones.

Digital technologies bring several disruptive trends to the insurance business, such as personalization, the shift to a platform economy, automation, and real-time based estimates. According to a PWC report, technology can help companies create phenomenal customer experiences and reap the resulting benefits: 82% of the top-performing companies report paying close attention to the human experience around digital and tech. In addition, there are mobile apps, eWallets, AI bots, and online banking, all of which can increase customer satisfaction. But companies must also focus their attention behind the scenes, enhance their fraud prevention, cybersecurity, and optimize their legacy systems.

AI, IoT, Blockchain, API, wearables, and Telematics are emerging technologies that have shaped tech trends and should be embraced to stay ahead of the competition as it enables insurance companies to provide a better customer experience while also increasing operational efficiency. For example, obtaining claim status information frequently necessitates multiple phone calls, emails, or even a visit to an agent. In addition, customer satisfaction suffers because of a lack of relevant web presence. Today, most customers want to track the status of their applications using digital technologies.

The insurance industry has begun shifting to a consumer-centric model focusing on CX. Few ways in which insurance companies can improve CX through technology:

Demonstrate the value of customer-shared data

Improving insurance CX through technology largely depends on having accurate data to address needs and challenges adequately. Therefore, as the backbone of their CX initiatives, insurers should focus on gathering data throughout all client-related processes, including purchasing, renewals and claims. With access to the correct data at the right time, insurers can create more personalized insurance policies and experiences even when the interaction is digital. This, in turn, increases trust and the likelihood customers of voluntarily sharing more data in the future.

Increase the use of AI

Companies will benefit from increased speed, accuracy, and efficiency by starting with deep industry expertise and AI-based tools. Further, the increased productivity opens up more time for insurers to develop the personal connections that customers are looking for when making insurance decisions.

Create intelligent workflows

Insurers are starting to recognize the value of redesigning their systems and processes and building intelligent workflows that pair data with AI, straight through the procession, automation, etc., to embed exponential technology at every step of the process. In addition, integrating functions across organizational boundaries empowers employees and allows customers to feel known, be served faster, and get instant policy refunds or claim payouts.

An omnichannel approach to interacting with customers

The use of multiple channels to make a single purchase is quickly becoming the norm, making it necessary for insurers to opt for an omnichannel model. Omnichannel distribution helps insurers reach the customer where they are most comfortable and provide them with a seamless experience. In addition, with a slew of devices, insurers now can remain connected with customers. The future of technology lies in the internet of things and wearable technology, which allow insurers to communicate more frequently with customers and gather more data.

While technology takes the front seat, customers look forward to engaging with insurance providers who display empathy and approachability. Therefore, life insurers need to evaluate their digital transformation journey and map out their route towards simplicity and digitization. Once insurers succeed in delivering a hassle-free experience using technology, it will lead to building consumer trust and ensuring a long term relationship.