Customer experience is becoming an important competitive differentiator in the insurance industry. Unfortunately, the industry statistics reveal the catch up that is needed.
Forrester studies report 1 in 3 customers who endue a bad claims experience switched insurers within a year. About 44% of customers have had no interactions with their insurers in the last 18 months.
According to Forrester Research, customer experience health Insurers provide is among the lowest, ranking 15th out of the 19th categories.
A Gartner report stated that 8 out of 10 customer interactions will happen without manual touch by 2022. On the other hand, fully engaged customers represent 23% premium in share of wallet
Research from analytics major, SAS shows that typical insurer’s customer communications are 90 to 90% sales focused and only 10% are service-focused. More than 90 percent of insurers do not communicate with their customers even once a year, 20 to 40 percent will not receive single communication all year.
Investment in customer experience pays back, quickly and heavily. McKinsey’s global research shows carriers invested in customer experience are able to inspire loyalty and attract new customers. Carriers that provided best-in-class experience have generated more growth new business and about 30% higher profitability than firms with low customer experience.
Providing great customer experience is simple.
- Think of omni-channel customer service.
- Design policy cycle management for customer self-service and smart automation
- Deliver personalized service
Insurers have multiple IT solutions to deliver great customer experience. Portals, chatbots, learning Bots, and Virtual Personal assistants (VPA) can be deployed at minimal cost and efforts. Investment is not the issues, but simply the commitment to “customer centricity” that matters for realizing scintillating customer experience.