Top Customer experience challenges on Insurance industry

1) Developing an omnichannel sales process

Online shopping has changed consumer behavior and expectations. Today, people want to be able to research, explore, and purchase products and services across multiple channels including websites and apps. The same is true when it comes to the insurance industry where potential customers want the ability to research and purchase products and services online.

To be specific, a recent survey conducted by Accenture revealed that more than 50% of the insurance customers have a preference for using digital channels when looking for product information or updating personal information with their insurer. Not surprisingly, additional research has shown that smartphone traffic to auto, home, and life insurance websites has increased by 84% over the past two years.

2) Building apps and websites that enable customers to manage their policies

Customers today value the ability to manage their insurance policies across digital channels, primarily through mobile apps and websites. According to a survey conducted by Deloitte, 90% of life insurance customers want to manage their policies through digital channels.

While insurance companies are taking note of the importance of offering customers a great online customer experience, not all have managed to succeed. Only about 15% of customers are satisfied with the digital experience insurance companies actually offer.

New insurance startups or InsurTech companies are among those who have successfully managed to develop apps and websites that contribute to great customer experience. These newcomers have managed to create a fully digital customer experience that is actually exceeding customers’ expectations.

Other insurers such as All-State, Geico, and State Farm have succeeded in building mobile apps with a variety of functionalities designed to make life easier for their customers. All-State, for example, has developed camera functionalities that enable customers to submit claims with images of the damage to their vehicles.

3) Using IoT to improve personalization and business decisions

The insurance industry is getting smarter thanks to the incorporation of the Internet of Things (IoT) and connected devices. Today, IoT has the potential to give insures the ability to collect valuable data to provide customers with greater levels of personalization.

IoT can benefit insurers by providing them with the capacity to collect valuable customer data directly from their person, vechiles, and homes. This data can then be analyzed and exploited to provide valuable personalized advice to prevent accidents, the loss of property, and more.

Smart home devices or sensors in a car can capture and assess important information in order to  determine if there customers face signifiant risks. In these cases, insurers can use this data and send notifications to customers to help them avoid any potential damage from an approaching storm or warn them about dangerous driving tendencies or conditions.

In healthcare, connected devices like wearables can monitor a customer’s vital signs and inform them when there is a significant risk of a heart attack, stroke, and more. Insurers have even implemented programs that use data from wearables to reward customers for exercising in an effort to help customers live healthier lives. 

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