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How insurers can deliver better customer experiences


Neutrinos - June 18, 2020 - 0 comments

Offering top-notch customer experience is no longer just about offering the right kind of service at the right time. So, how do insurers deliver better customer experience? They need to constantly think on their feet, come up with innovative solutions and stay ahead in the game by offering streamlined & seamless experiences across the journey for the customer.  It is incumbent on the management to initiate the shift and equip the insurers with the necessary tools to achieve their goals. 

“Today’s consumers do not buy just products or services – more and more, their purchase decisions revolve around buying into an idea and an experience.” [McKinsey]

Transforming the customer experience in insurance

Today’s market has empowered the customers who demand nothing short of the best customer experience across the journey.  In order to achieve this, insurance companies and insurers need to embrace digital transformations to offer a comprehensive approach to their customers.

A successful approach that ensures the finest customer experience has four elements,

Source: https://www.mckinsey.com/~/media/mckinsey/featured%20insights/customer%20experience/cx%20compendium%202017/customer-experience-compendium-july-2017.ashx

Inspiration

Change begins with redefining business goals right on top, by the senior leaders/management. Organizations that are customer focussed need to change their business model and operational systems as well to ensure that goals are met. This will help improve insurance product sales, cross selling/up selling opportunities and better customer satisfaction levels. In turn, insurers need to be rewarded and the required training provided to help them adapt to the changing environment.   

Insights

Developing insights into customer lifestyle and linking that to insurance operations is how insurers can ensure enhanced customer experience. Putting in place customer centric processes are the best way to achieve efficiency and for insurers to offer well-informed suggestions to customers, and to constantly innovate on products and services. 

Telematics is a tool that allows insurers to obtain real time data from customers, identify key differentiating areas and offer solutions to customers based on the same. This gives them additional points when it comes to premium pricing which translates to customer experience.

Improvements

Once insights are gathered, improvements need to be made to redesign the customer journey from path to purchase using the various digital tools available.

It is good to specify the “wow” moments and “pain” points when incorporating Artificial Intelligence [AI], Robotic Process Automation [RPA] and other Internet Of Things [IOT] related solutions into the system.  The need for chatbot & virtual assistants to resolve queries and offer inputs instantly is crucial. Since the insurance industry relies heavily on data, it would be helpful to know how to utilize predictive analysis to help convert the data into solutions. 

Institutionalisation

Sustained improvements are possible only if the entire organisation is aligned around the effort and the solutions implemented rapidly. McKinsey has in fact done some research in this space and listed down five best practices for achieving high levels of customer experience.

  1. Strong management ownership & clear definition of new business goals is the best way to drive change across the enterprise.
  2. Core measurement architecture which is used to study and analyse the relevance of processes and improve on the same based on feedback.
  3. Lean-management practices incorporated with communication across different levels of management.
  4. Proactive as against reactive approach from the top management that encourages insurers to interact and obtain feedback from customers to ensure their demands & expectations are met, if not exceeded.
  5. Periodical training imparted to insurers to help them hone their skills, learn and adapt to new technologies and become the champions of the brand. Engaged employees will result in innovation, proactiveness and better customer relations as well as other opportunities.

Essentially insurers need to shift their focus from products to the customer, and work with the tools available to create an ecosystem that leads to a win-win situation for them as well as for the customers. The need to understand how one strategic shift can lead to a cascade of potential benefits is what matters.

At Neutrinos, with our insightful and incisive approach, we ensure that clients are able to leverage the disruptive edge of technology. We offer in-built capabilities for the adoption of emerging and futuristic technologies such as IoT, AI, ML, and more. If you are looking for digital insurance solutions, connect with us now!

 

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