Why Insurers Must Enhance Customer Experience After Covid-19

By Jasvinder Gakhal, Managing Director, Direct Line – Business

Customer experience has become even more important for insurers.

Since the start of the pandemic, consumer wants and needs have shifted, and so has their behaviour. 62% are shopping online more than they had done pre-pandemic, with online orders surging by 259% compared with 2019.

And the majority of shoppers now say they’ll only keep spending with brands that provide a first-class digital experience.

This raises new questions for insurers. How do they adapt to the new climate and meet changing customer wants and needs? In what ways can they challenge perceptions they’re behind the curve when it comes to customer engagement?

By streamlining customer journeys, innovating products and choosing the right technology, insurers will position themselves for long-term success.

Boosting customer journeys

One way insurers can build meaningful relationships is by creating a streamlined customer journey.

Think of the lightning-fast experience provided by the likes of Amazon when ordering a product for next-day delivery. This is welcomed by consumers, who expect the same level of service when booking tickets, streaming a film, or buying insurance.

If insurers do not meet demands for flexibility and streamlined customer journeys, they could risk getting left behind.

The personalisation push

Personalisation has become key to driving a successful customer experience, according to McKinsey.

From social media to consumer technology and entertainment, personalisation is underpinning the content platforms we interact with on a daily basis. Many of us will have become familiar with our favourite streaming services’ “you might be interested in” feature popping up on our TV and laptop screens.

All this is creating a psychological need for tailored experiences – as shown by research from Deloitte which suggests that consumers are willing to pay more for personalised products.

And personalisation is now influencing the insurance world. We’ve seen major players raise their game, launching customisable packages, as well as the rise of insuretech businesses which put personalisation at their heart.

And there are a number of ways that insurers can tailor their products to keep the customer front of mind.

With the right company culture and teams with a mission to boost the customer experience, drawing on research and insights to ensure products meet evolving demand, insurers can ensure that flexibility is kept front of mind and instilled in every single product. This will ultimately allow them to capitalise on the personalisation revolution. Which should ultimately bring with it increased revenue.

Technology: the key driver

Choosing the right technology is critical for insurers to avoid being left behind by the wave of start-ups and insuretechs. It’s been highlighted by Deloitte as a critical differential in the insurance sector – something insurers shouldn’t ignore as they look to enhance the customer journey.

One often overwhelming challenge can be legacy systems. These are expensive to maintain and difficult to build upon. Leaders can overcome this by thinking innovatively about how to change their infrastructure. Finding solutions that minimise disruption, while setting their business on the path to achieving long-term technology goals, is key.

Adopting technology that balances core functionality with the speed and cost of change is crucial to overcoming this challenge. If implemented correctly, this can support a more flexible and agile approach to serving customers.

How can insurers streamline the process? Alongside putting in place innovative solutions to technology problems, finding the right technical partner can be a great help. It will assist in overcoming concerns regarding the pace of change and any additional complexities.

Another benefit of finding the right partner is that they’ll point an insurer towards next-generation technology that will bolster customer relationships. For example, cloud software can help businesses upscale, support virtual contact centres and meet omnichannel customer demand.

Embracing change

During these uncertain times, insurers must strengthen customer relationships through investment in personalisation, greater simplicity, and transparency.

This will help them to level up customer engagement and create long-term prosperity – for their business and the wider insurance sector.