The insurance industry has undergone a considerable evolution over the past decade, as CX and customer service become key differentiators. Providing better CX is a combination of incorporating new technology with a more customer-centric mindset based on more efficiency, convenience, and engagement.

Insurers have realized the value in redesigning their systems and processes to support more intelligent workflows that link customer data with AI algorithms, and support greater decision making, predictions, and automation. This approach empowers employees to better service customer needs, thereby driving customer retention and acquisition strategies. A 2020 report from the IBM Institute for Business Value (IBV) found that 42% of customers do not fully trust their insurer, and most insurers (60%) agree that their organization lacks a true CX strategy.

Insurers can take several steps to address these concerns, by taking a more customer-centric approach to providing services, while incorporating technology to make interactions more integrated and seamless. Some of the key steps in use today are described below.

Support for omnichannel engagement via technology

Today’s customers are not content to interact with insurance providers solely through voice or written correspondence. Insurers need to be available on a 24/7 basis to answer policy questions, intake claims, and handle administrative issues, and newer engagement channels, such as SMS, social media, and web chat apps, can be useful in allowing customers to quickly connect with their carriers when voice agents are unavailable. As part of this strategy, insurers should consider the use of intelligent bots that have been trained to understand intent, so that any queries or issues can either be handled through automation or be quickly escalated to humans.

Insurers also need to integrate their systems and platforms to permit seamless conversations across multiple channels with customers. For example, a customer service agent on the telephone should be notified that the customer they are speaking with just requested a quote on an insurance policy a few minutes ago directly through the company’s website. The agent should be able to view and modify that quote, and then send it back by text with personalized options for the customer to finalize on their mobile device while they are receiving additional insight and advice from the live agent via voice.

Frequent engagement with customers

Traditionally, customers would only interact with insurers during the initial onboarding process, when they needed to file a claim, or when their policy was up for renewal. Insurers should devise a strategy for driving engagement throughout the year to not only ensure that customers can get answers to whatever questions they may have, but to provide education, insight, and other tips that can build greater affinity between the customer and the provider. These tips can be tangentially related to insurance, but the ultimate goal is to position the insurance carrier as a trusted entity that views the customer as a person, rather than just a premium payment.

A reduction in the use of insurance industry jargon

Similar to healthcare and financial services, the insurance industry is full of technical terms, jargon, and complex concepts. By rewriting or recasting more complex insurance terms and concepts into laypersons’ terms, it becomes easier to position and sell additional products or coverage to customers, while engendering a greater level of transparency and trust.

Demonstration of the value of sharing customer data

Some insurers have been requesting the use of customer-supplied data, to provide benefits to both customers and to the insurer. One notable example is Allstate’s Drivewise, which uses driving behaviors to help calculate policy premiums. By tracking the driver’s habits via a smartphone with the Drivewise app installed, behaviors that are deemed risky, including high speeds, hard braking, and late-night driving, can be tracked, and then used to match premiums to risk levels. Drivers receive a 10% discount for setting up Drivewise, an additional 6% discount for remaining active, and, if they avoid the risky behaviors, can save even more.

The challenge with implementing this type of program is largely concerns user privacy, as some customers simply will not be happy sharing data that paints them in a less than desirable light. Insurers can address these concerns by highlighting not only the monetary savings possible with such programs, but can appeal to more basic aspects, such as the increased safety and security that are usually the result of avoiding risky behaviors.

Leveraging AI and other new technology to improve efficiency and speed

Insurer IFFCO Tokio General implemented an AI-based Claim Damage Assessment Tool (CDAT) that uses advanced computer vision and deep neural network-based techniques to improve claim processing speeds. Using an app to take and upload pictures of vehicle damage, the AI algorithm can be used to quickly identify and assess the type and extent of damage incurred to the vehicle. The AI engine analyzes the photos and then generates a list of the parts that need to be repaired or replaced, and are then looked up in the historical claims database to assess the average costs to repair or replace. Then, the total cost to repair is provided and sent to the user’s mobile application, and if the customer accepts the claim estimate, payment is made directly to the customer’s bank account. By using AI, IFFCO Tokio General customer claims were settled from beginning to end in 15 minutes, instead of 3 to 4 hours, and processing costs decreased by 30%.