3 Ways Insurance Companies Can Improve Customer Experience

Last Updated: 

April 11, 2023

Although it seems that the insurance sector does not advance or transform, since they have sold the same product since its origins centuries ago. However, it is the opposite; there are many things that are changing.

In this article we explore what "Customer Experience" is and we propose 3 ways that insurance companies can implement so that customers in this sector feel more satisfied, since like everything in life it is about "feeling". We will tell you how.

Key Takeaways on How Insurance Companies Can Make Customer Experience Better

  1. Product experience: Improve the insurance sector's product experience by providing personalised offers, clear information, and designing policies with completely personalised coverage and services. Use technologies like smart-contracts, blockchain networks, and intelligent decision-making systems.
  2. Shopping and service experience: Enhance this experience in the insurance sector by simplifying the flow of interactions, such as enabling customers to sign policies online. Use digital tools for process automation, personalised operations, and communication channels to guarantee the best customer journey.
  3. Consumer experience: Improve consumer experience in the insurance sector by offering personal attention and support, such as through chat systems. Establish direct, continuous communication channels adapted to people's preferences, and continuously monitor customer feedback to implement corrective measures and promote positive experiences.
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The one-way relationship between brands and consumers that set the commercial pattern in the past is now history.

The new generations of clients, more informed and knowledgeable about all the offers on the market, do not hesitate to change insurance providers if they do not achieve the expected experience. Therefore, it is important to reflect on the strategies of an insurance company in order to focus on improving the customer experience.

Aware of this paradigm shift, insurers are integrating different technologies into their systems that allow them to get to know their customers better in order to anticipate their expectations, interests and demands, and thus achieve loyalty and retain them. They are beginning to draw new lines in the strategy of an insurance company.

For this reason, the insurance industry is focusing on Customer Experience Management (GEC), which seeks to understand, improve and optimise the company's processes in order to increase customer satisfaction and loyalty. All the company's actions are aimed at improving the customer experience.

But specifically, what is the "'Customer experience"? The customer experience is the internal and subjective response of customers to any direct or indirect contact with a company.

The customer experience covers all aspects of a company's offer: the quality of customer service, communication, products and services, ease of use and reliability, digital channels, the point of sale, etc.

In this context, in recent years’ experience management has emerged with force as a strategic approach to customer centricity.

It is important that this approach is done from the perspective of the customer, and, in that sense, the thoughts, emotions and perceptions of customers about interactions with the organisation must be analysed and anticipated.

What should insurers do to improve the digital experience of their customers?

From the moment a potential client begins to evaluate the different insurance offers, until when they as a user seek assistance or file a claim, they have expectations regarding the service they expect to receive.

Throughout this customer journey, insurers should have previously mapped out their strategy as an insurer to accommodate the unique needs of each consumer to provide the best customer experience and win loyal buyers who will be important ambassadors for their business on the road. the future.

Below, we list 3 ways to improve the customer experience in the insurance sector

1. Product experience.

It is the experience that occurs when consumers interact with products; For example, when consumers search for products, they examine and evaluate them.

How to improve this experience in the insurance sector?

With personalised offers and clear information.

Today's consumers, well informed and always connected, demand personalised treatment from companies, which allows them to receive offers based on their interests and preferences, and something more: to be listened to.

Insurance customers want to receive complete information from their company -how their premium is calculated, what covers them, what law protects them or what rights and obligations they have- and, more and more, they require interceding in the construction of their product, removing or expanding coverages.

To carry out the personalisation of the insurance offer, it is necessary to design and develop new products, services and operations that take into account the particularities of each individual and their specific circumstances.

In the field of insurance, this translates into designing a policy for each individual with completely personalised coverage, limits, capital and services, with an easily executable process and operation.

To achieve this, it is necessary for companies to establish individual 'ad hoc' contracts with each client thanks to new technological solutions such as smart-contracts, blockchain networks, intelligent decision-making systems in real time and rule engines, that they are capable of managing the universe of conditions that apply to each individual.

2. Shopping and service experience.

Shopping and service experiences occur when a consumer interacts with a store's physical environment and/or with its staff and its policies and practices.

How to improve this experience in the insurance sector?

Simplifying the flow of interactions. Example: Sign policies online.

Also in this phase, digital tools make it possible to optimise the relationship that insurance entities maintain with clients, from recruitment to cancellation, through the renewal of the policy or benefit.

We can apply technologies that provide us with real-time decision-making capacity, process automation and robotisation of certain actions and that are also capable of executing personalised operations for completely different digital contracts.

These tools allow us, in turn, to deploy individual communication channels and plans to guarantee the best customer journey for the insured.

A specific example to favor these customer experiences would be to offer 100% online hiring.

Just like the purchase of a product in the retail sector, today the services and products of the insurance sector can be contracted over the Internet from a computer, tablet or smart device and in a simple way through the use of the digital signature. In fact, there are Insurtech that allow the contracting (and cancellation) of insurance through an app from the insurer itself.

3. Consumer experience.

Experiences also occur when consumers use the products or services.

How to improve this experience in the insurance sector?

Accompanying the customer with personal attention. Ex: Chats

After the purchase, and to guarantee user satisfaction, the insurer must enable the necessary mechanisms to measure the results and guarantee that the decision made by the client is valued positively and, otherwise, retrain and relearn the operation once in possession of customer feedback.

To do this, insurers must establish direct, continuous communication channels, adapted to people and their communication preferences and through which they can continuously monitor their "perception of the company".

Only then will it be possible to implement measures both to correct negative experiences and to promote actions with "fan" customers that generate a pull effect by attracting other users.

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