The Road to 2021 Customer Ecosystem in Insurance

Tharsha K

The disruption in customer experience is happening at a rapid phase where companies become obsolete if they still treat the customers the same way. According to Mckinsey, a fundamental change of mindset focusing on the customer, along with operational and IT improvements, can generate a 20 to 30 percent uplift in customer satisfaction, a 10 to 20 percent improvement in employee satisfaction, and economic gains ranging from 20 to 50 percent of the cost base addressed in the various journeys. 

The optimization of the customer experience journey has never been timelier and more urgent for Insurance Industries. Identifying the differentiators in traditional businesses due to emerging technology implementation is a strategic move to pace ahead. The table given below shows an estimated time-saving for various insurance processes.

Technological innovations have helped businesses to delight the customers by providing the best customer services, and at the same time improve brand image. Providing appropriate information in a real-time context to the individual customer is being achieved through advances in data, predictive analytics, artificial intelligence, automation and digital technologies. Therefore, offering personalized services is considered as one of the top priorities in the insurance industry.

The emerging value drivers in the insurance journey roadmap will accelerate the insurers to reconstruct their businesses and secure their future competitiveness. A sophisticated technology-enabled customer journey can help deliver high-impact customer experiences rapidly and effectively

Key technologies that can take forward and influence the customer journey in the insurance industry are discussed here:

Awareness / Consideration

Gone are the days where a prospect visits the insurance website to search for relevant policies to subscribe to the services. With the advent of Big Data and data intelligence, it is now expected of insurance companies to analyze, understand, and predict the individual customer’s preferences and offer services accordingly.

Hyper-personalization goes beyond identifying the customer with their name and respective details. Recommendations can extend in targeted promotions, campaigns and services based on individual viewing patterns.

Research / Convert:

Paperless is not just an environmental benefit but also an immediate benefit to ease and attract prospects to purchase insurance policies. The usage of Augmented Reality (AR) / Virtual Reality (VR) helps simplify policy education. The thoughtful videos can explain real-life situations to the prospects and make them understand the importance of health and individual insurance coverage plans.

Cognitive automation interacts with multiple legacy systems and provides the right solutions to the customers. With cognitive tools, automation of intensive time-consuming processes like policy quotes and servicing results in increased operational efficiencies.

Purchase / Onboard:

Personalized pricing through Machine Learning (ML) is one of the best ways to convert a prospect to a customer. Identifying the individual needs and predicting the right pricing through the tools and techniques of ML not only triage claims faster according to the risk selection but also identify fraud.

It is the insurance industry, first to implement the facial recognition technology to enhance underwriting process. The application scans the photograph and detect life-threatening habits using gamification techniques and ultimately predict the lifespan of the customer to calculate premiums.

Use Services:

Robotic Process Automation (RPA) fastens the claims processes by automating the data collection steps. There is a significant reduction in average processing time after the automation of document processing and information extraction. RPA saves time, money, and improves customer satisfaction.

A combination of RPA, big data and predictive analytics, effectively reduce the reassignment rate that fastens claim duration through data mining, rules, and database searches.

Retain / Renewal:

Shifting the competitive dynamics rapidly through personalized customer experience delights the customer to continue the services with their preferred insurance company. An automated buying experience with the AI-based chatbot offers a quick response to client queries instantly.

For brands that require higher interaction volumes, Natural Language Processing (NLP) enables computers to interpret human language without manual intervention. It can understand a customer’s context, goals, emotions and behavior when combined with Natural Language Understanding (NLU). NLP emerges to bring the power of open-ended feedback.

The New CX Avenue

Technology provides an opportunity to turn multi-channel enterprises into singular “personas” who understand, remember, and respond to their customers’ requirements in a purposeful way. The ability to drive customer experience with complete satisfaction is the difference between a pioneer and a service provider.

The technological advancements in customer experience will shape the strategy and also help insurers to understand the forces that disrupt the insurance industry. The value drivers generated by technological advances and digitizing is vast. It demonstrates that IT innovation is not just a fad but an essential strategic function.


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