The Top Three Lessons You Can Learn From Insurers To Better Serve Your Customers

Introduction

The old days of calling an insurance broker or walking into their office are over. According to research from Ernst & Young, “More than 80% of customers are willing to use digital and remote contact channels (including web chat, email, mobile apps, video or phone) in place of interacting with insurers via agents or brokers.” As a result, insurance providers have increasingly been moving toward deploying digital services in an attempt to realize operational gains and improve customer satisfaction.

Most American adults have car and health insurance, thereby creating a vast and competitive market. Therefore, insurance companies are often at the forefront of innovation in meeting and responding to customer demand as a way to stave off competition. Three of the ways in which they do so hold particular relevance for any customer-facing business.

1. Emphasizing The Consumer Experience

By far the most important interactions insurance providers have with their customers occur during moments of crisis. At the most basic level, this means that insurers need to be easily accessible to customers on their preferred channel (web, phone, mobile application). Few things can be more frustrating than experiencing an automobile collision and not being able to quickly contact your insurance provider. As a result, the concept of omnichannel has seen significant uptake within the industry. Liferay global partner Accenture cites AXA Group (a Liferay customer) and Predica as just two examples of large insurers moving in this direction.

Moments of crisis are also the most important for insurers to “get right” from an internal perspective. By failing to be responsive or stay on top of facts during a crisis, insurance providers risk legal and financial fallout. Mistakes are extremely costly and can ultimately lead to the loss of customers. Here, offering a unified, omnichannel experience is key to ensuring that the proper information is collected in one place and that agents are aware of all relevant facts. This does not need to be an all-encompassing overhaul of an insurer’s operations, but even a limited investment in consumer experience pays dividends in goodwill, operational efficiency and an insurer’s own bottom line.

2. Focusing On Rapid Innovation To Create New Products And Capabilities Faster

Disruption is ever present within the insurance industry. Research from Deloitte cites startups like Blueprint Income (formerly Abaris Financial) in deferred income annuities and BIMA in accident and life microinsurance that are challenging established brands within specific niches of the industry. Large providers are focusing on innovation and cultivating internal talent to develop new products and deliver new capabilities faster than ever before.

One innovative trend in recent years has been the deployment of telematics devices by providers like Allstate. By enticing customers to install these devices in their cars with the prospect of lower premiums, Allstate is able to gather valuable data regarding their driving habits and price policies more efficiently. In short, insurance providers understand that if they aren’t at the forefront of innovation, they risk falling prey to disruptors who are better able to appeal to demanding customers.

3. Partnering With Or Acquiring Companies That Give Them A Leading Edge

Many times, making the necessary moves toward improving the customer experience and increasing the pace of internal innovation is simply not going to be possible without seeking external assistance. This can be attributable to the need to keep teams focused on core competencies or the fact that the time to create a new, innovative product internally is simply too long.

While 2017 was already marked by record-breaking mergers and acquisitions activity in the insurance industry, according to Insurance Business, experts expect that 2018 will be highly active as well. Some of these may be attempts to consolidate in a market, but often the acquisitions are designed to build up a specific aspect of an insurer’s internal digital capabilities. Consider Cigna’s acquisition of six-year-old startup Brighter late last year. Following the acquisition, Cigna explicitly stated that Brighter would serve as “the digital health engine for Cigna markets and segments.”

What Can We Learn?

Besides the obvious benefit of making customers happier, a strategy for improving the customer experience often helps improve internal business processes by extension. However, it’s important to understand your limits as an organization. Focus on tangible goals that move you in the right direction rather than on a vague, overarching goal like having an “exemplary customer experience program.” Is there a specific new product or service that would deliver value to your customers? If not, perhaps it’s time to acquire or partner with a smaller vendor that has hit its stride in a certain niche. By focusing on actionable outcomes, your customers gain, and you become more efficient. Everyone’s a winner.

Article originally appeared on Forbes Business Development Council