The Difficulties in Insurance Customer Experience

insurance customer experience difficulties

Most people within the industry know there are insurance customer experience difficulties. Change is happening, with digital technologies and new ways of communicating at the forefront of the insurance customer experience. What matters now is making sure customers remain happy, which means avoiding as many challenges and pitfalls as possible.

There was a time, not too long ago, where customers and insurers alike had to deal with paperwork. Lots and lots of paperwork. Creating policies involved stacks of paperwork, as did filling out claims forms and overall communication with the customer.

Now, most insurance customer experience difficulties can be handled swiftly and easily using digital technologies. New technologies mean less paperwork and more time improving the overall insurance customer experience.

High Customer Expectations

insurance customer experience difficultiesEvery day, new technologies are unveiled that give us options we never thought possible. Cell phones, wearables (such as smart watches), smart cars, smart homes, you name it.

New technologies can help with insurance customer experience, as customers will want more from your company. Unfortunately, many in the insurance industry are falling behind when it comes to digital technologies. As far as insurance customer experience difficulties go, this is a big one.

The J.D. Power 2018 Insurance Digital Experience Study found even the leading insurance companies are dramatically behind digital leaders Amazon, Starbucks, and Uber, among others, in meeting customers’ expectations for a streamlined digital experience.1

To combat these insurance customer experience difficulties, companies need to focus on how they communicate with their customers. What preferences do your customers have when it comes to communicating? Can you provide a great insurance customer experience based on what you know about your customers?

Understanding the Customer Better

LexisNexis Risk Solutions found that in the home insurance market, for example, 25 percent of insurance providers are still using mostly manual processes, as opposed to a mix of manual and digital or all digital.2

Having a better understanding of how your customers prefer to communicate is essential to combating insurance customer experience difficulties. An omnichannel or multichannel approach gives your company the ability to provide customers with multiple communication avenues.

At some point this year, Millennials will overtake Baby Boomers as the largest generation. This could cause serious insurance customer experience difficulties if you’re not prepared. Most Boomers prefer hard copies of correspondences and talking to an actual person. Most Millennials, on the other hand, prefer a more digital approach.

Millennials want mobile apps so they can take a more DIY approach. For communications, Millennials more often would rather speak to someone via chat, or SMS/text messaging.

One of the other insurance customer experience difficulties is communicating with your customers in a way they prefer, whether it’s in a different language or different tone.

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