A look at customer experience in insurance – trends, challenges, and opportunities for improvement

Whether it is a business or an individual, laborious and exhausting insurance processes can make experiences extremely terrible and bitter. However, today’s empowered consumer is looking for a better customer experience, even in this complex world.

Both individuals and small business owners are calling for a different kind of insurance experience. They want convenience and customized solutions that address their specific requirements. They seek prompt resolutions to issues, proactive communication, and flawless digital interactions. The rise of the digital world, the expansion of data and analytics availability, and the growing power of comparison platforms are all contributing factors to this change in expectations.

Current trends in customer experience insurance

Digital services with transparency

Today’s consumer expects decision-making and offers supported by data, so they can trust the system. But why?

Transparency is enhanced by data, which also makes it simple to rely on suggested policies when making crucial decisions like purchasing insurance. Gaining a customer’s trust in a world of digital con artists is now a crucial prerequisite for service delivery. With cybercrimes at an all-time high, it also brings with it the vital component of protecting sensitive data. As a result, providing customers with clarity about what they are getting in a safe and transparent process, fosters trust and improves the customer experience.

Omni-channel experience

The idea of an omni-channel experience is crucial to any business model’s ability to increase market share and customer engagement. Providing uniform services or messaging across multiple touchpoints that customers use to connect with an organization is an essential part of the modern customer journey. A customer wants a seamless experience when interacting with insurance, whether it be over the phone or in person. Nobody has the time to make numerous trips back and forth to verify a range of statements and reissues. The customer experience should be smooth with proper follow-ups integrated into the process. This is a clear gap today. McKinsey reports that one in six customers reports no follow-ups from insurers after the first round of discussion. This can be a real turn-off and can lead to lost business if the communication is not seamless.

Customization and personalization

It is now crucial to offer policies that are tailored to the individuals’ specific requirements. Policyholders are frequently pushed into situations where they are either under or over-insured, and in both situations, the customer suffers the loss. The opportunity to gain complete control over how customers want their policies to be drafted is central to the theme of better customer experiences and solutions. Insurance companies MUST offer a personalized quote based on specific risk assessments. They must then guide the customer to make the best possible choice for their needs.

Challenges and opportunities for improvement

Complexities and legalities

Insurance is among the more tightly regulated sectors out there. A plethora of federal, state, and local rules impact how policies are structured, sold, and procured. Some of that complexity is unavoidable and even more so in situations where regulations keep shifting. That’s why, insurance companies and agencies must equip the staff and customers better. They should be able to understand and explain how policies work in the specific context of each user. Using data-enabled sources to make wise decisions will help both parties, which can enhance the whole experience greatly.

Changing requirements

Diversification of products and solutions is now critical due to rapidly evolving customer requirements. Those changes are driven by changing conditions. For instance, we are not witnessing escalating weather events occurring more frequently and in more places. Consumers who may not have considered insurance for such events will now need that support. It will be up to insurance companies and agencies to stay ahead of the curve to ensure their customers get the best guidance possible to stay covered.

Digital safety

As was previously mentioned, today’s customers are tech-savvy, and as more millennials and Gen Z members join the workforce and purchase homes and vehicles, they expect their insurance needs to be met online as well. Nonetheless, the insurance sector is still working toward complete automation. There is definitely room for improvement in the digital strategies of insurance companies as they aim to create more engaging and meaningful digital experiences for prospective buyers and current customers.

Gonzalez Insurance has been an agency of choice for consumers for years now. We are a customer-focused insurance company and pride ourselves on our ability to listen to what our customers want and suggest only what is appropriate to their needs. Get in touch with us to know more.