How Is the Insurance Industry Meeting the Demands of Ever-Changing Customer Behaviors
by Abdul Aziz Mondal Insurance Published on: 24 May 2022 Last Updated on: 07 November 2024
The fast development of new technologies is among the most significant factors behind the changes in customer behavior.
Keeping up with these changes becomes difficult for the insurance industry as expectations for insurance are also affected by the consumers’ experience buying other things such as groceries online.
Knowing this, an insurance company CEO once said that their company focuses on observing the changes in customer expectations and behavior and adapts to those shifts to seize the opportunity.
Listed below are ways on how the insurance industry is meeting the changing consumer demands due to shifts in customer behaviors.
1. Integrating technology
Insurance companies are lagging behind other industries when it comes to incorporating good technology practices and systems.
While it’s true that the insurance industry doesn’t have to be entirely altered by technology, it should have the right tools to enhance its service.
The decision-makers must analyze how their consumers transact and determine their customer’s needs instead of focusing on customer acquisition and price to drive renewals. A consumer who prefers convenience will constantly be seeking something more.
The expectations of modern consumers are not limited to good quality products and competitive prices. Today, most people are busy, having more work and less time for other things. For this reason, customers are more interested in companies that offer convenient and quick services. Insurance software is the most effective way to improve convenience as it allows fast service and excellent performance.
The following services are expected by customers and insurers – the ability to find relevant information quickly (specifically those related to premiums and policy details), 24-hour access in every channel, and innovative services suitable to the digital age.
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2. Increasing the use of AI
Improved productivity also provides more time for insurers to build the personal connections they are opting for.
According to a report by IBM Institute, using AI across the insurance customer experience may considerably improve customer retention and satisfaction. Insurance companies will have increased accuracy, speed, and efficiency with AI-based tools and deep industry expertise.
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3. Establish intelligent workflows for policyholder and agent
Aside from integrating technology, insurers also need to redesign their processes and systems to establish intelligent workflows that will go along with AI, automation, and more.
When functions are integrated across organizational boundaries, it will empower employees to let insurers feel known, provide instant claim payouts or policy refunds, and provide better service.
Additionally, integrating and automating tasks can lead to converting innovative ideas into business value. An example of this is touchless claims processing. This innovation requires limited to no interference from the policyholder and agent.
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Final thoughts
To conclude, the insurance industry’s customer service is at its turning point. Those companies who will seize this opportunity and embrace necessary changes will be able to keep growing.
The insurance industry is ready for change and offers a spectrum of opportunities ready to be grasped.
The only thing to do is incorporate the necessary technologies to provide a personalized customer experience and simplify insurance transactions.
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