The recent trends in the insurance industry have placed a greater focus on the adoption and implementation of new emerging technologies. These evolutionary technologies have created excellent developments in the insurance industry.
One of the components that insurers need to provide attention to while implementing technology is Customer Experience (CX).
What is Customer Experience?
In the pre-purchase, consumption, and post-purchase stages, a customer’s experience is a combination of cognitive, affective, sensory, and behavioral responses.
An excellent customer experience is a blessing for the customer and a differentiator from the competition. As a result, customers become loyal. Customers who have a positive customer experience will remember the brand for a long time and will spread the word of mouth.
Let’s take a look at how an insurance company can enhance the customer experience:
1. Understanding business data
Data plays an important role while implementing the customer experience. Insurance companies have been inclined towards transitioning into the hybrid model. While technology transformation insurers need to make sure that the customer experience is created through the data filtration. Data filtrations help to make use of the data with its maximum potential and facilitate informed and effective decision-making. Data filtration includes the collection, sorting, processing, and management of the data.
The insurance industry has to deal with two types of data:
- Internal Data
- External Data
Unfortunately, many insurance companies are still struggling with a proper data management system, which ultimately leads to delayed decision-making.
2. Understand your customers need
A negative customer experience can cause customers to leave. Customer experience is more related to consumer psychology than information technology. It is more about creating a positive connection with the customer. The insurer must know what consumers want and how it can be provided. Many companies have seen that customers do not compare insurance providers when it comes to customer experience. Their decisions are influenced by every digital interaction they had.
3. User before technology
When it comes to implementing new technology, insurers are still using the rip and relace strategy in order to maintain their legacy system. This strategy is effective in the short run but fails to deliver long-term results.
Consumer experience is developing day by day, and technology is becoming a major part of the development. Recently the use of low code/no code is widespread, and yet, the use of AI and ML is growing at a higher rate. As a result, AI and ML are top priorities for insurance companies. Implementing AI and ML should focus more on the user and customer than unnecessary development of the system.
4. Look at legacy as an asset.
Customer experience is a connection between the platform, brand, and user. The experience that customers get while interacting with a business is a bigger part of brand recognition. Legacy data and experience are the foundation that creates trust within the customer. The creation of the customer experience with the connection and feel of the legacy creates a known trust in the customer’s mind. Businesses always get benefits from legacy data.
5. Manual/ Automation
Making the insurance business more progressive is not just about improving performance. It is about the identification of areas that need technical support and those need human interference.
Implementing changes in the business needs and understanding the business complexities. An insurer should consider what process is manual and what is the process that needs technological advancement. Overall, business structure and technological changes affect the customer experience directly or indirectly.
Handling an insurance business and embracing advanced technology is the balancing act between managing policies and claims.
6. Control mistake
Not all business technology is intelligent technology as it will continue working in the way it is instructed. If the task provided to the system are in the wrong order, then it only helping in making mistakes faster which eventually affect the customer experience.
You can’t create a great customer experience without understanding your customers, business complexity, and emerging technology. An insurer can try, but it’s likely to fail. Think of the legacy system as a resource that insurers can draw on for inspiration, but that business should maintain and build upon.