Here is what the best insurers in the market have in common
07 June 2022 · By Irene Martínez
As the insurance industry evolves, more and more new players are coming to the market powered by cutting-edge technology. This is ultimately a good thing for the industry, which has long needed modernizing. But the increased options available to customers can make it difficult for them to choose the right insurer for their needs.
To compete in this crowded market, insurers need to focus heavily on what customers really want. Let's look at what the best insurers have in common and how they stay at the top of customers' lists.
What do policyholders want?
As technology continues to revolutionize the insurance sector, insurers need to rethink their strategies for customer satisfaction. If every business has access to the same technology, they need to do something special to help them stand out from the crowd. By focusing on what policyholders actually want, insurers can build better relationships with their policyholders while increasing conversion, retention, and customer satisfaction.
A major pain point for potential customers is just how complicated it can be to take out an insurance policy. The modern customer is used to fully digital experiences that allow them to quickly and easily buy groceries or watch the latest movies. Despite this, insurers have been incredibly slow in adopting simple, digitally-powered sign-ups.
Right now, the best insurers on the market have all said no to the traditional sign-up process. Instead, they offer simple sign-ups through their websites and use artificial intelligence to speed up the sign-up process. No more waiting for a representative to call you, no more awkward, confusing phone calls, just a clear, straightforward digital experience.
Then we have to look at the claims process. Traditional methods of logging a new claim are tedious that can take days or even weeks to complete. With so many other businesses offering easy-to-use web and mobile applications, it’s hardly a shock that insurance customers are unhappy with the traditional ways.
Insurers that incorporate AI and VI (like Bdeo) into their processes can offer their policyholders a more streamlined digital claims process that can be started — and in some cases settled — within minutes.
For a long time, insurers were determined to include as many features in their packages as possible. The idea was to offer as much as possible to the customer to increase the value they feel from their new plan. In reality, insurers found that many of the extra features went unused while policyholders were trying to give them up to save money on their policy.
These days, we see many of the newer players offering customizable plans. This allows the policyholder to control their policy and finances by selecting and paying only for what they use.
The more flexibility you can offer, the happier your policyholders will be. The best insurers on the market today allow their policyholders to customize almost every aspect of their plan, from choosing what they want to be covered to how long they’re covered.
According to McKinsey, five technology trends are poised to revolutionize the insurance sector: applied AI, distributed infrastructure, future of connectivity, next-level automation, and trust architecture. These technologies are a big reason we’re seeing so many new players in the insurance market, as the big, established companies continue to avoid new technology.
Customers in every industry are looking for convenience and simplicity. Tech can provide them with just that. Insurance companies need to keep up with the latest and greatest insure-tech offerings to keep customers interested.
The Bdeo blog offers businesses a way to keep on top of the newest trends and developments in the insurance world.
Tech doesn’t just help businesses make customers happier. It can have significant benefits for the insurer as well. Some insurers are already feeling the benefits that IoT, Blockchain, and artificial and visual intelligence can bring, such as:
Decreased claims processing time
Improved customer experience
Increased trust between policyholder and insurer
Increased conversation rate
Tech can also help you track analytics and see what your customers actually use and need, letting you create more individualized offerings. A report from Accenture found that 64% of UK insurance consumers would be willing to share personal data for improved insurance offerings.
One of the most significant battles we have as insurers is rebuilding the trust between policyholders and insurers. Years of slow, unreliable processes have painted the insurance sector in a bad light, leading to some choosing to avoid taking out insurance altogether.
It should come as no surprise that policyholders are looking for the peace of mind that their insurer will be there for them when they need it. Having to open a claim for anything is a stressful moment in a policyholder’s life, so they need to know they can rely on you. This requires the human touch — with a focus on providing the best experience possible — augmented by powerful technologies like AI.
With AI, insurers can give that feeling of human interaction even when there’s no human available. AI-powered chatbots enable fast, high-quality, personalized service without the need for expensive contact centers or human intervention. With the speed of service and individual approach being critical factors for customer support, implementing AI can set you on the right track to rebuilding consumer trust and confidence.
Embracing technology can also help insurers remove human error, which can cause problems for both the policyholder and insurer. Something as simple as ticking the wrong box on a form can leave policyholders vulnerable and in a challenging position.
Imagine trying to claim for something you thought fell under your policy but isn’t actually covered due to a clerical error. Not a good way to retain customers! Using AI during the onboarding process can help eliminate this risk.
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