2015 brought alarming news for the insurance industry with record-breaking drops in customer experience satisfaction. In an increasingly commoditized market, insurance companies need to fast realize that customer experience is one of the most important ways to achieve competitive differentiation.
J.D. Power 2016 study shows that an overwhelming 74% of shoppers use insurer websites or aggregators for obtaining a quote and researching information, however only 25% actually purchase their policy online.
Digital Leaders Set the Pace for Premium Growth
Insurers that lead in digital shopping channels also lead in premium growth, according to the J.D. Power 2016. Insurance buyers have rated digital and cross-channel engagement as an area in which they seek improvement from insurers. Nearly half (47%) of the survey’s respondents said they want more online interactions with their insurers. In the past six months, half (49%) of P&C consumers purchased a policy online and 41% used a mobile device to make the purchase. Although many consumers are purchasing insurance products online, only 15% said they are satisfied with their insurers’ digital experience. (See how insurance companies can insure their digital future).
According to a Forrester study, more than 30% of customers who endured a bad claims experience switched insurers within a year of the incident. And claims are costly because of increasing inefficiencies and increased customer churn as a result of poor customer experiences. (Learn on What can Insurance CIOs learn from UBER?).
The Circle of Trust between Insurers and Customers
Can your customers enjoy self service capabilities through your portal?
Can customers instantly compare financial products and services?
Do customers have access to preliminary assessment tools online before they make a claim?
Improving customer experiences with self service capabilities can go a long way towards improvements in policyholder retention, identification of cross and up-sell, ability to achieve higher premiums, and also an overwhelming increase in brand loyalty and customer advocacy.
Are you customers’ favourite when it comes to providing digital experiences? Are you inside their circle of trust?