A Guide to Understanding Insurance Customer Experience

Customer experience (CX) focus is one of the top factors which can make or break the proliferation of an insurance product. This is all the more true for markets like India, where the insurance penetration still ranks among the lowest in the world.

The journey to create great customer experiences begins with understanding the customer. Easy enough. But what is often overlooked, is the scope and scale of the touchpoints across which the consistent experience has to be designed.

Without a map, one cannot chalk-out the journey.

This is our attempt to shed light on what we believe (and practice) when it comes to designing effective customer experiences and building lasting relationships with your customers.

What Is Insurance Customer Experience?

Insurance customer experience is how customers feel about their interactions with an insurance company during their entire journey with them.

This journey includes everything from learning about the company, its products, illustrated benefits of the products which are bundled into solutions, ways to manage their policy and filing claims.

We call it “customers’ perception” because CX is based on how customers see and feel about their experiences. This perception is shaped by every part of their journey, including:

• Learning about their needs (financial or non-financial)
• Learning about possible risk mitigation solutions with Insurance
• Comparing among options and buying a policy
• Getting customer service
• Using the company’s website or app
• Managing their policy
• Filing a claim and learning about its status

In other words, insurance CX is more than just customer service. It includes every interaction a customer has with the insurance company.

Why Is Good Insurance Customer Experience Important?

Here’s why having a great insurance customer experience matters:

Customer Retention

A positive experience keeps customers happy and loyal. When customers have a good experience, they are more likely to stay with the company and not switch to a competitor.

To illustrate, nearly 50 percent of customers are likely to switch to a competitor after just one negative experience. And this is especially true in health insurance, where the porting of policies between insurers can be done fairly easily in countries like India.

Word-of-Mouth Referrals

When customers have a good experience, they tell their friends and leave positive online reviews, which helps insurers build social proof to attract new customers.

Brand Reputation

Consistently positive experiences build a brand reputation of trust and credibility. Such a brand is attractive to new customers and business partners. And, a good reputation helps the company stand out in the market.

Operational Efficiency

Efficient interactions save time and reduce costs for the company. For example, if customers can easily file claims online, they don’t need to call customer service for help, which frees up agents for other tasks.

The report from McKinsey, “Digital Disruption in Insurance: Cutting Through The Noise,” indicates that automation could potentially decrease the cost of the claims process for insurers by up to 30%.

Improved Cross-Selling and Up-Selling Opportunities

Satisfied customers are more likely to buy more products or services from the same insurer.

Product Innovation

Feedback from customers helps companies improve existing products and create new ones.

For example, one of the analytics tools tracks the customer behavior at the moment of truth during the policy renewal process. Tracking this interaction securely is a gold-mine for driving customer experience innovation and keeping the offerings competitive.

Furthermore, new customer experience initiatives are being developed by 85 percent of insurers to enhance customer journeys, underlining its significance in insurers’ business strategy.

Himanshu Gupta, Chief Operating Officer, iorta Technology Solutions, says, “Customer experience is the heartbeat of any successful insurance company. In today's competitive market, delivering exceptional CX is not just an option; it's a necessity. At iorta, we recognize that every touchpoint in the customer journey matters, and we strive to help our clients create memorable and positive experiences.”

Understanding Insurance Customer Experience Touchpoints

To understand insurance CX, let’s look at the main touchpoints in a customer’s journey:

Awareness and Consideration

• Realising the Need: Entering a new life-stage, like the start of a career, marriage, new parenthood etc.
• Marketing and Advertising: Seeing ads, emails, and social media posts about the company.
• Website Visits: Browsing the website for information about products and services. According to a survey, 67% of insurance customers think that digital channels fail to deliver clear information on insurance products, highlighting the need for better digital experiences.
• Research and Reviews: Reading reviews and comparing the company with others.

Initial Engagement

Insurance companies use different methods to reach customers based on their location and product types.

Common methods include direct selling (online or offline), individual agents, corporate agents (like NBFCs or banks), brokers, and micro-agents.

Here’s how customers’ initial engagements with insurance companies can vary across these methods:

Inquiries and Quotes:

• Direct Insurers: Customers get quotes and information through online forms or customer service calls.
• Corporate Agents and Brokers: Customers use email, phone, or the agents' websites for quotes and inquiries.
• Bancassurance: Customers can inquire at bank branches or online.

Consultations:

• Direct Insurers: Offer advice via phone, video calls, or in-person meetings.
• Corporate Agents and Brokers: Provide advice through face-to-face meetings or digital channels.
• Bancassurance: Bank staff offer consultations at branches or through appointments.

Application Process:

• Direct Insurers: Offer an easy online application process.
• Corporate Agents and Brokers: Help customers with paper or digital forms.
• Bancassurance: Bank staff assist with applications in the branch or online.

Purchase

• Underwriting: Going through the process of verifying information and possibly undergoing medical exams.
• Policy Issuance: Receiving and reviewing the policy documents.

Post-Purchase and Onboarding

• Customer Service: Getting help via phone, email, or chat.
• Policy Management: Managing policies through the company’s website or app.
• Premium Payments and Billing: Handling payments and billing issues.

Claims

• Claims Filing: Submitting claims through various methods (online, phone, in-person).
• Claims Processing: Working with investigators and tracking claim status.
• Claims Resolution: Receiving claim payments and feedback on the process.

According to an EY report, 87% of customers say that their claims experience affects their decision to stay with an insurance company.

Policy Renewal

• Renewal Notices: Getting reminders about policy renewals.
• Policy Review: Reviewing and updating policy details before renewal.
• Renewal Process: Completing the renewal process and making changes or endorsements, as needed.

Ongoing Engagement

• Communication and Updates: Receiving updates, newsletters, and notifications.
• Feedback and Surveys: Providing feedback through surveys and reviews.
• Community and Events: Participating in insurer-organised events and webinars.

Support

• Technical Support: Getting help with technical issues related to online services or apps.
• Assistance with Changes: Making changes to policies, beneficiaries, and personal information.
• Complaints and Resolutions: Filing complaints and getting resolutions for issues.

In conclusion, to create a great insurance customer experience, you need to understand every touchpoint from marketing to claims and renewals. Improving these interactions helps build a positive customer experience, which can lead to greater success for the company.

Insurance companies should regularly review their CX strategies and invest in tools and practices that improve customer interactions.

By focusing on CX, insurance companies can enhance their services, reduce costs, and create stronger relationships with their customers.

If you'd like to discuss insurance customer experience and how we help our enterprise clients transform digitally, please reach out to Easwar Murthy , Chief Executive Officer (CEO), iorta.

Stay connected with us:

• Visit our website: https://www.iorta.in/
• Follow our APAC Business Unit on LinkedIn: https://www.dhirubhai.net/company/iorta-technxt/
• Discover more about our APAC Business Unit: https://iortatechnxt.com/