Investing in User Experience in Insurance is a Sure Thing

A study conducted by SaleCycle demonstrates that the insurance industry has the highest cart abandonment rate of any sector at 84%. This translates to at least eight in every 10 customers fail to convert. Therefore, the standard of user experience in insurance as a whole today just isn’t up to scratch.

It’s a known fact that when a company invests in the experience it provides its customers, the company will grow faster and become more profitable than those in the market that simply fail to do anything about it. That’s why you should see spend on improving the customer experience as a solid investment that is sure to deliver a good return.

But why is this rate so high? Why is it that the insurance industry is missing the mark when it comes to satisfying customers through the experience they provide? By laying out the evidence to back this up and using examples of companies that do customer experience well, we aim to uncover the answers to these burning questions and ultimately show you how to steer clear of failed tactics and begin to improve your conversion rates without having to do too much heavy lifting.

A report by CGI Group found that customers under the age of 30 expect to be able to use their mobile devices for all commercial and personal interactions and consider letters and brick-and-mortar stores to be something from the analogue age. With this in mind, it is absolutely crucial that insurance providers up their game and provide optimised digital solutions for customer experience if they are to remain relevant and engaged with this demographic.

Another factor to note is that disruptors from outside the industry are experimenting with entering the insurance realm. For example, Amazon has recently begun talks to build an insurance comparison site. The risk here is that Amazon is exceptionally well-versed in the digital field and so will increase the expectation of other insurance companies by those who are familiar with and frequently engage with the Amazon platform.

Not only will insurance companies be up against existing competitors even more so to win the custom, but will also have to compete with partners of the Amazon site too. As the customer experience changes through the implementation of digital disruption, expectations are set to keep rising and you must be involved as early as possible and be willing to evolve with the times in order to avoid being cast aside.

Insurance Business UK talks about these changes and increased pressure on the insurance industry to provide improved digital customer experiences as a ‘profitability revolution’. What they mean by this term is that a lot is changing with the uprise in technology, security threats, low-interest rates, regulations and operating ratios. There’s lots to juggle in the insurance sector right now, and keeping your customers happy through an easy-to-use, comprehensive service is a great place to start to ensure you stay on top.

With just 15% of customers being satisfied with their insurer’s digital experience, how can you improve the customer experience you provide through technological innovation?

Automation

Customers claiming is often where insurers lose revenue. But you can use technology to combat this and in fact, turn it around so that claims begin to increase your revenue. Automotive insurers who provide consistent, best-in-class experiences generate around 2-4 times more growth and see 30% higher profitability (Forbes). The less time it takes to file a claim and the fewer man-hours spent on processing the claim, the more money you will save.

In the current digital age, customers are becoming less patient and want everything instantaneously at the click of a button. That’s why a report by McKinsey demonstrates that automation in the claims process can reduce costs by as much as 30%.

By implementing an application whereby customers are quickly provided with all of the information your company needs to process their claim, and they can submit it without having to speak to a member of your team, you are closing a gap and allowing customers to take control. Being there for the day or night makes you more reliable than those who cannot provide this service.

Speed

Customers expect access to any service they require around the clock, and they want it to be simple to use and to tell them everything they need to know quickly. By making this possible it provides your insurance company with the opportunity to improve profits and score higher on customer satisfaction.

“The companies that move swiftly and decisively are likely to be those that flourish. Those that do not will find it increasingly challenging to generate attractive returns.” – McKinsey.

As an insurer you must stay ahead of the curve, acting on any new trends and leading the way by creating your own.

Research what your customer needs from an insurer and then aim to provide this quicker than any of your competitors can. Really think about how you can make dealing with your company a quicker process. Not only will this provide increased customer satisfaction through improved experience, but it will also save you man-hours and money too.

Efficiency

An efficient experience when dealing with your company will encourage customer loyalty retention. Gain a good understanding of what your customer wants and build this into every element of your customer experience.

By transforming the way a customer can engage with your company for the better, you are able to establish yourself as a reliable and efficient provider. So how can you streamline your service to ensure that customers can get what they want from you with ease?

In the initial stages, you should map out the customer journey, looking for anything that works well and anything that might become a barrier. Prioritise the barriers and look at ways to eradicate them through creative design.

Whether you choose to transform the digital experience through an online service or a mobile application, you need to ensure that you are providing a tan gible service by allowing customers to self-service, view their policies, amend their details, secure add-ons and notify you of cancellations in a straightforward process that takes away the need for them to call you.

Lower call volumes can also save you time and money by enabling your team to focus on processing customer queries and claims, which comes full circle by leaving your customers more satisfied with the speedy, efficient experience you are now able to provide.

So, who are the big players doing user experience design right?

Geico

Geico has implemented an app that displays the most valuable data instantly. Customers are able to request emergency roadside assistance, view and manage their policy, pay and manage their bills and even view and save ID cards. Not only does the Geico app provide customers with all of this crucial information, but it also gives added-value features for drivers such as the parking locator and gas finder.

Customers can report and also track their claims through the app, as well as get virtual assistance from ‘Kate’. Kate is programmed to answer general questions regarding Geico insurance, as well as provide specific information about a customer’s account. The virtual assistant can check payment due dates, balances, find documents and is available 24 hours a day, every day.

Liberty Mutual

Again, Liberty Mutual’s mobile app allows customers to easily and instantly call for emergency roadside assistance, report and track their claim as well as allowing them to upload any pictures of the damage. Customers can use the app to search for trusted auto repair shops, schedule a vehicle inspection or request a rental vehicle.

The app also provides repair estimates and the capability of tracking ongoing vehicle repairs and payment statuses. It takes just one day for a customer to receive a repair estimate through the Express Estimate service. The app allows customers to fully engage with the service, any time of day and from anywhere.

The Liberty Mutual app has also now integrated with an Amazon Alexa feature, whereby customers can call on Alexa to get an insurance quote, learn more about their insurance policy and get definitions of important terms in their policy without lifting a finger. Customers can be instantly connected to an insurance agent through this service too. The rapid increase in the use of AI makes it likely that Alexa is a device that a lot of customers are already familiar with, making their use of digital technology more streamlined and accessible.

State Farm

The State Farm mobile app allows customers to request roadside assistance instantly, file a claim and track its status 24 hours a day and even take care of their banking and bills. Customers can quickly access their account balance and transaction history, deposit checks and transfer funds between their accounts too.

State Farm also offers another layer of service to the app, Drive Safe and Save. Customers can apply to have a telematics device fitted to their vehicle to track their driving patterns. This offers an opportunity for customers to save money as they are rewarded for good driving behaviour. Safer drivers are given discounted premiums and the Driver Feedback app provides tips on how to improve and be more fuel-efficient.

This is a truly customer-centric approach to insurance with lots of added value. By demonstrating that they are a company that cares about the safety of their customers enables State Farm to achieve greater customer satisfaction by making them feel valued.

Betting on user experience in insurance is a sure thing because the entire service is completely customer-centric. When it comes down to it, you have to prove why the customer should choose to look after some of the assets and elements in their life that are incredibly valuable to them.

Showing that you are a competent and trustworthy firm by implementing efficient customer experience strategies to truly solve problems and put your customers at ease is sure to put you ahead of your competitors when an individual is choosing who to take out a policy with.