The “now” generation expects much from Insurance today: comprehensive choices, efficiency, flexibility, and speed of delivery. The global obsession with the digital world means that customer experience in insurance is no longer judged in a vacuum – against other insurance providers, but rather against other digital service providers. And, accordingly, to compete, insurance companies must focus on delivering CX in more intuitive and innovative ways
« Quick Summary »This article covers key considerations for customer experience (CX) and how it relates to Insurance
- Why CX is so important to the insurance industry right now.
- The role of key CX ingredients of digitization and automation have on claims processing.
- 9 CX Interventions your Insurance business can implement today.
Insurance businesses have traditionally had limited direct customer interactions. They might have been limited to an occasional ad mailer or renewal notice, with a couple of emails dropped in. Today, this fails even the most basic customer experience. In today's digital environment, insurance players must harness new CX standards to find ways to effectively meet consumer expectations – especially during the underwriting and claims process.
Why Customer Experience in Insurance is Important
In the insurance industry—even when claims are settled satisfactorily—41% of customers are still very likely to switch
insurance companies in the following 12 months, according to Accenture research.
81% of companies expect CX to be the key battleground
in the race for market dominance. Meanwhile, a McKinsey study shows that a whopping 70% of consumers base their opinion of a business on the quality of its CX
. Customer experience is important across product and service categories, and even more so when providers are selling intangible benefits- like in the insurance industry.
With the advent of automation and digitized technology, the claims process can be completely reinvented. Claims processes can be digitized, accelerated, and automated. While insurance companies have started to address many of their core systems, claims processing is the most difficult, and important process to reimagine. You may have already automated premium payments, quote generation, and policy renewals. But have you considered digitizing the entire claims process? Digitization and automation effectively shift the focus from antiquated, manual processes to consumer-focused, digital processes.
McKinsey estimates that P & C and life insurance companies derive about 30-40 % of their business cost from the top 20-30 core end-to-end processes. Many of those core end-to-end processes live in the claims arena and are notoriously slow in digitizing, let alone accelerating. While digitizing claims processes provides basic savings, a Deloitte study on life insurance underwriting suggests that prospects are 20% more likely to purchase a life insurance policy as the application and underwriting process gets closer to real-time
. The value of applying that process automation and acceleration to claims processing is the biggest CX opportunity for insurance companies.
So, what does the ideal CX claims processing look like?
- Instant, integrated processes enable claimants to complete claims on the first try (first call resolution). Insurers use simplified mobile-friendly claim forms and allow customers to attach supporting evidence with selfie-style pictures of damages. The mobile approach means that claimants can complete claim submissions on the spot in natural disasters or on the road. These solutions can be completed from any phone, anywhere – without downloading a clumsy dedicated application. Thanks to client-friendly workflows, claim processing can move swiftly between the claimant, agent, and assessors toward adjudication and payment. Removing manual overheads and digital document processing ensures documents are complete and correct – removing rework and operating costs and optimizing the customer journey. More than 5 days are saved on claim payouts alone.
Unfortunately, insurance companies lag behind other industries when it comes to digital transformation, making it sorely lacking
when it comes to good CX. Even though the battle for market domination in the insurance industry continues, it is clear that CX will be the key component of differentiation. And that will depend on digitizing—something that insurance companies have been reluctant to complete.
Digitizing claims processes provide basic savings, plus prospects are 20% more likely to make life insurance decisions when the underwriting and application process is closer in real time. Applying process acceleration—digitization—to claims processing is the biggest CX opportunity available to insurance companies.
The Impact of CX on Customers and Insurance Companies
Claims processes that are digitized, automated and accelerated have clear benefits for insurers and insurance businesses. Insurers can file their claims, check the status of their claims, manage their policies, and make decisions about their file easily. They enhance the decision-making process and productivity of the insurer and insurance company. They can log on at a time of their choosing to receive personalized information and increase/decrease coverage as needed.
The insurance industry can ensure that claims are accurately and completely filled. They are automatically sent to assessors. Carry-on workflows can be triggered without manual intervention, and payment cycles can be expedited. Reducing the heavy costs associated with manual workflows and slow payments is a clear win for today's insurance businesses.
Those insurance customer experience dreams may sound lofty, but many CX wins are close at hand for the insurance industry. Here is a list of 9 Insurance CX interventions your business can capitalize on today.
9 Insurance Customer Experience Interventions
#1 Move from Paper to Digital Documentation
Digital workflows and collaboration channels, including reviewing quotes, document completion, and eSignatures slash the transaction costs of all types of policies, especially P & C. Our customers estimate that Lightico's eSignatures alone save $15 dollars per transaction in paper costs, faxing/scanning/emailing time alone – not including agent calling time.
#2 Move to eForms to Shorten Sales Cycles & Improve Closure Rates
Purchasing insurance is a big deal, especially for customers who don't see risk as an important element in their life. Therefore, customers are most inclined to purchase a policy when an agent is speaking with them to review the risk factors covered and the benefits of a policy. That makes it critical to complete documentation and signatures while you are speaking with a customer. Agents estimate that the likelihood of closing customers halves every few days. This underscores the importance of binding policies while you are speaking with clients.
#3 Eliminate Time-consuming, Frustrating Errors with eForms
Eliminate errors and frustrating rework associated with sloppy paperwork. Use preconfigured smart eForms and guided eSignatures to eliminate errors like missing data and signatures. It is important to have the customer review information and input their own details as if they are on a website, without the clutter of PDFs and irrelevant information.
During the claims process, a policyholder is anxious to get paid as soon as they can, and Insurance companies want to reduce the time it takes to pay claims and limit ALE. By having an agent talk through the process and allow the claimant to accurately fill out paperwork, take photos, verify ID, and submit payment details.
#4 Reduce Customer Rework, Legal & Compliance Issues with eSignatures
Audited, court-admissible, documented client interactions surpass ESIGN regulation and enable insurance professionals to execute binding policies with unparalleled simplicity: customers can sign policies from their mobile phones with a swipe of the finger.
#5 Increase Customer Satisfaction by Completing Processes in RealTime
Take advantage of the agent-customer time by guiding the customer through the required paperwork. Use in-call tools that allow for eSignatures and documentation to simplify the work with insurance professionals. Customers are demanding this simplicity and ability to transact from their mobile phones. By providing solutions that exceed customer expectations, agents see improved retention and referrals.
#6 Go Digital to Speedup Binding Cycles/Time To Commission Payout
Help customers instantly complete and submit their forms to expedite forward processes. This speeding of processes shortens the time until agents receive their commissions, a paid agent is a happy agent!
#7 Improved CX is a win for Business Productivity Too
By using a digital collaboration toolset, including built-in automation and workflows, agents can spend more time with customers and less time managing back-office paperwork, almost eliminating after-call work. With customizable eforms, instant eSignatures, and simple payment solutions, agents can create and sign customers on policies without callbacks, scans, or emails. This offers a personalized experience with claims in real-time
#8 Eliminate Misunderstanding Risk & Frustration: Ensure Customer Get Coverage they Want
The insurance industry is highly regulated, and any missteps can be costly. Using ESIGN-approved technologies, agents create flows that can eliminate any further disputes that they “weren't shown that disclosure” or “opt-out of that coverage.” Also, agents can use a collaboration portal to display and have the caller review any important documentation, like terms and conditions. The portal then records a tamper-proof, audited trail that documents exactly where and when customers opt into coverage terms.
#9 Offer Unparalleled Convenience
Onboard clients who can't get into your office. Manage to onboard remotely and ensure that you use facetime to build relationships. Speed & simplify documentation that customers can approve remotely leads to higher efficiency, lower not-take rates, and greater customer loyalty.
According to the New Horizons report
, insurance companies lag behind other industries in the realm of digital transformation. While 42% of respondents maintain that complex regulatory requirements are the biggest barrier to digitization and automation in their companies.
The objective of any great customer experience is to remove friction—any process that slows or inhibits the intended action—and that quality is vital in the insurance industry. Filing a claim is difficult for a customer due to the loss experienced, and savvy businesses are always on the lookout to make that process as easy as possible.
Any process or attribute that an insurance company can bring to the table to make insurance situations easier to navigate will raise the positive perception of that company in the eyes of the customer. Digitization and mobile device-ready solutions are critical in establishing fluid—and frictionless—experiences for customers, particularly in the last mile of the customer journey with an insurance brand – filing claims.
What Lightico Can Do for You
At Lightico, we boldly leverage digitization and intelligent automation technology to help our customers increase revenues and reduce costs. Today, new digital insurance offerings are eating away at the market share of traditional insurers. So, there has never been a better time to invest in advanced technologies for the insurance industry's future.
Lightico is an expert at delivering on the digitization and CX promise for insurance businesses. We are ISO 27001 certified and are in compliance with all insurance industry regulatory requirements. Our platform is secure, interactive, efficient, and convenient. So, each process and associated task can be completed on a customer's first contact from any channel and any location.
We improve FCR (first call resolution) & NPS
and utilize a mobile solution to deliver meaningful CX to your customers. Ready to see what Lightico can do for your Insurance business? Request a Demo