How to Use Customer Experience in Insurance the Right Way

Creating a great customer experience in insurance can appear intimidating, but much of it comes down to expediting the customer journey. With most providers, when a customer files a claim, it is usually followed up with extensive amounts of paperwork and many phone calls. For instance, when one gets into a car accident, it is usually a long process. The customer will have to relive the traumatic experience until it is resolved by multiple phone calls, emails, and various paperwork, which can sometimes take months. To make the notoriously long and slow process efficient for the customer is making it convenient, as the key to great customer experience (CX) is convenience. Here we’ll discuss how to use customer experience (CX) in insurance the right way.

How has technology affected the CX?

The development of technology has enabled consumers to do everything from their smartphones, whether it’s booking a flight or ordering their weekly food shop. This has led to consumers wanting everything done instantly and from one device. Industries, such as banking and healthcare, have made these changes already to digitize their workflow, giving customers instant access to any document. This means that the business’ software is compliant with all applications on any smartphone or computer. Hence, making these simple alterations makes it easier for the customer to navigate the platform, resulting in customers being more likely to use the service.

Why should insurance firms digitalize the workflow?

82% of consumers believe that a hyper-connected workplace will benefit all stakeholders. Automating the businesses’ workflow means that evidence collection can be simplified. Storing all the information in one application for both the customer and insurer to view means that adjustments can be made quickly. Traditionally, employees would have to look through paperwork, organize a meeting with the client, and wait until that meeting to make adjustments. This is not time or cost efficient for both the customer and business. With these stages being prolonged, it means that organizations can lose policy sales. As nowadays, any change can be made with a few simple clicks on any device. Some businesses might see digitalizing the workflow as a threat; however, this is an opportunity to get to faster digital completion. According to Accenture, 41% of customers are very likely to leave an insurance company within 12 months. A smart workflow can be agent-guided, meaning it will assist the customer when they need to fill out complex documentation. Human error is one of the most prominent issues when it comes to filling out forms. Both the customers and employees can be held accountable for these errors. Filling out documentation can be exhausting, especially in the insurance sector, as this requires a large amount of paperwork. When modifying an insurance plan, means that the client has to meet with the broker and might have to discuss uncomfortable issues, such as healthcare or disaster. However when a smart workflow is put in place, this enables customers to add all the private information digitally, making the customer experience more comfortable. Customers can sign and renew policies, in real-time which has transformed CX, as customers can do this from any device, anywhere. An automated workflow also cuts down the cost of paperwork, saving all stakeholders time and money. With climate change being a significant part of a business's operations, cutting out paperwork can make the business compliant with government guidelines. As well as digitalizing the workflow can make the organization appealing to customers signing with an insurer, as these factors boost efficiency, digitalizing the workflow ensures that all ID verifications, eForms and eSignatures are stored in a cloud, which is tamperproof, giving the customer confidence in the business. When businesses have incorporated automation into the workflows, it has reduced touchpoints per policy by 60%. By digitizing policy signups, can reduce the cost and time for making a claim by as much as 30%. This statistic was announced in 2017 by McKinsey, and since then, this figure would have increased organically given recent events. Due to the pandemic, businesses have had little option but to move digitally. Therefore documentation and signatures now have the rights as physical documents, making these changes effortless for all stakeholders. Insurance companies are now accelerating the work process and delivering better CX by removing the legal risks of not being compliant. As a result, insurance companies have seen a 15% customer satisfaction increase, since introducing an automated workflow.

Conclusion

Offering a full-service mobile service allows the customer to complete documentation at their nearest convenience. A smart workflow using eSignatures and eForms gives the company time to build a relationship with the customer. This is more important to businesses, who want to build long-term clients, as this ensures stability in the organization. Insurance can be seen as tedious, though exceeding the customer’s expectations by building a platform, where customers can sign up, renew and make changes to policies will drive more clients. As data will be kept securely in the digital cloud, this will give customers confidence, as the digital workflow makes the process fast and efficient. Insurance companies and customers who do not have the up to date digital technology and applications could find the process of dealing with this process unnecessarily complicated and time-consuming. Transforming the process will accelerate sales and renewals, cut unnecessary costs (paperwork) and boost conversion rates. To learn more about Lightico's eSignature, eForms, and document collection solutions, visit lightico.com.