Why Does Digital Completion Matter For the Customer Experience In Insurance?

There are only so many ways insurance providers can differentiate themselves on the basis of product. But improving the customer experience is one of the biggest ways providers can provide more value. But what does a great customer experience in insurance look like? Often, it’s simpler than we’d imagine. More than getting bells and whistles, today’s customers simply want to buy insurance, file insurance claims, and take care of other tasks quickly and easily. By adopting an approach that emphasizes the rapid digital completion of customer-facing, insurers can dramatically improve the overall customer experience.

Why is Insufficient Digital Completion a Problem in Insurance?

When we talk about digital completion, we are referring to the process of automating and streamlining customer journeys with the goal of reaching the finish line, faster. Of course, digital completion looks different from the claims versus the sales side of the business, though the underlying principle is the same. Both insurance sales and claims teams struggle with ensuring their customers reach the end of their journey in a fast and seamless way. Insurance companies struggle to complete sales transactions in large part because they don’t offer the instant, digital experience that customers desire. Customers who wish to purchase policies must wade through legacy channels and siloed processes that ultimately get in the way of agents closing deals. For example, 42% of insurance customers would like information to be communicated to them through their website, yet only 31% of customers actually received relevant information via this channel. In an even more dramatic disparity, 50% of customers would like to communicate with insurance companies through online chat, but only a dismal 22% had the chance to do so. Just 34% of consumers said it was easy for them to communicate with their insurance providers to make modifications to their existing plans. This friction is even more commonplace during the sales and onboarding process, which requires far more information than a modification. Selling to customers through non-preferred channels and putting them through a convoluted application diminishes the likelihood of customers converting at all. And even if they do, it will be at a tremendous time and cost expense for the provider.

Digital Completion in Insurance Claims

Existing insurance customers who attempt to file an insurance claim also face painful bureaucracy that prolongs time to completion. Again, legacy channels and siloes prevent claims from progressing seamlessly and quickly through the system. Customers who are already stressed due to an incident, whether it’s property damage or something else, are being asked to complete critical forms, share images and prove that the incident occured. It is often the first time they have dealt with such a process. This experience is not like any other customer experiences they are typically used to. Ultimately, the road to reimbursement is more complex and bumpier than it needs to be. Everything, from the FNOL to receipt of temporary accommodations, is a headache. A prolonged time to completed claims can diminish the insurance provider’s reputation, lead to financial waste, and put that customer at risk of churn. This is especially true given that customers have more digital options than ever, such as working with digital-first insurtechs. Their loyalty cannot be taken for granted.

What Digitally Complete Insurance Journeys Look Like

Insurance sales and claims journeys that are designed for digital completion are the total opposite of the siloed, outdated processes that plague many providers. Providers often think they are digitally advanced because they have invested in backend automations, such as robotic process automation (RPA). In other cases, insurance companies use standalone tools such as eSignatures and think they are checking the “digitization box.” Yet such a piecemeal approach to digital transformation tools fails to account for consumers’ need for a streamlined, end-to-end journey. In contrast, companies that are truly digitally complete are committed to expediting and simplifying the full customer sales or claims journey — not just parts of it. And their focus is on the aspects of the journey that the customer can see and feel — not just the invisible operational backend. Insurance companies that promote digital completion are:

• Real-time: The insurer shares and collects all documents and forms requiring completion in real-time with customers.
• All in one place: The insurer consolidates all customer-facing tasks into a single interactive experience.
• Automated: Any business user is able to design workflows that automate the full journey and tailor it to each customer, without the need for IT involvement or coding.
• Integrated: Insurers get more out of their existing systems by using APIs that link the frontend tasks with back-office processes.

Digital Completion is Essential For the Customer Experience in Insurance

Insurance companies seeking to differentiate themselves on the basis of customer experience should focus on expediting time to completion of tasks. This means prioritizing FCR (first call resolution), allowing documents and forms to be submitted instantly, and relying on digital workflows that keep the momentum going. The customer experience in insurance is now instinsically tied to customers’ ability to quickly and digitally complete journeys.