The customer is always right! This fact was, is, and shall always remain true, irrespective of the industry type. When it comes to the insurance business, every insurer must understand the specific needs of every customer and try to offer customized solutions to them. The simple reason being today, customers stay loyal to a brand until they are receiving the best services, products, and experiences form that brand.
Falling short on any of these metrics shifts the focus of your customers to other competitive insurance brands. It was not long ago when insurance customers were happy with the basic policy services offered to them. Today, their expectations have manifolded as they need enhanced service in almost every aspect of the insurance process like quick claims settlement, 24/7 customer support, technology usage for convenience, and more.
Top Insurance Customer Behavior Stats
- According to the Accenture Strategy Report, $470 billion accounts for customer churn amount against the Life and Property & Casualty premiums worldwide owing to poor customer experience and declining loyalty.
- Another study by Accenture Strategy Report revealed only 29% of insurance customers do not want to change their current providers and are satisfied with them.
- Propertycasualty360 reports that only 15% of insurance customers are satisfied with the digital experience provided to them by their insurers.
- Forrester explains 30% of customers switched insurance providers due to a terrible claims experience.
- McKinsey states that 80% of customers who are satisfied with their insurance providers are likely to renew their policies.
- As per the Insurance Journal report, 23% of customers prefer buying insurance products from online service providers.
- Accenture reports 52% of customers to prefer online complaints, 81% prefer supervising their investments online, and 28% prefer online booking appointments for a financial advisor.
With the passing of time, customer trends change, and so do the solutions to tackle them. So, let’s get started and figure out the latest insurance customer trends of 2019 and the solutions which insurers need to provide to their customers.
Top 5 2019 Changing Customer Trends with Possible Solutions
Insurance Premiums’ Personalization
In the insurance industry, a new customer trend of high personalization in premiums’ level is keeping the insurers at their toes. Customers are exposed to almost every insurance product, and it gets very confusing for them to choose the right one amongst them, adding to their irritability. This is the reason customers expect personalization in one way or the other, like recommendations, offers, or even a message!
A solid data of customers’ behaviors and patterns is needed, and this is only possible by incorporating the use of the latest technologies like machine learning. So, insurers need to invest in these technologies to provide their customers with personalized offers and product.
In not just the insurance sector but almost every sector, price clarity has been the issue for customers for decades. Today, people want to know about every single dollar which is going out of their pocket and what exactly they are getting in return for it. Insurance customers are always complaining about the extra premium amount due to the hidden policy prices.
Today’s customers have access to the entire information related to their policies over the Internet, along with price comparisons with other brands. So, they want complete clarity of price, and if the insurers want to retain and acquire new customers, they would have to leave the complicated policy approach to an easy-to-understand approach, with clear-cut policy pricing.
Self-Service Claims Settlement
Processing and getting claims settled is the biggest challenge which the insurance customers face. Customers hate to wait and with manual processing and handling, waiting and frustrations for the customers simply manifold. Today, customers want to get rid of all these irritations and settle claims at the earliest.
This is where automation steps in, which enables customers to share images and videos as a part of the First Notice of Loss (FNOL) with the insurers. As soon as the pictures and videos get shared, claims processing starts and with the help of artificial intelligence and machine learning, claim genuineness is established easily, eventually leading to a quick automatic compensation amount and making the customers happy.
Service is what defines a business in the present times as it is the quality service which the customers are seeking in their service provider. The insurance customers have a plethora of doubts in mind when it comes to claims, making changes to their policies, or buying a new policy. Insurers need to be available 24/7 for their customers who may have a query at any time of the day.
The only way to deal with such a high availability demand is by using technological solutions in the form of live video, chatbots, and more. If you can provide them with such exceptional customer service, you will be able to retain them for sure.
This is something which the insurance customers have been waiting for since ages. Today, customers are more informed and educated than ever before and want their insurance providers to be as loyal and transparent with them as possible. If the insurance providers can provide loyalty, along with the above-mentioned services, holding onto existing customers and acquiring new ones will not be a big deal.
Every trend changes with time and the insurance customer trends are no exception. Today, customers have become technically more advanced with the use of Smartphones and ease of accessibility to the Internet. They have access to the entire information at their fingertips. Such customers want fast and quality services and solutions in terms of claims settlement or any other insurance-related query.
Adopting the digital approach is the need of the hour, and if the insurance service providers lack behind, they are going to lose out on their existing and potential customers. In case, the insurers lack the expertise for bringing in the use of technology to their processes; they can opt for insurance outsourcing services and get the right team to work with them and streamline their business processes technically.
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