02/24/21

Beating Insurance Competitors to the Digital Punch

By Rob Nocera

Customers want mobility, personalization, and an easy way to accomplish tasks. They’re accustomed to using mobile apps to shop on Amazon, have lunch delivered by GrubHub, and send payments to friends via Venmo. And they expect their health and property and casualty insurance providers to provide these same digital customer experiences.

While insurers view providing useful and compelling digital tools and solutions as critical to customer satisfaction and retention, the success of their digitization initiatives has varied. J.D. Power’s 2020 U.S. Insurance Digital Experience Study reports that a majority of property and casualty insurers with the top 10 market share fell well below the industry average in customer satisfaction.

Accelerating the digitization of the customer experience to improve customer satisfaction is now more important than ever. Covid-19 has left its mark. By necessity, many shut-in consumers have made the jump to online and the limited in-person interactions has hurt the ability of insurance companies to attract and retain customers.

What’s more, the largest consumer population in history – the Millennials – are more likely to purchase insurance through the web than any other generation.

To supercharge customer satisfaction, we recommend that insurers invest heavily in enhancing the digital customer experience. To get started on this journey, make it an imperative to:

  1. Develop Mobile-First Strategies

93% of Millennials own a smartphone, and they spend almost 6 hours a day on their devices. Leveraging the mobile medium to send out push notifications and increase the ease of purchase process (one of the top purchasing factors for Millennials) can drive sales, increase engagement by up to 88%, and raise brand awareness.

  1. Develop a “Digital Identity”

“The line between brand and digital brand is rapidly disappearing as the lion’s share of insurance shopping, and customer support interactions move to digital platforms,” says Michael Ellison, president of Corporate Insight.

Recognizing that 90% of Millennials say the authenticity of a brand message is essential to them, there is an opportunity for insurers to lean in and hone in on the brand image. Building authenticity starts with creating meaningful messaging – according to Nielson, 74% of Millennials in the U.S. “are more likely to buy brands supporting social issues they care about.” In addition, stalwarts in the industry need to identify to their customer base what differentiates them from InsureTech disrupters whose robust digital platforms paired with their Agile data delivery frameworks enable them to “eat into [the] market share of established insurers” during the COVID-19 pandemic.

  1. Unlock Data Stored in Organizational Silos

While large insurers have a vast amount of data, it may be held in different silos or not stored in a way that is digestible for use with digitization efforts. Take the steps necessary to unlock data held in different silos to enable the personalized services and guidance that customers are looking for. Using data to power the digital customer experience will enable insurance carriers to stay competitive and future-proof their businesses.

If your organization needs help boosting customer satisfaction, Capco has several ready-to-deploy solutions to immediately transform your customer’s digital experience. Reach out to us to start a conversation.

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