There’s no doubt that the insurance sector has come a long way in recent years. Not long ago, hearing from your insurer more than once a year, usually during policy updates, was considered lucky. Unless a claim was needed, insurers were rarely top of mind.
In a highly competitive landscape, many insurers have harnessed technology to streamline processes and enhance the overall customer experience. IBM research reveals that 85% of insurers now implement CX initiatives throughout the customer journey.
For most consumers, their insurer’s smartphone app is the most visible example of this technological shift. These apps allow users to insure items, file claims within seconds, and access emergency assistance when needed. However, the technology driving these improvements extends far beyond smartphone apps.
Better data collection and analysis
Insurance has always relied on data. Assessing the risk of an event and pricing products accordingly are essential for an insurer’s survival. This is why actuaries are prevalent in the sector.
In recent years, the ability to collect, process, and analyze data has evolved, offering even deeper insights. Analytics software enables insurers to assess risk profiles more accurately, providing more personalized coverage options. This means policies are tailored to individual needs, whether it’s for home, travel, or car insurance. This level of customization allows for real-time premium adjustments, such as discounts for safe driving enabled by driver tracking.
2. More efficient billing and payments
Billing and payments, while not immediately apparent, play a vital role in the insurance customer experience. This is particularly true for a product historically considered a grudge purchase.
Today, insurers can leverage familiar payment gateways that people use daily, enhancing the overall customer experience. Features like recurring billing, available at Paystack, have benefited several insurers, improving the overall customer experience.
Aside from convenience, the right payment tech offers other advantages, including flexible payment methods, payment reminders, automated recurring billing, and more.
3. Improved document management
In the past, locating a specific policy or insurance document often involved searching through paperwork at home. Thanks to technological advancements, this process is now much simpler.
Opening any insurance app today usually allows instant access to policies and other essential documents, minimizing the risk of loss or damage.
4. More personalized and frequent communication
Effective communication is integral to a great customer experience. Customer experience is, essentially, the entirety of the customer’s relationship with an organization, and relationships require communication.
Many insurers had limited communication with customers for a long time, which wasn’t ideal. Modern insurers can leverage email, SMS, instant messaging, and in-app messaging to provide updates on policies, renewal reminders, and other crucial information.
5. Faster claim processing
The most stressful part of any insurance claim process is often the wait between filing the claim and receiving a response. Technology has significantly streamlined this process on both the consumer and insurer sides.
Automated claims processing systems expedite reviews and settlements, reducing paperwork and increasing efficiency. Some insurers now boast claim settlements in a matter of minutes.
Improvement through evolution
If you were to ask most people whether their overall insurance experience today is better than it was a few years ago, chances are they’d say yes. When asked about the improvements, many would likely credit their insurer’s apps.
However, most people may not realize how many background processes contribute to this improved customer experience. It’s important to remember that each technological change, on its own, has its limitations. But when combined, they can lead to a significantly improved customer experience.
By Joel Bronkowski, Country Lead, South Africa, Paystack