Customer Service Trends for the Insurance Industry
We live in an increasingly digital era, in which companies’ online presence and the provision of customized solutions are an increasingly valued factors by consumers. In the insurance industry, this customization, as well as the impact of emerging consumption habits, such as car sharing and a predictable rise in car insurance premiums, represent some of the major challenges we face today. How can this industry address these challenges? Where does customer service enter the equation?
In this article, we will explore some of these trends that are expected to revolutionize the insurance industry and the customer care service.
Understand Customers better using Big Data
Information and its comprehensive analysis remains a very important competitiveness factor in the insurance industry. For that reason, Big Data claims its position as a key tool, a source of information and supply chain segmentation that enables the customization of customer responsiveness and the optimization of price management, resource estimates and risk selection. Therefore, it will play a crucial role in improving and optimizing business processes, but also in understanding, collecting, retaining and interacting with clients with a more tailor‐made approach.
Internet of Things will Interconnect Vehicles
The Internet of Things seems like a forward‐looking vision, but the development of interconnected vehicles with wireless and Bluetooth connection, that allow for the connection of mobile devices, are already a reality.
The launch of driver behaviour monitoring‐based insurance products, through black boxes, GPS or mobile applications, will be the next step. This continuous data sharing tendency enables a better understanding of customers and their needs, which will facilitate a more segmented policy, complaints or risk management, thus contributing to reduce fraud. The existence of an interface that provides all this information in an integrated manner will be key to ensure the right response is given to each customer.
A Customized Insurance Policy for each Customer
The creation of consumer‐focused and customized solutions is a critical competitiveness factor for modern companies, and this is even more accurate in the insurance industry. The investment and the development of data analysis tools is essential to understand consumer behaviour and generate value for the customer.
An insurance company that understands customer behaviour and knows, for instance, when a policyholder got married, may proactively start an interaction to offer the insured person a new service package or, if the insured person has just had a child, to try to attract him/her to get a life insurance.
The Importance of Mobile Applications
Mobile applications are becoming increasingly important in various sectors, and the insurance industry is no exception. These applications allow insurance companies to provide greater autonomy to the policyholders regarding: consultation, renewal and payment of the policy, monitoring and driving support, reporting insurance claims and accident follow‐up and travel assistance processes, adding value to the customer and enhancing process efficiency. It is up to the insurance companies to define omnichannel strategies, so they can interact with their clients in an integrated manner across different channels.
The Expansion of the Collaborative Economy
The technological, social and economic evolution has been changing mobility, particularly in big cities. Car sharing has been a growing practice since 2015, presenting new challenges for insurance companies, who feel the urge to identify innovative options in car insurance contracts, so they can cope with these new consumption models and be able to provide a unique and customized customer service experience in a world of permanent resource sharing.
The influence of the Digital Revolution on Customer Experience
Today’s consumer is increasingly digital, always connected and with increased access to information, either from a smartphone, chat or social media. Insurance companies should adapt, developing new interaction channels and digital strategies that ensure greater availability, immediate response and a more efficient management. Digital transformation will revolutionize the industry and improve customer experience.
The Power of Recommendation
Searching for and analysing products and services available online comes naturally nowadays for consumers, as well as sharing and ranking their positive or negative interaction experiences with companies. The power of online recommendation has, therefore, a strong influence on consumption decisions, particularly if the services concerned require some sort of customer loyalty, which is the case for insurance products. That is why it is so important that these evaluations and opinions are monitored, gathered and incorporated in companies’ customer service strategies, so they can prevent the escalation of negative situations.
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