The insurance industry is lagging behind other digitally progressive verticals. It is a regulated environment where traditional approaches have worked for so long. If it isn’t broken, why fix it?
The global insurance sector is complex and one of the least technologically advanced. A plethora of technological advancements have presented themselves throughout this time but left on the shelf, these remain ineffective in their transformative potential. The pandemic has dramatically reshaped the sector globally. To meet the needs of the changing economic landscape, operating models have to be adapted and processes realigned to navigate a new reality.
Uncertain revenue streams and overstretched customer services mean insurers, alongside other legacy industries, have had a challenging time since 2020. Customer claims such as travel, health and car insurance to name a few have led customer service departments to reach their peak.
Gartner predicts that by 2022 70% of all customer interactions will involve technologies, including mobile messaging, chatbots, and machine learning. So why do insurance and social media not sound quite right in the same sentence?
Lack of assurance with insurance
When selecting an insurance policy, customers want speed, simplicity, and needs met with the smallest headache possible. Customer engagement nowadays must go beyond the segmentation of simple demographics and harness the interests and purchase history of the individual to tailor communications and recommendations.
Digital is transforming the customer experience across sectors such as sport, fashion and travel, meanwhile, the insurance industry has not hit its peak. Digitalisation and innovation have presented themselves in the wake of the global pandemic. However, this has highlighted difficult-to-navigate websites, error-laden forms, delayed emails and as a result, inundated call centres.
As the landscape has shifted with information obtained online and insurance policies completed digitally, communicating effectively with customers is key to meeting post-pandemic needs. It is a risk that can cause reputational damage to insurers if policies change and customers are in the dark until days later.
Traditional insurance players with legacy-driven websites will fall behind without the right technology to meet customer needs – so why is social commerce significantly underestimated in the insurance industry?
The modern insurance landscape
Europe has been slow to adopt social media as a core business tool. We’ve seen success in Asia, Africa and South America, which has now engaged a curiosity with European counterparts.
From sourcing quotes to submitting essential policy data and complaint management, the opportunities for insurers to maximise their service delivery is significant. It’s time to reposition technology as a vital asset for the insurance industry as we look to strategies for 2022.
In a modern insurance landscape, building an attachment with customers is the difference between sustaining loyalty, improving performance and losing a customer to a competitor. With the pandemic driving a hugely competitive market, insurers must harness the capabilities of technology to enrich the value delivered to customers and improve bottom lines.
Digital differentiation
Instant messaging, such as Whatsapp, is a tool insurers can use to make it make sense to their customers, whether that’s through educating consumers about what is on offer and reducing their premium, or helping those hesitant with reminders of the benefits, incentives and discounts. With documentation exchanged in one place, both parties no longer have to deep dive into a sea of emails to get the information they want. WhatsApp provides end-to-end encryption to protect customer privacy and adhere to GDPR.
Insurers can reach out to open an instant and real-time dialogue through WhatsApp. WhatsApp can enable insurers to send a quick message about policies rather than using precious customer service resources needed for more immediate requests. The informal tone means messages feel authentic and less overtly commercial.
Insurers are not using these chatbot channels enough. Millennials are maturing, and insurers are not active where this demographic spends most of its time. Customer wants can turn into transactions through direct communication and data insights available. Over the past two years, instant messaging has developed to enrich this further. Given circumstances are constantly evolving, having an easy way to contact and update providers is essential.
A frictionless future for insurers
Customer needs are changing, and businesses must do the same to keep up. Marketplaces are saturated and prospects are easily distracted. We live in an experience economy, and tailoring the customer experience with an omnichannel strategy will be essential as insurers look to 2022 and beyond.
Social commerce is the ingredient for success. An insurance agency’s front doors may be closed, but their instant messaging channels shouldn’t lie dormant as a result. Offering a frictionless customer experience is vital, as complaints and claims become more complex and the landscape shifts.
It’s time for the industry to pick up the social baton and start swinging.
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