A product-based organization is a likely contributor to poor insurance customer experience. Centering marketing and operations on the customer’s needs and wants is a profit-enhancing stance for insurance providers. Carriers that fail to respond to customer’s needs risk more than just customer retention. They are likely to incur higher servicing costs, miss out on referral and word-to-mouth business and damage the company’s brand and reputation.

One of the main sources of customer frustration is the general inconsistency in experiences or treatment when using different channels. Providers often fail to use information they already had about customers, and as a result are unable to offer relevant products and services. At an age of evolving technology, customers expect quick, efficient, and personal service. Insurers should take advantage of current technology to create a distinctive customer experience by using data to personalize customer interaction, and by engaging with customers when and how they want.

In order to deliver exceptional customer experience, providers should follow this three-pronged approach:

  1. Establish a Customer-Centric Operating Model. Transition from a product-driven to a customer-centric operating model.
  2. Build a Customer Experience Management Hub. Leverage customer analytics to identify the next best set of actions and messages for customer interaction.
  3. Create Customer Experience Delivery Operations. Deliver customer experience consistently and efficiently across multiple channels.

With this approach, insurers are well-equipped to address both changing customer demands and the new requirements caused by recent technological developments. In the face of rising customer expectations and the promise of improved service delivery, standing still is not an option for insurers.

If you subscribe to Best’s Review, read “Turn This Frown Upside Down” for a more detailed discussion of this topic.

© A.M. Best Company – used with permission

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