With the COVID-19 crisis and other unforeseen events worldwide, more and more people are becoming conscious of an increased need to be insured. It’s only natural; with the world becoming more and more susceptible to big changes and different events happening by the hour, people want to prepare for anything that can happen.
However, in the post-COVID-19 time, many things are changing, and that also includes how insurers can provide a superior customer experience. In the World Insurance Report 2021 by Capgemini and Efma, they have detailed different ways of how insurers can change their ways so customers can enjoy better services and have a much superior customer experience.
Establish digital channels
The World Insurance Report 2021 shows that 60% of insurance executives admit that COVID-19 has affected customer acquisition, and 40% also say the same regarding customer retention. The report also included that 87% of these executives plan to invest money to introduce digital solutions, so they can provide better services for clients.
Also, it’s probably because, according to the report, digital solutions are popular for 24/7 availability, ease of information management, and search functions. It’s a bit different from the old business model where customers have to contact agents all the time or go to the insurance company.
However, it should be noted that while digital solutions are promising, it’s tough to use them in providing a personalized experience for customers, especially for those looking for complex and unique insurance products, but it’s not impossible. When creating digital solutions, the report recommends insurance companies rely on the CARE (convenience, advice, and reach) approach to make their digital channels more suitable for customers.
If you own an insurance company, now that the world is moving past the COVID-19 pandemic, you should know that insurance companies are also moving more towards the digital world. It means to satisfy customers in the coming years, you need to think about what you can do to create a digital channel that will provide your customers with what they need.
According to the report, of the 87% of executives looking to invest in digital solutions, only 32% of them believe that digital channels are effective. However, one should note that nowadays, more and more industries are moving online, whether it’s food, clothing, or services, most things can be found online now, and sooner or later, people will start looking for insurance online. When that happens, you need to be there.
Most of these executives who don’t believe in the effectiveness of digital channels attribute it to the lack of personalized advice capabilities of digital channels. However, technology has moved forward so much now that personalization has increasingly become normal on the internet. With emerging technologies, such as augmented and virtual reality, artificial intelligence (AI), and data analytics, providing a personalized experience for customers even through digital means is highly possible. It’s all down to taking the time to know what customers need and investing in the right technology for insurance companies to be ready to provide quality services for a better customer experience post-COVID-19
Be more connected
The COVID-19 pandemic has prompted businesses in different industries to shift their focus to providing digital solutions to further provide their products and services to people, even with the restrictions posed by the pandemic. Now, executives in the insurance industry are beginning to shift their focus, too.
They aren’t wrong, as it has always been the way that all industries were going even before the pandemic. The change just went ahead faster due to the demands of the pandemic. Digital solutions provide customers with a way to get the products and services they need without too much hassle, and it can be the same way in the insurance industry.
However, introducing digital platforms doesn’t mean that insurance executives should forget about their brokers and agents.
Today, agents and brokers are still insurance companies’ best distributors. The problem is that according to the report, approximately 40% of first-line customers are having a hard time communicating with brokers and agents regarding their insurance plans, especially outside office hours. It also doesn’t help that the pandemic is also a limitation for everyone to do their work as they did before because of the lockdowns and social distancing being roadblocks.
For small-to-medium businesses (SMBs), though, the numbers are kinder to brokers and agents. Approximately 50% of SMBs found their experiences with brokers and agents to be convenient and satisfactory. However, it should still be noted that 60% of SMBs like digital channels better.
Agents and brokers will always be a part of the insurance industry. However, to prepare for the future, it’s now time to realize that the digitalization of the industry will require companies and their agents and brokers to adapt. With approximately 66% of companies providing digital tools to their agents and brokers, it’s time for companies to evaluate how they can have their digital channel and their agents and brokers thrive together.
Insurance is timeless
Pre or post-COVID-19, it’s always time for people to get insured. With recent events making people realize how fast things can go from good to bad, and worse even quicker, there will always be a demand for the insurance industry.
With most industries undergoing digitalization, there’s no reason for insurance companies to be left behind. At Matrix Insurance, we provide insurance products and services by ensuring we provide a great customer experience on our digital channels and our agents and brokers. Visit Matrix insurance now at https://www.matrixinsurance.net.au.