Six trends influencing how customers relate to their insurers

April 6, 2022

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RHI Agency Team

The COVID-19 pandemic drove some of the most significant changes the markets have witnessed. The pandemic changed how people work, play, and shop. Like many other industries, the insurance sector also shifted consumer expectations. Customers are now more empowered than ever, when searching for and maintaining their insurance coverage. In addition, customer experience leaders shape customers’ expectations outside of the insurance business, such as Amazon and Netflix. These companies continue to set a high standard in digital interactions and alter how customers evaluate their relationship with insurance providers.

One of the biggest challenges for insurers right now is finding a way to help them navigate through the challenging landscape without losing sight of what increases customer satisfaction. The most significant way forward is to understand how the consumers are shopping and what drives them to one particular brand. As of now, five crucial trends can push insurance companies forward by making consumers relate to the products.

Maximize the digital experience

One cannot deny that customers are in the center and more empowered than ever before. It is now essential to grant customers greater access and a better-personalized touch. Insurance offering companies have to ensure that they can provide an omnichannel experience. An ecosystem with various digital offerings, mobile-optimized websites, and responsive apps can do just that.

According to the numbers, customers that use digital services during their shopping experience are happier with their purchases. Conversely, customers who purchase through traditional channels have a more difficult time getting a price. Although just 6% of buyers utilize assisted online, the average price satisfaction among these consumers is 773—62 points better than quote satisfaction amongst website consumers. Notably, this “human plus digital” method presently provides the highest level of quotation satisfaction.

But the data available now reveals that more than 42% of the insurers cannot reach the best practices for digital cross-channel personalization. This is when customers have to provide better optimized digital experiences to help retain and gain customers in the longer run.

Abundance is not the case.

Before the pandemic hit, it was a far-sighted thought that things could stop available. However, when the pandemic disturbed the supply chains globally, the world experienced shortages. This put an end to the culture of abundance, which drove people to think about their consumption choice, mainly with new generation insurance consumers. According to our Insurance Consumer Study, a more significant chunk of these consumers prefers digital experiences that support sustainable travel and purchasing behaviors. Helvetia, a Swiss insurance company, reacts to this need with a scheme that allows clients to offset their CO2 emissions.

The new world- virtual space

It was a time when virtual space was just a thought. Right now, the Metaverse is more accurate than conceptual. People want to know more and spend both time and money doing just that. Metaverse is the happening place right now, where people, primarily gamers, believe that money can be made and lost. This is a ground for the insurance industry, which is trying to look for ways to help customers face and respond to its risks. Nobody is jumping the guns at NFT insurance coverage, which might be in the offing. However, insurers have to think about the inevitable expansion towards the Metaverse. After all, crypto is becoming a viable option for the payments of insurance premiums.

Factual information

There are no two opinions that the internet is flooded with information- both good and untrue. When you give a chunk of the population access to an unimaginably large database via smartphones, it becomes difficult to find accurate information from trusted sources. Every industry faces a factual information crunch, and companies are now making it a point to provide information to the customers, irrespective of day and time.

Insurers and insurtechs are reacting in several ways to this requirement. Customers of a general insurer in the United Kingdom, for example, may use their smart speakers to obtain answers to their motor insurance policy inquiries, with responses drawn from a constantly updated library of frequently asked questions. Fluo, a French insurtech, also claims to assist consumers to improve their insurance coverages by evaluating contracts and finding redundant coverages.

More customer-centric insurances

With the enormous growing competition, companies do not have more choice than to battle for survival. With fewer than 2% new customer arrivals each year, growth sometimes necessitates stealing market share from the competition. This places a strong emphasis on distinction and value communication.

Companies need to look at their brands for differentiation and express what value they can provide that competitors cannot. For example, GEICO and USAA, two of the fastest-growing carriers, have seen tremendous growth by providing a clear value offer to their target sectors of the insurance market. Simply put, insurance companies are now consumer brands, and they must discover methods to stand out in a competitive market to attract and keep clients.

Fundamentally at the core- Care

One thing that covid taught the world is the fundamental necessity of giving and receiving care. Today, respect is valued, a more visible offering, and empathetically discussed by companies. The growing digital experiences that insurers are developing for consumers and staff reflect this elevated level of care. Some companies are assisting in improving access to care services and crisis intervention for disability insurance claims and self-service aids for psycho-educational, relaxation, and coping skills training. Such interventions are designed to enhance disability outcomes by addressing mental health issues that may arise from a debilitating incident.

 

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