How Insurtech can drive positive customer experience

Mark Thomas is Founder and Director of Compare My Insurance.

Faced with an uncertain world, consumers are embracing the security of the right insurance for their homes, health and livelihoods, with the Association of British Insurers reporting a record increase of sales of policies such as individual protection insurance in 2023.

Clearly, the demand for insurance products is steadily increasing, but with this, consumer expectations around customer experience is also growing. Insurers need to keep up with these evolving demands in a way that goes beyond lower premiums, or risk lagging behind competitors in a highly competitive market.

The Insurtech space, with its emphasis on innovation through technology, is uniquely placed to respond to these shifting consumer expectations through the application of CX-focused technology. We explore how technology is ushering in a new era of customer experience in insurance at every stage of the customer lifecycle.

Synthesising Data

The insurance industry is built on data, and Insurtech firms are developing new ways to integrate this data into their operations, through better CRM technology, artificial intelligence, automation and more. In this way, they are ideally placed to bring this data to the forefront of quoting, pricing and the claims process, creating streamlined experiences for customers, and an insurance process that is fast, transparent and highly accurate.

Sophisticated risk assessment and pricing algorithms are becoming central to calculating more accurate premiums, providing transparent breakdowns, and reducing the risk of overpayment while offering customers the data they need to make truly informed decisions about their personal or business insurance.

Streamlined Service

Consumers want convenience when it comes to insurance, and this demands a frictionless customer experience. While the human touch is still central, supplementing this with the right technology at the right time is crucial to speeding up the insurance process, and ensuring customers have access to the information they need.

One of the simplest ways many Insurtech firms are achieving this is through instant experiences, implemented through digital processes. Allowing customers to access insurance options through online platforms, implementing AI chatbots that provide 24/7 service for quick queries, and eliminating the need for paper-based processes all help to reduce friction for customers, while allowing them to receive support conveniently without a reliance on the availability of the insurance agent.

Personalising Experience

The trend towards personalisation is being felt far beyond just the insurance industry, but with both personal and commercial insurance often requiring a highly tailored approach, it’s a key differentiator for competitive Insurtech firms.

Insurtech firms are perfectly placed to leverage the data they have at their disposal through their digital platforms, IoT devices and online customer interactions, to offer truly personalised options to consumers.

Insurers can gather detailed insights into customer behaviour, allowing better understanding of their needs and insurance requirements beyond basic demographics, while enhanced data collection also allows for more dynamic and accurate risk assessment strategies. Beyond this, detailed customer profiles enhances the customer experience at every stage, from tailored recommendations for insurance products to more relevant marketing and informational communications, firms can leverage this data to build real rapport with customers.

Balancing Technology with the Human Touch

While AI, automation and technology enables Insurtech companies to reach and engage with customers much more effectively, it also brings with it the need to balance this technology with human expertise.

Consumers may demand convenient, speed and streamlined processes, but they also want to feel valued by having the option to interact with a real person when necessary. While automated processes can boost customer experience by lightening the load of human workers, customers can quickly become frustrated if their only line of communication with a company is through a chatbot or other automated service.

Instead of a blanket approach that replaces customer interaction with automated processes, Insurtech firms must instead look to where synergies between humans and technology can best be created, and where human expertise can leverage the data gleaned from AI and automation. Identifying the points within the customer journey where technology has the biggest positive impact, and where human empathy is needed is key.

Final thoughts

Insurtech is ushering in a new age of customer experience in the insurance landscape. Blending data-powered personalisation with faster, more efficient customer experiences, Insurtech is highlighting the growing need for customer-centric practices in insurance.

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