The truth about moments of truth; it’s the end-to-end experience that matters
In the insurance business, we often talk about specific events as “moments of truth” for insurer-customer relationships—key moments where loyalty can be won or lost, such as when it comes time to make a claim. But with current group claims rates as low as 1 in 100,000, the vast majority of members won’t actually arrive at these moments every year. In fact, it turns out that insurance customers typically only interact with their provider once or twice a year, whereas they might contact their bank up to 20 times more often.
This low frequency of customer touchpoints in insurance makes it extremely important to get it right every time—because almost one-third of consumers say they’d walk away from a business after just one negative experience. In other words, a key moment of truth might be something as simple as a change of address.
That’s why it’s critical to deliver a seamless customer experience from end-to-end, or risk losing members.
A fragmented member experience
Insurance is an inherently complex product, further complicated by a distribution model that may include funds, agents, brokers, and other third parties. The result can be a disjointed experience, further fragmented into clunky online and offline channels.
From the beginning of their insurance journey, members are often confused and overwhelmed by the number of options available—on average, they make contact with their insurer four times just to find out about different products. Before making a purchase, six out of ten customers have already switched channels and one in six never hear back from the insurer. Even when there’s follow-up, it’s often from a different employee, creating significant gaps in the overall customer experience—with each touchpoint seemingly disconnected from the rest.
And once the customer has embarked on their insurance journey, it isn’t all plain sailing. The result is that around 40 percent of insurance customers don’t understand the value that their policy provides and are considering cancelling it altogether.
Understanding what members want
as part of a positive customer experience. Today’s insurance members are shaped by their digital interactions in other sectors such as retail and banking that offer seamless omnichannel journeys that save time and hassle at every step. Based on these experiences, they expect insurance products and processes that are simplified, transparent, and easy-to-understand.
A growing number of insurance members are managing their insurance online, particularly for routine transactions such as account changes and payments. Yet, despite the acceleration of this shift towards digitisation since the Covid-19 pandemic, over 30 percent of customers are unsatisfied with the digital channels on offer from their insurance provider. There’s an opportunity for insurers to enhance the customer experience across their digital ecosystem, tailoring virtual interactions according to the needs and preferences of a range of diverse customer types.
However, while having the right digital tools is essential, it can’t replace the human touch altogether. Life customers who speak with their agents at least once a quarter have an average customer experience score that’s significantly greater than those with annual touchpoints. In fact, agents and advisers are still the highest-rated channel for customer satisfaction, as members expect personalised advice and trusted expertise to help them navigate their insurance journey. Most importantly, they want the freedom to choose when
Creating a seamless customer journey
Adopting a holistic approach to the end-to-end customer journey will enable insurers to deliver frictionless, digitised touch points and personalised service that feel seamless and interconnected. Leveraging best-of-breed tools and technology can make it quick and easy for members to interact online while freeing up staff to focus on more complex claims and customer issues.
For example, automated underwriting simplifies the process of onboarding new customers, with fast processing and approvals. Similarly, harnessing automation in claims processing enables basic claims to be handled immediately, speeding up claims decisions and payouts for customers. Through the power of AI, insurance companies can deliver round-the-clock omnichannel support, using virtual chatbots to provide members with instant responses to their queries and connect them with a staff member if they require more in-depth assistance or expertise.
To create a hyper-personalised experience at each customer touchpoint, insurers can further leverage AI and machine learning to run advanced data analytics—generating deeper insights into member preferences, behaviours, and even potential future risks.
Equipped with total visibility across the end-to-end customer journey through a centralised database, agents and staff on the frontline are empowered to tailor solutions and recommendations to individual member needs. This in turn helps customers better understand the value of their insurance cover, boosting customer satisfaction.