Insurance companies are starting to put customers front and center—for good reason. The insurance industry is behind the curve in customer experience (CX)—and that impacts the bottom line. Poor customer experience takes its toll, leading to customer churn.
For many years insurers focused on the business side of insurance—the policy and transaction—without considering what compels a person to make that transaction. Within the past decade, as customer expectations have increased, insurers have started paying more attention to CX. According to a Gartner 2023 survey of CIO executives (including 91 insurance CIOs), improving the customer experience is a higher priority than growing revenue or developing new products and services.
To improve CX, insurers must overcome five operational barriers. A customer journey management (CJM) platform helps insurers improve communication and deliver personalized experiences that create satisfied, loyal customers.
5 Barriers to Better CX
Rising rates. Mounds of paperwork. Confusing bills. Claim processing delays. Insurance customers have plenty of reasons to complain. Consumers may not trust insurance companies because of negative perceptions or past experiences. To rebuild that trust, insurance agents must provide transparent practices, fair pricing and prompt claims settlements. To deliver exceptional customer experiences throughout the customer journey, companies need to overcome five barriers:
1. Inefficient claims processes
The claims process—the only time most customers interact with their insurance company—is a critical touchpoint. Processing a claim is complex and time-consuming, involving multiple steps, extensive documentation and long approval times.
To navigate the cumbersome claims settlement process, customers often use multiple communication channels and interact with several departments. Just reaching the right agent to discuss whether it’s worth submitting a claim can be a time-wasting, exasperating ordeal. Lack of transparency, poor communication and lengthy delays frustrate customers, negatively impacting customer satisfaction. Streamlining and improving the claims journey is crucial for enhancing the overall CX.
2. Limited digital capabilities
Some insurance companies lag behind in adopting and offering robust digital tools and platforms. This can result in outdated, inefficient processes and a lack of self-service options. It forces customers to rely on traditional, manual procedures and face unnecessary hurdles. Instead of having the option to view why a bill changed digitally, a customer is forced to sit on the phone with the call center, wasting time and negatively impacting the experience.
3. Lack of personalization
Insurance customers expect tailored services—product recommendations, coverage options and customer support—that cater to their specific needs, preferences and life situations. Many insurance companies struggle to deliver those personalized customer experiences. When they fail in their personalization efforts, insurers pay the price in customer dissatisfaction and churn.
4. Absence of proactive communication
When insurance agents don’t communicate regularly and proactively, tension arises. Customers may feel neglected, be uninformed about policy or bill changes, and be unaware of new offerings and discounts, such as usage-based insurance (UBI) programs or bundling savings.
5. Inconsistent omnichannel experiences
Many customers want to engage with their insurance company via digital and in-person channels. Insurance customers want to research products online and continue the buying process by talking with an agent. They expect a seamless experience across various channels, including websites, mobile apps, phone calls and in-person interactions. Inconsistencies in information, service quality and support between channels can lead to frustration and a disconnected customer journey.
Related eBook: Empathy-Driven Customer Experiences Accelerate Business Results
Insurers that successfully overcome these five barriers can differentiate themselves and build long-term customer loyalty.
How can you do that?
Addressing these barriers requires a customer-centric approach, digital transformation, streamlined processes, improved communication and a focus on personalized experiences.
Customer Journey Management: The Foundation of CX Improvement
Customer journey management improves the customer experience by using customer data to analyze and predict behavior, determine the next best action and deliver the right messages at the right time. CJM overcomes most of the five barriers by providing:
1. Claims process optimization
By integrating data from multiple systems and stakeholders involved in claims processing, CJM enhances efficiency and customer satisfaction. CJM streamlines the claims process by:
- Automating workflows
- Tracking milestones
- Sending real-time claim status updates
2. Streamlined processes
CJM streamlines complex insurance processes, such as bill payments, by automating and optimizing workflows. Mapping and visualizing the end-to-end customer journey allows insurance agents to identify bottlenecks, inefficiencies and pain points. CJM:
- Automates repetitive tasks
- Simplifies documentation
- Reduces manual interventions, resulting in faster and smoother customer journeys
3. Personalization
CJM analyzes customer preferences, behavior and needs to deliver personalized communications at the right time. By integrating customer data from various touchpoints and channels, CJM tailors interactions and provides relevant and timely offers, recommendations and communications.
For example, when the system detects that someone is reviewing the payment FAQ page, the system can send a proactive, personalized message via the customer’s preferred communication channel (email or text), outlining the various payment methods (ACH, credit card), options (full payment or installments) and channels (pay by phone, website or mobile app).
4. Proactive communication
CJM enables insurers to proactively engage with customers at key moments of their journeys, enhancing customer satisfaction and loyalty. By leveraging real-time data and triggers through journey orchestration, the CJM system sends timely and relevant notifications:
- Changes in bills
- Renewal notices
- Payment reminders
- Claims status updates
- Policy changes
- Targeted offers (e.g., for an umbrella policy or new spousal coverage)
5. Seamless multichannel experiences
CJM creates and delivers consistent experiences across multiple channels, including websites, mobile apps, call centers and in-person interactions. By coordinating and synchronizing customer interactions across channels, CJM delivers a unified and cohesive experience, reducing customer frustration and improving satisfaction. For example, the system detects that someone was comparing auto insurance rates from several companies. That information becomes part of the customer data profile, accessible to agents when the customer calls. Armed with that information, the agent can highlight the benefits of their company’s policies with the customer.
Overall, customer journey management empowers insurers to design, automate and optimize customer journeys, overcoming key barriers and delivering exceptional customer experiences. By leveraging data, automation and personalization, CJM helps insurers stand out in a highly competitive industry and build long-term customer loyalty.
CSG Xponent Ignite for Financial Services and Insurance provides pre-built journeys (such as plan switching and payment) that create an emotional connection with a customer in their time of need. The foundation is CSG Xponent, our customer engagement platform that combines a customer data platform with industry-leading journey orchestration and analytics.
Find out how customer journey management can move the needle on your customer experience goals.
