Three keys to unlocking better customer experiences in global insurance

Customer experience (CX) is on the minds of everyone who works in the global insurance industry right now. McKinsey sums up the urgency well in a recent report: “The low frequency of customer touchpoints in insurance means that it’s extremely important to get each one right.” And the stakes for getting it right are high.

Customer experience is the critical success factor in customer retention, while also having the potential to drive real operational efficiencies for carriers at a time when they’re feeling pressure from macroeconomic factors.

Strong security and data privacy practices on the part of technology partners is paramount to advancing customer trust

It’s not surprising then that so much of the content and conversation at the recent Insurtech Insights Europe conference in London, one of the largest of the year for the industry, centred around strategies for improving the customer experience. There are three things those in the global insurance industry can focus on to improve and get more value from their customer experience projects. We’ll share them here.

1. Focus on security efforts that build trust from customers

Many sessions at Insurtech focused on how insurers could better utilise the customer data they already collect to improve personalisation efforts. But deeper personalisation efforts hinge on customers sharing more of their data – and the industry as a whole must continue to build trust to do that. Sharing data introduces some risk for customers, and they may hesitate to share more than they deem necessary. Speakers shared how concerns can be assuaged through being transparent about how the data will be used.

Strong security and data privacy practices on the part of technology partners is paramount to advancing customer trust. Customers will not share more data if they do not trust your technology. Your partners must have industry-leading security, have a very deep understanding of just how much the security threat landscape shifts, and are in compliance with the regulatory and statutory mandates that help every business keep up with it. For instance, there are massive changes that enhance card security under PCI v 4.0 and it is imperative to make sure that insurers and their vendors and partners comply. Clients’ trust in the technology is essential to building these types of personalised experiences.

2. Look to AI to augment, not replace

The hottest topic of Insurtech was artificial intelligence (AI) – evidenced by more than a dozen sessions devoted to it. Some insurers and partners are already using AI and generative AI technologies with great success, including to automate more claims processing for products with lower premium rates.

Digital should be a way of doing things, not a thing to do

These conversations were sort of a paradox that everyone will be familiar with: a strong sense of urgency, mixed with a ‘wait and see’ attitude. The industry knows it has to get to know what all the buzz is about, but is still confused on whether AI will actually be the differentiator it demands. Overall, the industry has almost a fear of missing out, with companies looking to leverage AI to outperform their competition, tempered with knowing that their core legacy systems need attention first.

What one speaker said in relation to digitising the customer experience is relevant for the AI discussion as well: “Digital should be a way of doing things, not a thing to do.” It only makes sense to be digital-first if it improves the experience for the customer, not just because others are doing it. There are still areas when a human touch will be better.

That need for balance came through as it relates to AI. There is still demand for human interaction in the buying process for some insurance products. Overall, the consensus was that it was important to weigh the risks, including data protection, security and ensuring regulatory compliance when implementing AI or emerging tech to streamline processes and drive efficiencies.

The critical takeaway? Automate what you can, and let your people handle the hightouch areas of your business. One attendee put it well and said that the purpose of insurance is protecting people. It’s important not to let the excitement over AI overtake the basic need for a person to talk to another person when they have a concern.