Insurers: Welcome to the departure lounge. Our destination is the North Star of superior customer experience, typified by rising Net Promoter Scores, deepening brand loyalty and enhanced customer lifetime value.
If you have been with us so far, we previously described our North Star as the manifestation of "concierge" insurance service, a concept where agents form lasting customer relationships based on intimate knowledge of customer needs, leading to exceptional service at critical moments of truth, such as sales, underwriting and claims. We also discussed the technology pillars of AI, analytics and data management as the foundations for success.
Today, we will examine six guiding principles to follow along the way, each considered to accelerate progress and avoid missteps.
1. No need to digitize everything
We all know the way forward is not a paper trail, but a digital highway. However, it's easy to stumble in the race to digitize everything. Avoid this trap. First, rationalize your process. Insurance is a maze of structured and unstructured forms. Strive for straight-through processing. Identify where the bottlenecks are – claims processing, correspondence, manual tasks – then digitize those choke points. Focus on the front office, where customers come in contact, and let the back office catch up, if need be. You'll get best results when you streamline the areas where humans play a role first.
See also: How Cloud Tech Improves Customer Experiences
2. Leverage data analytics and AI for innovation
If you followed our advice on the importance of AI, analytics and data management, you will be in position to rapidly advance your agent interactions toward hyper personalization. To know your customer better, leverage data analytics and AI to avoid bias, spot trends and gain insights. Automate routine administrative tasks so your people can perform at their peak. Use your data smartly, to inform and justify your decisions. And ensure appropriate testing and governance to maintain an ethical stance.
3. Commit to a customer-first approach
According to Forbes, 86% of customers are willing to pay more for a great experience. Why not give it to them? Use your platform to enhance attention, trust and engagement. Simplify intake, especially in claims, where customers are already in a state of stress. Use technology to amplify human interactions, to inject empathy and to offer ancillary services in times of need (i.e., daycare, short-term rentals, alternate financing, etc.). Start with a minimum viable product, then test and learn as you go. Nothing will take you further faster than focusing on your customer.
4. Pay attention to shifting mindsets and culture
Evolving times call for adaptation and transformation. Be willing to embrace change from the top. Challenge the status quo as you consider modern customer needs. Give your people the tools they require to interact with a tech-savvy population. Take your cues from the insurtech movement. Disruption is on the way. Adopt a disruptive mindset.
5. Seek and keep quality partners
As the population ages, newer perspectives emerge. Are you building your talent base and peripheral resources around an ecosystem that's up for the challenge? True customer intimacy should be your main mission. Seek partnerships to promote a best-of-breed experience. Technology will only get you so far. You will need bright, innovative people to maintain the pace.
See also: 3 Steps for Insurers to Keep the Human Touch
6. Fearlessly fail forward
The future of insurance is no place for the complacent. You must make bold moves to avoid getting lost in the shuffle. Call your shots. Choose your openings. Then act. By balancing the present to architect the future, you will always have a base on which to improve. Remember, innovation comes from taking calculated risks. Don't let your past deter your vision for the future.
Keep these principles in mind as you streamline processes to eliminate routine tasks, amplify experience and enhance agent productivity. Expand your experience one step at a time, keeping your eyes fixed on your North Star. Leverage the expertise of wise partners, to avoid the pitfalls of doing it all yourself.
