With the inception of the cell phone, and the steady adoption of smartphones in the decades since, we’ve seen a revolution in customers' expectations and how they interact with brands. With the world in their pocket, the customer expects their experience to be both digitized and easy.
This expectation isn’t confined to one industry. It has transformed the way nearly all businesses interact with their customers and has created a competitive, fast-paced digital marketplace.
The insurance industry has not been immune to this upending of traditional processes. To not only survive but excel in this evolving digital landscape, it’s become imperative for companies to leverage the right technology and resources to address the consumer's pain points and create the most effective and convenient experiences possible.
Digital adoption became a fast priority for the auto insurance industry, where digital channels bring in more auto insurance customers than agents and call centers, according to J.D. Power. In fact, more than half (53%) of first-time customers begin their auto insurance experience via digital channels, and 42% of policyholders who switch insurers and 46% of retained customers list digital as their preferred choice.
That same study also finds that satisfaction rates are highest when customers have digital-only interactions with their insurer.
See also: Can AI Serve as a Concierge?
Creating Digital Touch Points
With proof that policyholders prefer digital-first experiences, companies like ours must continually ask, “Where are the touch points the customer wants along the journey?”
At the highest level, our customers want the claims process to be fast and efficient. A majority of our policyholders prefer this happen through self-service options, like our app. Let’s call this type of customer “Pool A.” But there’s still that other pool of our customers, “Pool B,” that value human interaction within their insurance experience. So now, we have the challenge – or the opportunity if you’re a “glass-half-full” kind of person – of striking the balance between these two types of customers so we are accommodating their needs and exceeding their expectations.
To achieve this balance, we’re targeting significant, long-term technological implementations. As our tech continues to advance and evolve, the “bots” servicing our Pool A customers will become more sophisticated. As this trend continues, we’ll see our Pool B customers organically acclimate to this service method and lean more into digital interactions to resolve their queries.
Leaning Into CX ‘Superpowers’
You may be wondering where that leaves customer service leaders like my team and me. What we have found is that these experts are exactly who you need when designing digital experiences and re-thinking traditional solutions. Customer service experts understand that the collective CX superpower is “active listening,” allowing us to tackle highly nuanced or complex interactions with ease. We know what customers need and expect, and how to deliver in the digital landscape. We are also adept at leveraging the operational expertise of our leadership team, which is key to scaling a digital-first operation. Working with our technology partners, we've been able to balance both worlds, trust our customers, and open new avenues for accomplishing our business goals.
Implementing AI-powered Solutions.
According to studies, ChatGPT reached 100 million users in just two months. By comparison, it took 16 years for the cell phone and seven years for the World Wide Web to achieve that same user adoption. Clearly, it’s not a matter of “if,” companies will implement AI solutions to supplement their customer journey, but “when.”
Our customers now have access to things they did not before thanks to our new Gen AI solutions, such as 24/7 support and more options to self-serve via calls or online interactions. This ensures that our policyholders receive prompt and efficient service while allowing our customer service team to focus on different, more complex responsibilities. Since we rolled out this chat product in April, over 40% of our customer-facing chats no longer require human interaction.
Our customer service team was also vital in the creation and development of another Gen AI solution, which streamlines our claims process even further by using large language models (LLMs) immediately following the submission of a claim (first notice of loss, or FNOL). This has been beneficial to both the customer and our CX team, as it results in fewer back-and-forth conversations and quicker resolutions.
Three things have changed for us since launching our Gen AI solutions:
1. Our knowledge base process has evolved. Our content sources look different than they did when solely designed for our human employees. They are tailored for the bot to easily source from, so they are shorter and easier to digest.
2. We are rethinking solutions to customer problems. Instead of applying the usual tools to improve efficiency, we can now better support our customers through the creative use of new technologies and pathways that we’re developing and integrating to meet their needs.
3. Our early containment/resolution rate surpasses most in the industry. The insurance industry has been slower to achieve high levels of contact containment to date, but generative AI is changing the norm.
See also: A Reality Check for Generative AI
Empowering and Complementing Our Human Workforce
By appropriately leveraging these tools to streamline processes, we’re empowering our human experts to focus on the nuances of each case to prioritize delivering empathetic, effective experiences.
The truth? AI-based machines are fast, accurate, and consistently becoming more and more rational. But they aren’t as intuitive, emotional, or culturally sensitive as humans.
These human characteristics will always be staples of exemplary customer service, and when that is coupled with best-in-class technology, you’re only enhancing that experience. The narrative about the future of work, in CX and otherwise, should shift from AI “replacing” us to AI “enhancing” our roles to the benefit of everyone involved– especially our customers.
