Customer experience in insurance is far from reaching its potential. The sector faces a critical challenge: today’s customers demand personalized advice, omnichannel experiences and transparent communication – aspects that many insurers are still failing to meet.
When insurers fail to meet expectations, the impact is significant. A single negative experience in the insurance industry can cause 50% of customers to switch to a competitor.
Today's policyholders demand an experience that is:
Personalized
Convenient
Integrated
Attractive
Transformation is urgent: 70% of customers demand more fluid digital experiences across all platforms. Outdated systems are no longer an option.
This reality underscores the critical need for insurers to innovate and kazakhstan whatsapp number data 5 million their customer experience strategies. Not only to meet expectations, but because investing in CX drives operational efficiency, improves retention and boosts business results.
What specific benefits can insurers get? Let's analyze...
The importance of customer experience in insurance
Customers want a simple, hassle-free experience, whether they’re purchasing home and auto insurance or accessing policy information through an app. Focusing on customer experience isn’t just about customer satisfaction; it directly impacts loyalty, retention, and business growth. That’s why 85% of insurers now plan to launch new customer experience initiatives across the customer journey.
Let’s explore why improving customer experience in the insurance industry is more important than ever.
Customer experience is a determining factor in customer decision making
Customer experience is now a primary factor in determining which insurer a customer chooses. 46% of customers rate experience as the primary factor when selecting an insurance company, but only 18% rate their experiences as excellent and just 42% rate their online interactions favorably. This gap highlights an opportunity for you to differentiate your brand by improving the overall experience. When customers feel valued and supported through easy access to information, fast claims processing, and personalized communication, they are more likely to choose and stay with an insurer.
Customer experience directly impacts revenue
Improving customer experience isn’t just about pleasing customers; it has a direct effect on business performance. McKinsey tells us that insurance companies that excel at customer experience are 80% more likely to retain their customers and derive 2-4 times more value from new business launches. How does this happen? Customers are more likely to stay with a company that understands them and provides simple, intuitive services throughout the entire customer journey, which in turn stabilizes revenue.
Omnichannel experience improves retention
Did you know that 40% of people won’t even consider doing business with a company if they can’t use their preferred method of communication? Makes sense, right? We all want flexibility, especially when it comes to insurance decisions. Customers now expect to use multiple channels when researching and purchasing insurance. The ability to switch between a mobile app and a phone call or from online research to speaking with an agent creates a frictionless experience. That kind of seamless omnichannel experience is exactly what creates a frictionless experience. A seamless omnichannel experience ensures that customers receive consistent service, which is essential since 75% of customers said they would switch insurers for more convenient service options. So if you don’t offer that seamless, connected experience, someone else will!
Next, we'll discuss ways to improve the insurance experience for customers through easy-to-use digital tools, feedback gathering, and other methods.
Winning hearts: 7 tips to improve customer experience in insurance
Let’s explore some viable implementation approaches that can improve the insurance customer experience.
1. Create seamless omnichannel experiences
31 % of customers start using a desktop or mobile site, but only 27% resolve their issues there. In fact, a Capgemini report shows that over 50% of customers use three or more channels before making a decision. This highlights the importance of a seamless omnichannel experience to improve customer satisfaction.
Since customers use multiple channels throughout their journey, you need to collect feedback from all of them , integrating multiple tools into your tech stack and creating seamless omnichannel experiences. Here’s how:
Track how customers move between channels to detect pain points and deliver personalized experiences.
Integrate multiple systems like CRM, marketing automation, website, feedback tool, and more to give all teams access to comprehensive customer data for a unified approach.
Ensure customer data is shared across all departments so interactions remain seamless, no matter where they occur.
Invest in the right tools that connect data and customer interactions across all platforms for a seamless, consistent experience.
2. Harness the power of feedback and surveys
Leverage the power of surveys to gather targeted feedback on customer interactions. These surveys reveal critical points in the customer journey and provide important insights into customer preferences.
More and more insurers are understanding the influence of customer feedback . According to a Deloitte survey, a staggering 70% of them use it to shape their CX strategies .
When you act on feedback, you show customers that you truly care about their opinions, which builds trust and loyalty . This commitment to listening and responding not only improves their experience, but it also encourages continued engagement. Organizations that maintain regular feedback collection and application reports see a 20% increase in customer satisfaction and a 15% increase in retention .
