Customer experience is much more than just a buzzword, especially in the insurance industry.  Clients are more likely to recommend a company that can guide them in choosing the right insurance product for them and their families. 

And that is why it is time to understand the factors contributing to customer experience in the insurance industry. This blog post explores the importance and methods of delivering an exceptional customer experience to your clients. 

State of customer experience in the insurance industry

The insurance industry has evolved significantly in recent years, mainly due to the emergence of automation and artificial intelligence for customer experience.

Customers now expect insurance companies to offer a better customer experience, tailored advice, shorter wait times, efficient internet-based solutions, and more.

Here are several statistics that will help you better understand the state of insurance customer experience:

  • According to IBM, 85% of insurers prioritize customer experience throughout the journey.
  • Zendesk reports that 50% of consumers will switch to a competitor after one bad experience. 80% said they would switch to a competitor after two bad experiences.
  • Accenture indicates that 71% of consumers aged 55+ would like internet claim processes to replace traditional in-office processes.
  • IBM has shown that 50% of insurance customers prefer personalized digital communication to telephone- and postal-mail-based communication.
  • According to Emplifi, 42% of customers said a seamless omnichannel communication experience is their top priority.

The numbers in the previous tell us that the majority of clients for an insurance company now focus on their customer experience equally, if not more, than the product itself. 

Why is customer experience important in the insurance industry?

Customer experience is essential in the insurance industry because putting the customer first and offering tailored advice builds a significant edge over the competitors. 

Clients expect insurance companies to abandon archaic systems and methods of communication. They want to see insurance organizations embrace new technologies, simplify communication, engage with them ongoingly, and offer relevant, customized advice.

By focusing on improving insurance customer experience, insurance companies can make sure that they: 

  • Remain a top contender for clients to choose from in the increasingly competitive landscape
  • Improve customer satisfaction which leads to reduced insurance policy turnover
  • Build a community and boost loyalty in clients
  • Identify customer pain points and cater specifically to those challenges 
  • Increase their chances of securing referrals from their clients 
  • Build an open channel of communication that allows them to collect feedback, identify customer issues, and resolve them quickly. 

Deliver exceptional customer experience

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How to improve customer experience in the insurance industry: 8 ways

If you want to improve your customer experience, follow the steps below to adjust and enhance your customer strategy

  1. Understand your customer’s requirements and pain points 
  2. Provide omnichannel claim support to streamline conversations 
  3. Implement personalization across all verticals 
  4. Provide faster resolution to customer queries 
  5. Work on streamlining buyer’s journey 
  6. Monitor customer feedback across all channels 
  7. Improve social media presence for greater visibility 
  8. Provide 24/7 availability for self-service 

1. Understand your customer’s requirements and pain points

While it may be true that everyone needs insurance, knowing exactly who your clients are and what they need enables you to provide exceptional customer experience. 

Depending on your company’s niche or business model, identify the specific type of client you serve along with its specific needs. Knowing this information helps you be prepared and tailor the product/service accordingly. 

  • Use data and product survey questions to discover where your customers like to hang out online. 
  • Ask existing insurance policyholders what technical terms or jargon they struggle to understand. 
  • Use social media polls to discern whether your customers prefer human or AI interactions and how often they want to receive communication from you. 
  • All of these customer preference insights can help you make meaningful tweaks.

2. Provide omnichannel claim support to streamline conversations 

According to IBM, 50% of clients prioritize and prefer personalized digital communication. What this means is that it’s never been more important for insurance companies to be able to move fluidly from one communication channel during client interactions.

For instance, a customer calling in may have just requested a quote on a life insurance policy online moments ago. An agent should be notified to review the details, make adjustments, and send a quote back to the customer via email or text.

Providing omnichannel claim support can increase efficiency, improve customer interactions, and help your company save money. 

Make sure that the communication tools you use in your organization support easy transitions between channels. Birdeye Messaging helps businesses view all client interactions in a unified inbox, leading to a smoother customer experience. 

3. Implement personalization across all verticals 

According to DataArt, embracing personalized communication should increase revenue by 60% per customer, improve customer engagement by 89%, and boost broker channel effectiveness by 60%.

Because customer needs can vary from one person to another, insurance companies need to tailor their approach to the individual. When choosing insurance providers, clients are majorly expecting personalization and may not settle for anything less.

Image shows how insurance companies can use Birdeye to send review requests to their customers

Gordon Watson, CEO at AXA Asia, feels, “ The business benefits of personalization are clear: sales, customer loyalty, and engagement, and a higher success rate when cross-selling.”

Personalized communication through tailored emails, texts, and mail will ensure better customer satisfaction.

Of course, the more you invest in knowing your customers via surveys and interviews, the better you can personalize your products. Birdeye Surveys allows businesses to conduct pulse surveys and in-depth surveys to gather data and personalize communication. 

4. Provide faster resolution to customer queries

Nothing improves customer experience than an immediate fix to a customer’s problem. 

Insurance companies should prioritize faster resolution and, if possible, “first call resolution.” This is where your agents answer questions and resolve problems the first time customers call in instead of spreading the communication over multiple calls.

Image shows how insurance companies can use Birdeye to track customer complaints and resolve them quickly

Facilitate these lighting-fast resolutions by streamlining how your insurance company processes incoming inquiries:

  • Arm your teams with the knowledge they need to see a client’s profile and access institute solutions.
  • Implement AI-powered chatbots that help customers find self-service resources, and phone numbers and answer simple queries. 
  • Adopt a ticketing system that helps your team track concerns, closure TAT, and implement solutions. 

First-call resolution helps companies create a great customer experience by reducing the stress involved in the claims process. First contact resolution will also free your agents to handle more daily calls.

5. Work on streamlining buyer’s journey

IBM indicates that 85% of insurers deploy CX (Customer Experience) initiatives throughout the customer journey. As companies compete on the basis of customer service, it is time to focus on every client interaction. 

  • For example, focus on making it easy for prospects and customers to find your company online. Streamline methods for customers to review and understand your policies. 
  • Keep essential aspects of service, like the privacy statement, visible and quick to access. And make it a no-brainer step to obtain quotes promptly.
  • Prioritize your digital marketing strategy by using social media to connect with clients, creating educational content, and utilizing automation to ensure a streamlined process.
Image shows how insurance companies must boost local SEO to show up for relevant local searches

Optimizing every step of the customer service process is essential for a boosted customer experience in the insurance industry. 

6. Monitor customer feedback across channels 

Customer feedback allows your insurance company to identify areas where processes need improvement. 

Even the most meticulously developed strategies can have gaps in service. Understanding where you’re falling short will help you optimize the right things and optimize the insurance customer’s experience at every level. 

Customer feedback helps you:

  • Be more agile. Insurance companies are going through a technological revolution, and the industry is changing rapidly. An overreliance on technology, however, has led to decreased customer satisfaction. Organizations must listen to their customers and be willing to pivot fast and anticipate customer needs.
  • Improve your digital touchpoints. Customer feedback can help you understand what channels your customers are using, how they are using them, what they expect to be able to find or do on your website and social media, and much more.
  • Remain relevant. Just because new technologies exist doesn’t necessarily mean these tools automatically improve customer experience. Listen to your customers, and you can ensure that your company is relevant, serving its customers at a high level.
  • Create a dialogue with your policyholders. You can solicit customer feedback at every touchpoint to ensure everything is moving smoothly for them. However, you should avoid overwhelming customers with surveys and commit to learning about one touchpoint before gathering data on another.
  • Monitor sentiment: Tuning into your customers’ sentiments will ensure you’re on top of emerging preferences and service gaps.

Online reviews, specifically about customer experience, help with driving decisions. The power of cross-promoting reviews on social media channels helps potential customers decide to choose a Globe Life product. They’re helping their customers build a bridge by reminding them they are making the right decision and supporting a loved one. 

7. Improve social media presence for greater visibility

The Independent Insurance Agents of Dallas indicates that it costs an insurance agency seven to nine times more to attract a new policy-holding customer than it does to retain an existing one.

Your insurance company’s social media presence plays a vital role in continually engaging your customers and fostering loyalty among them. It allows your customers to interact with your content and develop an affinity for your brand.

You can also use social media to:

  • Offer customer support,
  • build trust and credibility with your customers,
  • and listen to your customers and what they’re saying about you.

The key is ensuring you have the right team and resources to grow and enhance your social media presence to offer better customer service.

8. Provide 24/7 availability for self-service

AI-powered tools and chatbots allow insurance companies to offer 24/7 support. It’s a significant customer experience boost when your policyholders can file claims and get answers anytime. 

These digital solutions are also great self-serve options for customers interested in a quote or finding information about their policies. This availability reduces wait times on the phone and keeps you from overloading your internal teams.

As an added benefit, AI and chatbots can also be used to analyze customer data and develop customized experiences for the individual.

Image shows how insurance companies can use Birdeye to provide 24/7 availability to customers with chatbots

FAQs about insurance customer experience

1. How important is customer experience in insurance? 

More than 85% of insurance companies are now prioritizing better customer experience. Insurers who don’t develop and employ a suitable strategy could quickly become obsolete in a customer-centric environment.

2. How do you measure customer experience in the insurance industry? 

Establish, track, and monitor customer experience metrics, such as Claim Processing Rate, Straight-Through Processing Rate, Customer Retention Rate, Customer Referral Rate, and Net Promoter Score.

3. What do customers look for in an insurance company? 

Most customers seek accurate information from their insurance agents, tailored solutions, and suggestions or advice based on their situation. First-call resolution should be the goal.

Use Birdeye to boost customer experience in the insurance industry

The insurance industry is nuanced, and your clients have specific needs. You’ll need a thorough and organized system covering everything from customer touchpoints to social media strategy to meet their needs. Your insurance customer experience approach will directly impact your ability to land new customers and build a loyal customer base.

If you’re looking for a comprehensive solution to make your life easier, it may be time to explore how Birdeye can help you boost your customer experience.

Check out our pricing today! 

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