Emerging tech fuels insurance consumers' on-demand expectations
As the average amount of time consumers are willing to wait shrinks, businesses can't afford to disrupt the customer journey with long wait times and poor service.
Customers today have the power to order cars on-demand or have groceries delivered right to their doorstep within a few hours.
Instant gratification has become the expectation, with consumers quick to voice frustrations via social media and online review sites after an extended wait.
As the average amount of time consumers are willing to wait shrinks — a recent estimate sets that time to a meager 13 minutes — businesses can’t afford to disrupt the customer journey with long wait times and poor service.
As more and more industries adopt on-demand technology to meet heightened expectations of consumers, insurance providers will also need to embrace new technology in order to improve the customer experience.
Related: 3 technology trends impacting insurer success in 2018
Avoid frustrating your customers
Think back to the last time you renewed your driver’s license. It probably involved rearranging your schedule to accommodate the trip to the DMV, where you likely waited for an hour or more just to speak to a representative.
In a perfect world, everyone could complete the renewal process in a few minutes — and perhaps even without having to physically visit an office. But in reality, customers know it’s going to be a lengthy process.
The dreaded DMV visit is an example of how consumers have become reprogrammed; simple errands like going to the DMV or post office are reminders of just how much we have come to expect instantaneous service.
Some consumers are willing to sacrifice their time for excellent in-person service, but businesses should be constantly seeking new ways to expedite the customer journey and eliminate downtime.
Time is one of multiple key components of overall customer satisfaction, but it’s far from the only determining factor.
Customers also want easy processes that require minimal effort, as well as some semblance of control over their journey.
Related: Video: Digital transformation strategy for insurance companies
Apps like Uber not only let consumers call cars on demand, they also show customers how long they have to wait and provide identifying information about their driver.
Knowing the status of when to expect things and putting a name to the face of a service representative can help businesses increase customer retention. If businesses hope to retain their consumer base, they’ll need to invest in solutions that anticipate consumer expectations and streamline all aspects of the customer life-cycle.
On-demand technology and insurance
In response to evolving consumer expectations, companies across a variety of industries are adopting technologies that anticipate advancements and proactively address customer needs.
For insurers, this means considering ways to both accelerate the speed of service and simplify the claims process for customers.
Consider auto insurance claims, which can be so complex and confusing it can test the limits of even the most patient drivers.
Related: 10 lessons in customer journey mapping for the insurance industry
Customers trying to settle accident claims are already frustrated — the last thing they want to deal with is a confusing claims process that eats up even more of their time.
But increasingly, auto insurers are using InsurTech solutions to enable customers to settle their claims virtually and easily, creating a more seamless experience.
Leveraging new technology can reduce the cycle time for claims processing and increases customer satisfaction, helping businesses retain the insureds and get them back to their usual schedules.
More insurer solutions
Another way insurers are responding to customer complaints is by implementing customer effort scoring, which measures how quickly and effectively issues are resolved.
Customer satisfaction increases significantly and customers are more likely to recommend a business when consumers perceive their own effort during a transaction to be “low.”
With InsurTech solutions, companies like auto insurers can meet the fast-evolving expectations of their consumer base and ensure carriers can operate more agilely. In addition, the adoption of machine learning and AI allows companies to automate manual processes, which enables service representatives to reallocate more resources to non-standard projects.
It won’t be long before technology and evolving consumer expectations push businesses to start anticipating, and meeting, the needs of young customers who seek instant gratification.
Related: Here’s how one incumbent insurer became an InsurTech startup
The price of a consumer’s time grows increasingly expensive. While not all businesses are ready to deliver services on-demand today, it won’t be long before there’s an app to satisfy the customer’s need for speed.
Alex Meisner is director of Innovation at Snapsheet. To reach this contributor, send email to bridget.devine@walkersands.com.
The opinions expressed here are the author’s own.