3 technology trends to create a seamless insurance-customer experience

Video chats, interactive video statements and asynchronous messaging can provide options to connect with customers.

Video communication is the channel of choice for tech-savvy Gen-Z and millennials (42% of the U.S. consumer population) and is not a fleeting trend. (Photo: Kate Kultsevych/Shutterstock.com)

By now, insurance executives are highly aware of consumers’ rapidly rising expectations for high-quality customer experiences, what we call internally the era of “digital must.” Digital is no longer a nice to have, but a “must-have.”  The good news, however, is that with 74% of executives expecting their customer experience budgets to increase, insurers finally have the ability to create these modern customer-facing experiences.

Yet, through multiple conversations with said executives, it seems that many are having trouble bridging the gap between their current baseline experience and the improved target vision. Do the following questions sound familiar to your organization?

If so, here are some key technology trends that can help drive your organization closer to its end goal of a modern and seamless customer experience.

Video chat

While video chat as a technology has been evolving over the years, the demand for video communication has taken off during the COVID-19 crisis. With that said, video is not a fleeting trend. With the digitally native Gen-Z and tech-savvy millennials generations (a combined 42% of the U.S. consumer population), video is the channel of choice.

With this increased consumer acceptance, insurers who have yet to include video chat capabilities into their value chain are missing out on a great opportunity to improve their customer experience. For example, from a customer service perspective, consider incorporating video communication into your contact center technology. By enabling video chat into your sales process, your customers would still have the ability to have a “face-to-face” conversation with an agent while reviewing policies or products. Alternatively, right after a car accident, a claim adjuster can help console frazzled policyholders while helping them collect the information necessary to start the claims process.

The good news is that video technology and API-platforms such as Zoom, Twilio, and Vonage API, have decreased the difficulty of integrating video into your customer service channels. One other trend picking momentum is to have a unified collaboration platform for both internal (enterprise) and external purposes. For example, platforms — such as Microsoft Teams — are creating a good amount of impact in this space.

Interactive video statements

Video statements have two key benefits. First, they help boost a customer’s understanding of the information on a policy statement, explanation of benefits, or billing document, nudging customers toward self-service. Customers who would have previously needed to speak to a customer service rep or an agent are now better able to help themselves. Second, the interactivity of video statements can help an insurer better determine where their customers have issues and route them to their support channels accordingly.

Finally, let us not ignore the “green” or sustainability aspects of video statements. While the idea of a “paperless office” is not new, it is still not a reality for many insurers. Video statements can help push insurers to a more environmentally friendly future since video statements can help consumers better understand the information that is being conveyed to them in their billing and statements.

Unified and asynchronous messaging

With unified and asynchronous messaging, your policyholders will have a channel that will track their conversations end-to-end (from before signup, during servicing, through claims). Lemonade Insurance, the recent IPO InsurTech, has mastered this experience with its messaging-heavy mobile app and “Maya,” their digital assistant. Everything from the initial sign up and general questions to even the first notice of loss is initiated using the chat-based digital assistant. Yet if “Maya” cannot easily answer a customer’s query, she will escalate the conversation to a human agent. This example highlights a seamless blend between the human and digital worlds.

Consumers are busier, more demanding, and more diverse than ever. Omni-channel, unified, and asynchronous messaging will help insurers engage their customers on their desired channel and at their preferred time.

A direct-to-consumer (DTC) channel is necessary

Luckily, implementing a DTC channel can be simplified using two key techniques. One includes leveraging the existing back-end systems your insurance company already has. For example, building a mobile responsive portal where potential customers can explore and sign up for new insurance policies. Post signup, the new policyholder is directed to the current servicing process supported by technology already in use (i.e., customer portal, claim process, contact center technology).

The second technique to launch a DTC insurance channel is to leverage an ecosystem of third-party technology. Instead of building the DTC channel and the supporting technology from scratch, consider patching together leading third-party tools to create the experience that your customers desire.

Proactive customer engagement

Historically, insurance has been a “set and forget” necessary nuisance for customers. However, with insurance becoming more competitive, insurance companies need to increase the value that they are providing to their customers. This means shifting from a reactive mindset to a proactive mindset. To accomplish this, take a deep look at your data.

In the retail and banking industries, more large companies are leveraging customer data ecosystems to help create a unified view of the customer. Real-time interaction data (not just transaction data) helps build a holistic view of customer action and identify additional ways to serve the customer. Typically, this includes leveraging a customer data platform to help consolidate customer data across channels and databases, interaction hubs to monitor and trigger personalized experiences and offers, and tightly coupled CRM and contact center technology. All help ensure that your employees can easily access a 360-degree view of your customer. Smart insurers are learning from more technology-forward industries, creating their own customer data ecosystem centered on their policyholders.

These digital must engagement tactics are just the beginning. Insurers who think “Digital Must” will gain an incredible competitive advantage. Those who don’t can expect to lose customers.

Kelechi Anyanwu is a practice lead at Tata Consultancy Services (TCS) where she advises banking, financial services and insurance clients on customer experience and engagement solutions. She can be reached at kelechi.anyanwu@tcs.com.

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