Why insurers should focus on hyper-personalized claims
It's no secret that there's a need to improve customer experience across the insurance industry.
As we’ve all been exposed to an increasing number of digital services over the last two years, customers have come to expect a certain level of personalization. This continues to influence how people interact with their insurers when trying to do things like file claims or apply for new insurance coverage. Customers want, and need, data-driven conversations that help them learn more about the company they’re trusting with such an important part of their life.
It’s no secret that there’s a need to improve customer experience across the insurance industry. Static, paper forms and PDFs are ready to be replaced with an interactive, digital experience that provides customers with the level of personalization they’ve become accustomed to. In fact, new research found that 85% of insurers believe the level of live interaction customers experience with home deliveries set a new benchmark for the insurance claims experience.
It’s safe to say that digital transformation should be a driving force behind every insurance company’s innovation roadmap. Simply put, it’s the biggest way insurance companies can future-proof themselves by:
- Increasing customer experience scores;
- Improving claims handling accuracy; and
- Reducing claims expenses.
That’s why now is the perfect time for insurers to start outfitting employees and customers with solutions that enable richer conversations. The right technologies will help to create interactive, two-way conversations and drive hyper-personalization throughout the claims process.
Hyper-personalization improves the customer experience
Over the last several decades, a form of hyper-personalization has been used by retail giants like Amazon and streaming platforms like Netflix. By gathering and aggregating real-time user data, AI has given companies like these an incredible awareness of the ‘user journey’ individuals follow.
It’s also allowed companies to provide their customers with tailored products and services at scale that meet them where they are in the way they prefer most. This is all possible with technology solutions and processes that allow companies to collect and leverage the necessary data in a more conversational and human way. Today, insurers can leverage modern, cloud-based solutions to provide these same tailored, personalized interactions across the claims process — ultimately improving the customer experience while also building trust.
Hyper-personalization helps insurers make their members feel known, seen and heard. By automating many of the processes that a member finds relevant, it shows them that an insurance company is willing, able and enthusiastic about putting its member at the center of everything they do. Insurers can meet these expectations with the use of solutions that pull customer data into digital forms, for example, saving time and hassle for both the insurer and end customer, while also providing all parties with 24/7 access to the needed information.
Optimized claims processes create happier employees
When employees have the resources and knowledge necessary to perform their jobs, they’re more likely to have higher morale. Thus, they’re more likely to provide a better customer experience. Employee happiness is contagious, after all.
For anyone working in the health care or insurance industries, the last few years have been especially stressful. And, we know that filing an insurance claim can cause additional challenges for the insured member. That’s why time and efficiency are crucial when navigating this process. Hyper-personalization comes to the rescue here, again, by giving employees the necessary information to process and file claims with less effort on the customer’s end and more efficiency (and less room for error) on the business side.
Throughout the claims process, adjusters can gather relevant data with fewer barriers than the restrictive approach provided by using paper forms and relying on static, one-way communications. With less time and effort spent on gathering/processing customer feedback, adjusters have more time to offer support and show empathy while filing claims. Interactive, two-way conversations are a great way for adjusters to provide that support.
Additionally, with the right processes and technology, insured members will receive the same level of care and support from employees who are working remote, in-office or hybrid. Perks that increase job satisfaction and employee happiness, like a flexible working situation, can empower people to go above and beyond for the company and its members.
A proactive approach helps manage risk
Being proactive allows more time for planning, gaining awareness of the potential challenges one might face and deciding on the best way to manage said challenges. On the other hand, being reactive means facing risks unprepared and without a solid plan to move forward. When it comes to the insurance industry, managing risk is what it’s all about. But, that doesn’t always mean that every insurer gets it right. In order to minimize risk and increase a customer’s chances of avoiding incidents, insurers need insights into how they can help insured members do that.
Fortunately, there are an increasing number of proactive processes, apps and other technologies hitting the scene. For instance, some insurance companies offer advice guides to help customers understand what type of coverage they need as well as risk areas they should be aware of. Other models, like telematics, track and share information that can be used by insurers to:
- Accurately validate claims;
- Build stronger relationships with customers; and
- Initiate a faster, more cost-effective claim.
There are even safe-driving apps that encourage drivers to take additional precautions to avoid accidents. One of these apps, EverDrive, allows drivers to compete with friends, family or other drivers — even rating them on who’s the safest driver. Some drivers might be incentivized by monetary gains so use-based coverage models, like Slice’s “pay-as-you-go” model, are also becoming popular.
Whatever the model, insurers should focus on how hyper-personalization in claims can give them the data they need to create specific and unique experiences for risk management. further customize and personalize the journey a person has with a company, insurers must create coverage models that are tailored to a new or existing member’s lifestyle and specific needs versus taking the one-size-fits-all approach.
To successfully personalize the customer experience, insurance companies need the right technology in place. That means finding a solution that enables insurers to move away from static, one-way communications to two-way, interactive conversations that allow customers to feel seen and heard.
Ruth Fisk (rfisk@smartcommunications.com) brings more than three decades of experience in the insurance industry to her role as vice president of Insurance Strategy at Smart Communications. Any opinions expressed here are the author’s own.
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