Omnichannel engagement approach boosts policyholder retention

Policyholders who engage with their carriers through multiple service channels, including mobile, online and in-person over the phone, are 21% less likely to cancel their policy, while those who repeatedly use multiple engagement channels have a 25% higher retention rate, according to a consumer survey by insured.io.

Consumers that use digital insurance portals are also 12% less likely to cancel policies when compared to policyholders that don’t use digital portals, the insurtech reported. Policyholders using advanced features, such as reviewing policy documents and accessing ID cards, have even higher retention rates.

Showing the importance of a balanced approach that blends online, mobile and in-person interaction, sending a cancellation notice by text message on the day of renewal can reduce cancellations by 52%, according to insured.io.

Even something as simple as collecting a policyholder’s email address can have an impact. Securing a consumer’s email through a digital portal can lift retention rates by 13%.

“In a world driven by convenience and accessibility, customer engagement is key to the success of any business. For insurance providers, this means offering seamless and user-friendly digital experiences,” Steven Johnson, co-founder and head of product for insured.io, said in a release. “Even we were surprised by the magnitude of an omnichannel approach’s impact on customer retention.”

Easy payments

One of the most vital components to an outstanding omnichannel insurance experience is seamlessly integrating payments into the digital experience, according to the insurtech, which noted making payments is the top reason policyholders use digital portals.

Insured.io noted that it isn’t uncommon for insurers keep payment systems separate from the rest of their digital portal. However, this results in policyholders having to log in twice in order to make a payment. This additional step can cause many to abandon the process, reducing the portal’s use.

To overcome this, digital portals should have integrated payment processes that offer flexible options such as auto pay, payment scheduling and allowing customers to pick their payment date. The portal should also be able to handle a range of payment types, from credit cards and EFT to PayPal and other digital services.

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