Jon helps clients leverage technology, data, content, and agile operations to create new strategies, products, consumer interaction points, and business models in alignment with the total Customer Experience (CX).
Articles | October 9, 2020
Historically, most customers have viewed their insurance policies as a “set it and forget it” type of product. A customer selects their insurance—probably without digging too deeply into the details—and then just pays their bill each month. They hope they never have to use it, but if/when something happens, they call their agent. For the most part, their relationship with insurance has been entirely reactionary. And because of our uniquely disruptive times, customer needs and preferences are evolving.
The good news is that the insurance sector is investing in technology and innovation. According to IDC Research, spending on customer experience solutions are expected to grow 7.9% per year, reaching $27.9 billion in 2022.1
With this investment, insurance companies have an opportunity to fundamentally shift how they interact with their customers. By leveraging technology investments and adopting a more proactive risk management mindset, insurers can potentially
place themselves more in the center of their customers’ daily lives. For example, consider how customers proactively think about and manage their finances. They frequently check their banking, credit card, and investing activity to stay on budget and make good decisions. With this level of interaction, those businesses enjoy a larger mindshare and role in their customer’s lives. Insurers can do the same by offering products and solutions that add value to customers, driving satisfaction and loyalty in the process.
These concepts all lead to win-win scenarios that align customers and insurers. Customers can benefit from more awareness, enhanced experiences, and tailored risk coverage, while insurers can reduce claims, write more policies, and gain more mindshare. With an increasing number of new entrants in the insurance industry, now is the right time for incumbents and industry leaders to explore ways in which technology can empower them to better serve customers.
1. “Accelerating Customer Experience Transformation in the Insurance Sector,” IDC Research and Liferay, February 2020. Retrieved from https://www.liferay.com/en/resources/l/insurance-idc-infobrief