Despite economic uncertainty, cost increases, and intense pricing competition, most insurance companies (88%) consider investment in customer experience to be a priority,
This is according to Talkdesk's latest research report, "Building Loyalty in Insurance Through Elevated Customer Experiences," which offers valuable insights into the primary causes of CX friction, their impact on customer loyalty, and the ways in which insurers plan to use technology to enhance both employee and customer experiences.
“Insurance companies are siloed, and this lack of unified information is resulting in disconnected customer experiences and inefficient support. The good news is that tools such as AI, analytics, and system integrations allow insurance CX leaders to improve member experiences, while also developing the insights and programs that can help drive increased share of wallet. Whether launching self-service capabilities or empowering associates through information access and targeted training, insurance CX leaders will soon reap the benefits of digital transformation,” said Andy Flynn, Senior Vice President of Industries and Global Customer Success, Talkdesk.
The need for exceptional customer experience
The current economic situation presents a challenge for insurance companies, with high-cost pressures, staffing concerns, and rising customer demands. Still, these organizations understand the link between employee and customer experiences. Almost all CX insurance professionals consider their contact centers to be a crucial element of their overall CX strategy.
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Over 90% of CX insurance professionals consider providing exceptional customer experiences as a critical factor in driving customer loyalty. To achieve this, it is essential to equip employees with tools to address customer concerns effectively. Not doing so can lead to a decline in employee retention (51%) and a reduction in the quality of customer support (47%).
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There is a significant increase in customer expectations from insurers as compared to last year (88%), putting additional pressure on CX professionals to enhance the speed, simplicity, and clarity of interactions.
Handling CX friction is of paramount importance
Insurance companies often have disconnected processes and channels, leading to a disjointed customer experience that can lower retention rates. Therefore, it is crucial for insurers to eliminate obstacles that customers may encounter while accessing customer service, during the interaction, and even after the initial contact.
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The claims process is the primary cause of CX friction, as reported by 73% of respondents and the most critical area for building customer loyalty since it is one of the few instances where policyholders interact with their insurer directly.
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Friction in the customer journey may result in customers not renewing policies (59%), not recommending the insurer (56%), and not adding new or expanded policies (53%), resulting in negative outcomes.
Leveraging artificial intelligence to boost CX
The report suggests that insurance companies are planning to adopt a proactive approach to implementing new technologies. Automation is expected to be an important area of investment, which will enable insurers to improve data collection and analysis while providing agents with the necessary information and guidance to navigate complex customer experience issues.
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Approximately 88% of insurance companies intend to invest in CX technology within the next two years to address friction points and enhance the overall customer journey.
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Insurance CX professionals are prioritizing investment in AI technology to gain better insights into customer issues and predict their needs. Additionally, self-service tools are expected to become more prevalent, providing customers with the ability to resolve issues independently and with greater ease (51%).
