Customer experience issues in the insurance industry: keys to overcoming challenges and standing out from the crowd

Professionals in the insurance sector are facing major challenges in terms of customer experience. Customer expectations are evolving rapidly, digital transformation is essential, and personalization is becoming essential.

In addition, claims management, competition, data security and multi-channel communication are all challenges to be met.

This article examines these 7 customer relationship issues in order to better understand and tackle them.

Rising customer expectations

Today's customers expect more than just an insurance contract. They want a personalized, frictionless experience.

To meet this major challenge for the insurance industry, insurers need to invest in customer knowledge. They need to understand their customers' needs, especially as more than 7 out of 10 consumers* say they are willing to share their personal data with their insurer if it benefits them.

To achieve this, we need to review our customer and user pathways, and keep abreast of changing needs, in order to offer appropriate services and levels of autonomy.

Digital transformation: a major challenge for the insurance industry

Digitalization has profoundly altered customers' service habits. They want to be able to :

take out insurance,
manage their accounts
and file claims online,

That's why insurers need to invest in digital transformation to deliver a smooth, simple customer experience.

A 2021 Accenture study shows that 65% of online insurance subscribers plan to continue using digital services. We mustn't lose sight of these expectations of the new generations: millennials and Generation Z.

Personalizing the customer experience

Every customer is unique, with specific needs and preferences. To remain competitive, insurers need to be able to offer personalized solutions. That way, customers feel they're paying the right price.

This requires in-depth collection and analysis of customer data. Offering the right services at the right time, and providing transparency in the details of offers. The aim is to make it easier to compare different offers.

Improving claims management

Insurance claims can be a complex and stressful process for customers. Insurance companies need to work on improving claims management, making it more transparent, fast and efficient.

Clear communication and customer support throughout the claims process are essential for a positive customer experience.

It's well known that this is a key moment in the relationship with the customer. The slightest error on the part of the insurer can very quickly result in a breach of contract.

Stand out in a highly competitive sector

In an industry where many companies offer similar products, it's essential to stand out from the crowd by delivering a superior customer experience.

This can be done by investing in technological solutions:

feedback management solution,
CRM improvement,
better data transmission between tools,
use of artificial intelligence...

Improving customer service and offering innovative products are also possible ways of countering customer volatility.

With the Hamon law, it's easy to change insurers, and 80%** of millennials (born between 1980 and 2000) say they're ready to take out insurance with a new entrant. The biggest challenge facing the insurance sector today.

Data security: an absolute priority

The protection of personal data is a major concern for customers. Insurance companies must implement robust security measures to protect the sensitive customer information in their possession.

The credibility of the insurance company and the trust built up between it and its customers are at stake.

Ensuring consistent multi-channel communication: the key challenge

Customers use a variety of communication channels and expect a consistent experience whatever channel they choose: mobile apps, social media, phone calls, website, branch visits, etc.

Insurers need to be present on these different channels and offer a seamless experience. This is a real challenge for any company.

Today, as we can see, the use of technological solutions is essential, but does not replace contact with an advisor when it comes to managing a claim and all the emotional aspects that go with it.

Faced with the many challenges facing the insurance industry, a customer-centric organization seems inescapable .

By investing in a customer feedback measurement and analysis tool, insurers can gather valuable information, identify areas for improvement and offer a personalized, seamless and secure experience .

A customer-focused approach enables us to differentiate ourselves in a competitive market and meet the growing expectations of today's customers.

Would you like to find out more?

You can watch the replay of our webinar on this subject:

*Deloitte survey"The French and their insurer" - 1st edition

**Bain& Company, 2018