Consumers Expect a Better Customer Experience
Technology is empowering consumers to demand a better customer experience, and this is causing disruption in every industry, including life insurance. They want an experience as seamless as buying a grill or vacuum on Amazon.
But insurance is different, right? Developing a quote for a life insurance policy is a lengthy process. It requires extensive details about a consumer’s health and lifestyle behaviors, along with invasive procedures like a blood test. An underwriter has to receive all that information and evaluate it before a policy can be bound.
The underwriting process is lengthy and highly involved. Oftentimes, it changes the initial quote and can lead to an unpleasant customer experience. After the policy is bound, the policyholder usually receives little to no communication from the life insurer, except for periodic invoicing of premiums. After all that give, new policyholder's perceive very little get in return.
Investments in Technology Require a Vision
Insurers can provide an improved customer journey, thanks to advancements in capabilities and data. Leading insurers are investing in technology and embracing transformation now to stave off threats from InsurTech startups.
But transformation requires a vision. Insurers must place a higher value on customer experience, and support it with technology investments. They must focus on delivering a better customer experience not only during the policy's purchasing phase, but throughout the customer journey. Only then will they get a better understanding of the customer.
Better Insights Deepen Customer Relationships
With a better understanding of the customer, insurers can deepen policyholder engagement. For example, they can leverage new and emerging value-adds, such as devices that encourage a policyholder to lead a healthier life. These devices often generate additional data that can strengthen the relationship and add more insurer value. Life insurers interested in helping you avoid a claim – novel idea. It's a win-win.
Customer data can also help insurers identify and execute around life events. For example, life insurers can leverage mortgage data as a trigger to upsell existing customers to purchase additional life insurance, as well as acquire new customers.
To learn how Equifax can help enable you to deliver a better customer experience, visit our website or contact us.