Identity & Fraud

Insurers: Identity Authentication Improves Customer Experience

Insurers: Identity Authentication Improves Customer Experience

November 28, 2018 | Kevin Leslie

Insurers Want to Give Customers a Better Digital Experience

Insurance companies want to provide their customers with a frictionless digital experience. According to the analyst firm, Celent, 77% of insurance companies say that improving customer experience is a key driver in their digital transformation.[1]

In fact, customer experience oftentimes beats price. [2]According to Capgemini’s Digital Transformation Institute, 8 in 10 consumers are willing to pay more for a better customer experience. Their report on the disconnected customer finds that consumers are frustrated by organizations that don’t listen to their feedback or reward their loyalty. In fact, the majority of consumers are willing to increase their spend with an organization in return for a better experience.

Streamline Complexities of Digital Identity Verification 

Insurers are having to invest in technology to remain competitive, and many are looking to identity authentication. However, most identity authentication processes require consumers to jump through multiple hoops, which creates an off-putting customer experience. But delivering a frictionless customer experience is a delicate balancing act for insurers. Therefore, the key is knowing which consumer to slow down and which to offer a “fast pass.”

Taking Digital Identity Authentication to the Next Level

Identity authentication leverages a variety of technologies. These include AI, blockchain, image analytics, machine learning and others to perform two tasks:

  • ID verification
  • Identity authentication

Historically, insurers have leveraged KBA (knowledge base authentication) key pieces of data, specific to the individual, to verify an individual’s identity. In fact, insurance is among several industries that is taking identity authentication to the next level by leveraging KYC (know your customer). Specifically, KYC is the process of a business verifying the identity of its clients and assessing potential risks. It also allows companies to protect themselves by ensuring that they are doing business legally and with legitimate entities.

For more information on identity authentication, see our Instatouch Suite for related information, video and webinars.

 

[1] Digital Transformation in Insurance (Celent report)  https://www.celent.com/insights/127860288

[2] The Disconnected Customer: What digital customer experience leaders teach us about reconnecting with customers (CapGemini report) https://www.capgemini.com/news/8-in-10-consumers-willing-to-pay-more-for-a-better-customer-experience-as-big-business-falls/#

Kevin Leslie

Kevin Leslie

Vertical Marketing Leader

Kevin Leslie is the Insurance Strategic Marketing Officer at Equifax. He possesses a strong curiosity and desire to help insurers transform through the effective use of data, analytics and insights. Kevin has spent the majority of his career in the Insurance and Telecommunication industries, gaining expertise in the a[...]