Mapping Digital Onboarding Experiences In Insurance to Customer Age

Mapping Digital Onboarding Experiences In Insurance to Customer Age

Digital Onboarding

Last time the Insurance Sector had projected a negative growth in Gross Written Premium (GWP) was in 2009-2010, right after the global financial crisis. There simply wasn’t enough trust left in consumers to go for renewals and subscriptions. Insurance Customers today are heading down the same road. Now having witnessed two world level economic crises (including COVID 19), the millennials want more from their insurance providers to take the industry back to normal.

Over the last decade, with the growth of digital delivery methods, the industry managed to significantly improve global claims processing index. Electronic IDs, Online Banking, E-Ticketing, Digital Database Management; assisted a great deal in serving the changing landscape of consumer demands.

However, growth in Digital Claims Processing did not convert into a rise in consumerism or insurance sales. Lack of Digital Onboarding Solutions in the Insurance Sector stagnated the growth of renewals at ~4.0% (annual-global, Forester 2019) during the last 5 years.

Millennials (born 1981-1996) which have been the largest market of Insurance Providers in this time yearned for better onboarding experiences compared to claims cycles.

32% Insurance Customers between age 18 and 33 abandoned their onboarding process on account of repeated document requests and branch dependent operations (ID submissions, contract signatures, orientation etc.) – Paypers Report 2020, Deloitte & Signicat.

Surrounded by hyper personalization and product based solutions, especially in retail experiences and financial services, young decision makers are shifting market forces towards a pure Digital Onboarding Culture.

It is but only the job of modern Insurance Companies to replicate the Customer Experiences in sync with their needs.

Age Sensitive Digital Onboarding Trends in Insurance

Onboarding technologies have long been subject to manual intervention, on-premise databases, I/O (input-output) dependent customer communications. Limitations of such technologies in delivering fast, hassle free and enlightening customer experiences have directly reflected on sales funnels.

For example, a serious 92% customers have been dissatisfied with their Onboarding process (KYC and Identity Verification) and multiple agent interactions for documents in 2019 (Axell, May 2020).

Customers below the half-century mark are already pinning marketing and service hopes on digital solutions which offer more convenience and speed. Digital First Onboarding received more research and purchase queries compared to agents and branches in FY 2019-20 (Capgemini, World Insurance Report 2020).

62% of the millennials surveyed by Allianz (May 2020) said they’d want their insurer’s app to be as functional and engaging as Facebook or Instagram. Another 36% dereputed their insurance providers compared to large Fintech Firms for lack of clarity in policy conditions and onboarding communications.

Young First Time Customers like to have control over their usage patterns of services today. Customer Experiences in Telecommunications, Utilities, Healthcare find more takers in usage-based experiences compared to traditional one-way experiences. Market for experience-led usage-based Insurance Services, increased 6 times more than traditional insurance services in the last year (Capgemini 2020).

As more Insurance Customers incline towards digitally initiated interactions, companies are unable to offer them convenient digital experiences. Customers across Life Insurance (21%) and P&C Insurance (12%) businesses, continue to face barriers like lack of 24×7 access, high turnaround time, low switching options and insecure channels.

Providers and Aggergators need to introduce Integrated Omni Channel Digital Onboarding Solutions in the markets, to map dynamic consumer behaviours into age-specific customer journeys.

Digital Customer Communications Management

Create an Interactive Mobile First Digital Onboarding Culture for Insurance

Companies must use this demand of early stage insurance customers for digital onboarding options, to channelize digital transformation efforts across other services as well.

Digital Customer Communications Management (CCM) powered by features like E-Signatures, KYC Automation, Pre-Filled Forms can revitalize onboarding as well as regtech (regulatory technology) and claims processing for insurance providers.

SaaS based CCM Solutions

By employing faster and integrated SaaS based CCM solutions, insurance providers and aggregators can keep traditional legacies from blindsiding customer journeys.

More visibility of customer data across functions can help minimize the lead time for approvals and compliance processes. Consolidated CCM functions and automated service levels can also control infrastructure usage load, decreasing overall cost to ownership.

Services like Chatbots for onboarding, which customers (aged 18-44) are more than willing to use (57%, DXC Technology, USA Survey 2020); or web-based applications (WBAs) can balance the need between self-service and guided insurance onboarding.

As customers are no longer limited to one platform or device, insurance companies must ensure easy switching across platforms for them. Leading insurance companies are thus migrating their customer journeys to unified communications hubs which are integrated at a granular level with core insurance offerings to ensure cross-channel consistency.

Insurance is no longer just about underwriting and claims experiences, it has evolved into a multi-stage customer journey starting with an immersive Onboarding and Orientation. To help young customers and newly insured; providers must employ any and all means possible to streamline their experiences and accommodate their demands. Only then will the Insurance Industry be able to sustain through the new normal.

To know more about how Customer Communications Management Solutions can help your insurance organization renewals and customer satisfaction, connect with FCI Experts at info@fci-ccm.com and book your free demo of our service offerings at www.fci-ccm.com/book-a-demo.php.