The 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 the global claims processing index. Electronic IDs, Online Banking, E-Ticketing, and 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. The 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% of Insurance Customers between ages 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 customer-centric solutions, especially in retail experiences and financial services, young decision makers are shifting market forces toward a pure Digital Onboarding Culture.
It is only the job of modern Insurance Companies to replicate the Customer Engagement 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, and I/O (input-output) dependent customer communications. Limitations of such technologies in delivering fast, hassle-free, data-driven AI services, and enlightening customer experiences have been directly reflected in sales funnels.
For example, a serious 92% of customers engaged 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% deputed 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, and Healthcare find more takers in usage-based experiences compared to traditional one-way experiences. The market for experience-led usage-based Insurance Services, increased 6 times more than traditional insurance services in the last year (Capgemini 2020).
As more CCM Insurance Customers incline toward 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 Aggregators need to introduce Integrated Omni Channel Digital Onboarding Solutions in the markets, to map dynamic consumer behaviors 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 customers for digital onboarding in Insurance, to channel digital transformation efforts across other services as well.
Digital Customer Communications Management (CCM) powered by features like E-Signatures, easy-to-use dashboard, KYC Automation, and Pre-Filled Forms can revitalize onboarding as well as RegTech (regulatory technology) and context-driven way for claims processing.
SaaS-based CCM Solutions
By employing faster and integrated SaaS-based CCM solutions, CCM 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 data-driven AI services also control infrastructure usage load, decreasing the overall cost of 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 the new normal.
To know more about how CCM Customer Centric Solutions can help your insurance organization renewals, customer satisfaction, and retention. Connect with FCI Experts at email@example.com and book your free demo of our service offerings at www.fci-ccm.com/book-a-demo.php.