Building a Customer Centric Insurance Company
Analytics and customer lifecycle management applications help improve the consumer experience.
Today’s consumers have a world wide web of choices. Those choices are shifting the balance of power from the insurer to the insured. If one company cannot meet consumer demand — for product, for price, for service, or for the ability to communicate and buy via mobile devices and other channels — shoppers move on. This is as true for insurance as it is for designer clothing and high-end electronics. Next Generation insurers will succeed by fundamentally restructuring the way they do business. They will move from policy-centric to customer-centric approaches for solicitation, up-selling, cross-selling and customer retention.
Make sure your organization is ready to become a Next Generation insurer by engaging customers on customers’ terms. Many companies are using technology to help in their transformation. According to the SMA 2014 Ecosystem Research Report, nearly two-thirds of insurers are increasing spending on information technology implementing major projects to “improve the customer experience, modernize their core systems, and gain more insight through analytics.”1 Projects undertaken vary according to type of policies sold. For example, in life and annuity, insurers are investing in customer relationship management tools to improve the consumer experience. These tools help insurers comply with the mandates of state departments of insurance. In personal and commercial property and casualty, insurers use analytics to mine data for business insight. They then implement a strategy of blended physical and digital communications — including mobile communications — to comply with regulatory requirements as well as improve customer satisfaction.
Carriers are deploying customer lifecycle management applications, predictive analytics and risk-correlation software to evolve into more customer-centric organizations. These software solutions disassemble the data silos that keep businesses from obtaining a comprehensive view of their clients and prospects. They help insurers tailor offerings to more closely match the needs of clients in specific risk categories. Plus, they help companies produce targeted, multi-channel communications for more meaningful customer engagement.
Next generation insurers require customer engagement solutions which enable organizations to deliver relevant and engaging interactions across the customer lifecycle, thus increasing real customer lifetime value.
Pitney Bowes helps marketing, operations, customer service and customer experience executives deliver a measureable improvement in customer engagement with a suite of solutions that dynamically guides personalized interactions across every channel.
Unlocking siloed data
Siloed, legacy systems dominate the insurance industry. Unfortunately, these systems obstruct communications among insurance companies, the agent or broker, and the insured. Silos often hinder an organization’s ability to view information stored in different lines of business or in recently acquired companies. They prevent the type of holistic, enterprise-wide view of the customer-insurer relationship that can enable insurers to target the right prospects with the right offers via the customer’s preferred communications channel (mail, email, landline, mobile phone or social media).
For example, a large insurer offering personal and commercial property and casualty (P&C) lines likely has different applications for customer relationship management, policy administration and claims correspondence for each line of business. These applications do not communicate with each other. Important customer data is therefore hidden within these siloed programs, veiling employees’ view of the customer’s true relationship with the insurer.
Improve customer engagement by targeting communications.
To improve customer engagement, insurance companies must implement technological capabilities that orchestrate content, formats and delivery channels. These capabilities should accommodate customer preferences and align with well-defined business processes if they are to help insurance companies reduce costs and increase revenue.
All of the aforementioned capabilities can help insurance companies target the right solicitations to the right customer. Phone conversations and agent interactions can then be properly augmented by:
-Customer service emails
-Online capabilities, including premium-payment capabilities
-Social media notifications
Leveraging location to improve customer engagement
The earlier section “Unlocking siloed data” presented a scenario in which an insurance company incorrectly canceled a personal automobile policy, risking its long-term, profitable commercial relationship with the insured. Canceling the wrong policy is one problem. Offering new policies to the wrong people is another. This situation, which can damage the reputation of those organizations trying to become more customer-centric, can be alleviated by location analysis capabilities.
Consistent communications helps strengthen your brand
Brand consistency is significant to customer communications. No matter which channel the insurance company speaks, it must communicate with a single “voice.” Currently, insurance company brand consistency is often undermined by lack of coordination among lines of business or among departmental divisions initiating the communications. For example, letterhead, invoices, solicitation emails, marketing materials, policies, statements and even welcome kits may all have very different looks, with no consistent use of corporate logos, images and other brand elements. Communications may also be unsynchronized among departments. Marketing may advertise a certain offer but, when prospects call in, call center representatives have no knowledge of it or cannot retrieve the offer exactly as presented.
Power your customer engagement modernizing insurance systems to Increase policyholder lifetime value. Learn more.
You May Also Like
Engaging content enriches the customer experience and builds a relationship with the policyholder in a way that traditional communications never could.Learn More
By staying relevant and present is crucial to keeping customers engaged. By engaging customers with individual messages that are relevant to their needs and situations, insurers can create a relationship that lasts and guarantee more revenue in the future… and eventually less churn.Learn More