As digital transformation takes the business world by the horns, the insurance industry has some work to do.
Customer support is one of the weakest areas of the insurance industry due to its reliance on phone support as a primary support channel. Waiting on hold for 20+ minutes to speak with a provider doesn’t fit the preferences of modern consumers. Like every industry, insurance companies are experiencing a major disruption in their business operations.
Insurtech is revolutionizing the insurance industry and transforming CX for the better. Sitting at the intersection of insurance and technology, the goal of insurtech is to help insurance companies operate in a more efficient, profitable, and streamlined fashion. There are over 300 insurtech startups in the U.S. and insurance companies are beginning to see them as partners instead of competitors.
InsurTech Startups Are CX Warriors
Insurance companies have realized that building their own technology is a difficult and timely task. Since insurtech companies are equipped with innovative technologies, this provides them the power to jump-start customer-centric strategies and enhance antiquated models.
The insurance industry is being revolutionized by insurtech in the same way that the finance industry was revolutionized by fintech. For example, insurtech company Lemonade uses AI to provide new customers with custom policies in just 90 seconds instead of 9 minutes. Perhaps most importantly, it’s also helping insurers to identify fraud, which is currently a $40 billion dollar problem in the industry.
With insurtech, customers can communicate with chatbots to get answers quickly without having to wait on hold for several minutes on end. This is a gamechanger for the insurance industry and is going a long way towards improving CX. Chatbots are so efficient that they can outsell human employees by four times and incur almost zero marginal costs.
3 CX Trends in InsurTech
As insurers begin to launch their new CX strategies, here are 3 insurtech trends that are driving the industry forward in 2020:
#1 Big data
Big data refers to extremely large data sets that can be analyzed computationally to reveal patterns, trends, and associations. Insurtech companies are using big data to help insurance companies with underwriting, rating, marketing, claim settlement, and fraud detection. In fact, 74% of insurance companies in one survey reported that the use of big data and analytics helped to provide a competitive advantage. How will you incorporate big data in your 2020 CX strategy?
Robotic process automation (RPA) is strategically used by insurtech companies to help automate repetitive tasks such as calculations, queries, and the maintenance of records and transactions. When insurance companies allow insurtech companies to help them integrate RPA technology, they become more efficient and rely less on agents to perform repetitive tasks. RPA can free up about 20-30% of capacity at the enterprise level while reducing operational risk and improving customer experience.
#3 Real-time Interaction and Collaboration
Insurtech is making it possible for insurance customers to be able to interact with their providers in real-time through video conferencing and digital file-sharing. This increases collaboration and streamlines the insurance process. Have you thought about how to integrate real-time interactions in your channel strategy?
Insurtech is quickly reshaping the insurance industry by implementing big data, RPA, and real-time interactions and collaborations between insurers and their customers. These trends are helping to cut costs, increase profit margins, and streamline business processes for insurers while dramatically improving CX.
Interested in rethinking your approach to CX in 2020? Drop me a note here and let’s chat: Aaron.Fischer@taskus.com.