Insurance serves a noble purpose: to protect individuals & businesses and their property, liability, and financial obligations. At their roots, many of the large, well-known carriers today began by serving the distinctive needs of businesses and individuals who could not find coverage elsewhere. Rural residents paying city insurance rates, government employee affinities, and experiences tailored for military families are just a few examples of these beginnings.
As the world becomes more mobile and digital, customers expect a seamless and efficient experience. Companies like Amazon, Apple, and Google have innovated the path for customer experience and integration, but the experience standards set by these CX leaders transcend all industries. Consumers simply do not downgrade their expectations when dealing with other industries.
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Product-centric models that have been built to support carrier operations often result in a fragmented, difficult-to-navigate customer experience. With the rise of customer experience expectations, insurers must make the purchase, use, and other interactions faster and more personal through digital tools.
The market evidence is clear: A 2020 study in the life insurance industry indicated that knowing the customer and tailoring the next best offer/action can lead to a reduction in customer acquisition costs by up to 50%, generation of 5-10% of new premiums, and reduced customer churn by up to 30%.
Firms that demonstrate empathetic knowledge of their consumers and deliver tailored, real-time solutions will build on this noble purpose to gain competitive advantages in a digital operating environment.