Why insurers should prioritize multi-channel engagement

Editor's note: For part two of this series, click here.

The emergence of insurtechs and parallel trends in other consumer-facing industries has insurance customers demanding a higher standard of digital engagement with simplified, user-friendly solutions throughout the customer value chain. Given these evolving customer demands, both commercial and personal-line firms are seeing an increased need for multi-channel customer engagement.

Multi-channel engagement enables customers to interact with their insurer seamlessly through various channels, based on their preferences – digital, call center and face-to-face. For example, you can start to log a claim or mid-term adjustment online and then request an agent call you back at a chosen time. Insurers are making progress in this area, but there is a ways to go, as it requires a clear understanding of the moments that matter to their different customer segments, and end-to-end processes with good technology integration.

Insurers must prioritize the implementation of these digital tools on the front- and back-ends and use them to deeply understand customer expectations and how they change, so as to determine the best way to use the technology to deliver products. Examples of such tools include Salty, which uses artificial intelligence and machine learning to analyze multiple data sources for information about the buyer and the purchase, to sort through multiple carriers and offer the right insurance. Or Claimspace, a collaboration tool that enables insurers to create personalized and flexible digital experiences both for customers and assorted external stakeholder groups.

The J.D. Power 2021 U.S. Insurance Digital Experience Study showed mobile app usage is up 26% since last year. For personal insurance, engaging customers across multiple channels, meeting them wherever is most convenient for them, has been a fundamental truism for some time. But the true advance and differentiating factor now is being able to create a seamless experience across all channels and policy types. Previously, different lines of business, such as home, auto and collections in the personal space, would have different client journeys, portals and servicing models. All leading to a disjointed client experience.

Now, leading insurers are able to not only link these different products together under one unifying experience but also utilize actions taken in one area of the business to inform other areas. In addition, the ability to provide risk mitigation advice proactively when customers most need it and through the most appropriate channel will be critical to continue delivering value and staying top of mind.

For example, some insurers in California and other western states are using risk characteristics of properties to proactively inform policyholders of increased wildfire risk and ways to mitigate that, all through mobile applications and other user-chosen communication methods. Where previously this advice would have required an in-person inspection to communicate, carriers can now proactively provide value to clients while also protecting their loss ratio.

User-friendliness will go a long way toward the perception that the insurer is providing value.

In the commercial insurance world, multi-channel customer engagement will take on many forms. Carriers will need to deploy portals and engagement channels that can bring both the broker and the insured together in one conversation. This will provide a direct line of communication to insurers and create a more seamless conversation between the multiple parties. Brokers will also need their own, separate interaction channel with carriers and reinsurers that allows an easier process to submit, quote, bind and service multiple clients within one portal. Carriers that dramatically increase the ease of doing business for a broker will win many times over in the market.

Given the complexity and breadth of commercial risks, providing a “one-stop shop” for clients and brokers to view all policies, claims, especially across multiple lines of business, will be challenging. This type of capability not only requires connectivity and data syncing across multiple products, but also multiple geographies and potentially corporate entities. However, it is necessary as commercial clients are beginning to demand the same experience they’ve had on the personal insurance side.

All insurers will need to increasingly tailor their communication channels to customer preferences and enable them to provide information about claims in new ways while proactively communicating at the right touchpoints. At the next level, in line with digital transformation, analytics and algorithms will anticipate questions and send updates through the identified preferred communication channels.

Additional outsourced or homegrown algorithms are being developed to seamlessly interact with customers and will inevitably change customer response models. These tools can also help learn more about customers and allow for deeper relationships with clients that are even more beneficial in the long run.

In addition, the need for digitally enabled risk prevention is higher than ever before. Digital literacy for carriers, a focus on customer relationship skills and client-focused project management skills will be critical when rolling out customer engagement models for the future. In turn, recruitment practices will change to hire effective tech and customer engagement talent. The incumbents that can use data to better understand their target segments and shift from the traditional mindset to user first and embrace the opportunity to build their organization’s capabilities and offer more simple, customized user-friendly solutions will be able to remain competitive and successful in the future.