In a new world that has been drastically affected by a pandemic such as COVID-19, customer demands are rapidly changing across all industries. The insurance industry is not alien to new demands and expectations brought forward by a rapidly evolving customer base. Insurers all across the world understand the need to change their customer proposition and to adapt to new demands in a digital era.
Within the industry, growth has become contingent upon satisfying an ever-growing customer base. While the whole world was witnessing digital disruption and embracing technologically-led business solutions, the advent of coronavirus sped up the process of providing quick and real-time solutions to customers while sustaining operations like never before. Combining insurance and technology to tackle the pandemic is one of the core solutions to the current scenario. Let’s look at some steps to new-age success.
Being truly customer-centric:
At a time when healthcare is the need of the hour and insurance policies are on the rise, being customer-focused is the primary goal for all insurers. This can be achieved through a number of ways. These include providing personalized policies on a case-to-case basis, presenting real-time and flexible inclusions in the policies due to the unpredictable circumstances that customers are facing, and offering quick and efficient support with respect to claims.
Implementing online applications and tools like dedicated servicing apps and chatbots, and encouraging customers to use them for effective communication will lead to a better customer satisfaction rate and will also lessen the burden on call center agents.
New practices in customer acquisition:
Insurance policies have been long drawn in nature since the inception of the insurance industry. However, with the presence of COVID-19 and the rise in unpredictability, customers need short-term solutions for basic insurance purposes. Lower-cost and short-term health policies are on the rise while distracted and anxious customers might not look to purchase additional coverages that aren’t a part of the core policy. These demands can be met through the implementation of tailor-made policies provided in an on-the-go environment based on each customer’s needs.
Providing automated payment systems to drive collection and reducing service volumes for customers will lead to a quick and efficient process of policy delivery and maintenance.
In an increasingly competitive environment where every quarter gives birth to new insurance players in the market, customer retention is another aspect that needs to be focused upon. Having constant communication with existing customers and providing subsided policy rates to furloughed customers could help meet customer demands and increase the retention rate. At a time like this, customers would be rapidly looking for COVID-19 related coverages, and providing comprehensive coverages would help meet customer requirements.
Launching campaigns to remind customers of available policies, benefits, and services is another way to decrease the annual churn rate and meet customer demands even at a time of crisis.
Employing these practices will not only meet rapidly evolving customer demands in a post-pandemic world but will also help in increasing customer acquisition as well as customer retention rates.