Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

Customer engagement key to driving value in insurance

Helen Murray, Chief Customer Solutions Officer at Webhelp UK, argues customer engagement is key to turning insurance from a community into a valued service. This article was also published on Post Online.

The relentless growth of the aggregator market has changed the game for insurers. With consumers now able to compare policies at the click of a mouse, you’d be forgiven for assuming offering the lowest price was the only way for providers to remain competitive.

However recent research suggests otherwise. According to a survey by from 1 to 1 media and KBM group, customers are less likely to defect to a competitor offering a lower price if they feel ‘engaged’ by their insurer.

So how can insurers develop this sense of engagement and ensure customer loyalty at the point of renewal?  The answer is really quite simple – clear, consistent and compelling communications at every stage of the customer lifecycle.

From the start insurers can foster this sense of engagement by being transparent about exactly what a product does, and doesn’t. This builds trust which can be developed by being clear on how and when premiums will be collected, and remaining on hand to respond to sign-up queries.

Once on board customers should also be given regular updates, tailored to their likely product life-stage requirements. Not only does this develop trust, but it also creates valuable cross-selling opportunities.

Engagement can also be promoted by ensuring queries are resolved promptly with helpful advice. While customers’ accounts should be reviewed at the point of renewal and timely reminders, identifying potential savings of more appropriate products, should be issued.

Most importantly, customers derive no greater sense of engagement than from an insurer that resolves their claim promptly, with a clear explanation of the process and the eventual decision.

Insurers have already devoted considerable efforts to operating with clarity, transparency and developing trust with their customers, but there remain significant opportunities to improve customer experience, particularly through digital and self-service channels.

Visiting a general insurer in Europe recently, I was struck by the impact advanced digital channels, including webchat, mobile and social media, had had in reducing running costs to 20% of annual premium income, while boosting its Net Promoter (NPS) and customer satisfaction scores (CSat) to the highest in its national market.

Together with a customer churn rate well below the industry average at just 20%, this is clear evidence, if any were needed, that efficiency and customer engagement can go hand in hand.

And the UK industry is starting to take this seriously. The 2013 Global Contact Centre Benchmarking Report suggests the UK’s top performing insurance providers already handle 35% of customer interactions by digital channels, while 11% have integrated social media into customer service delivery.

However, the bottom line is it doesn’t matter how many communications channels an insurer provides for customers, unless the experience delivered across them is consistent, compelling and designed to encourage that crucial sense of ‘engagement’.

Achieving this means understanding exactly which elements of the existing customer experience work, and which don’t.

This can be a lot easier than it sounds – all it takes is the simple application of analytics to the customer journey. From ensuring information is consistent across channels to reviewing how efficiently and satisfactorily claims are resolved, analysis can identify where customer expectations are not being met allowing insurers to plug any gaps.

There are those who believe the insurance industry is irretrievably commoditised.  I’m not among them.  By striving for customer engagement, I believe insurance providers can turn ‘a commodity’ into ‘a valued service’ customers will almost certainly be prepared to pay a little more for.

Our latest white paper Insure Against Loss examines in detail the opportunities in the insurance sector. In this paper we will explore how delivering an exceptional customer experience can increase customer engagement levels and reduce customer churn.

Get in touch with Helen on LinkedIn with your comments or questions.


admin
Article by: admin

News & Insights

Recommended for you
Solution Designer
Service Provider
Technology Enabler
Blog
Why Employee Recognition Means So Much

At Webhelp we are passionate about our people and their contribution to the company. Recognising our teams and ensuring they know just how valued they are is a core value of Webhelp. There are many companies that talk about employee recognition because it sounds great on their website, but I believe that in this organisation we really do walk the walk when it comes to all of our values! I...

News
Webhelp and SKY make it a hat trick of awards

London, UK, 30/11/2018 Global customer experience expert, Webhelp, and leading telecommunications provider, Sky, were celebrating again after taking home the award for Best Outsourced Contact Centre at the European Contact Centre and Customer Service Awards, which took place in London on 27th...

News
WEBHELP AND VODAFONE UK WIN ‘EXCELLENCE IN BUSINESS OUTSOURCING COLLABORATION’ AWARD AT 2018 CCA AWARDS

London, UK, 29/11/2018 Global customer experience expert, Webhelp, and leading telecommunication company, Vodafone UK, scooped up the award for Excellence in Business Outsourcing Collaboration at the CCA Excellence Awards, held at the Hilton in Glasgow, Nov 15th. Having successfully worked...

Whitepaper
B2B Marketplaces are blossoming

Following our publication last year of " The Spring of B2B Marketplaces ": it is time to look back and to answer these questions: has there been some movement in the market? Have B2B players evolved in their marketplace business models? Is launching a new market observatory worthwhile? The answers...

Case Studies
Webhelp People Analytics

...

×

Webhelp Cookies Preference Centre

Strictly Necessary Cookies
The website requires the use of cookies for essential functional requirements and these are outlined in the cookies policy.

Enhanced Functional Cookies
Some features of this website use services provided by third parties websites. These features use cookies to implement their services on this website and may collect data about your visit to help them optimize their functionality. The Webhelp cookies policy outlines the cookies used by these services.

We have links to social networking such as Twitter, Facebook and LinkedIn.
These websites are third party sites. We do not place cookies on their behalf, and do not have control over the way they collect or use your data.
We encourage you to read more about their policies:
Twitter
LinkedIn
Facebook