Speaking on a panel at the Global Insurtech Summit in London last week, our CEO Richard Hartley discussed how data and technology are enabling customer centricity and improving user experiences in insurance.
The panel, titled “Defining The Customer Journey In Insurance”, was moderated by fintech entrepreneur Dorota Zimnoch. Other panelists included Nicola Millard, Head of Customer Insight and Futures at BT Global Services, Clairy Moraitou, Head of Global Customer Insights at Zurich, and Lizzy Lubczanski, VP of Behavioural Research Manager, Group Underwriting at Swiss Re.
What does customer centricity mean in insurance?
The panel agreed that to be truly customer-centric, insurers need to listen to their customers, identify and understand what their pain points are, and solve them quickly. The panel discussed current trends in consumer expectations when purchasing insurance, identifying four main drivers for customer satisfaction:
– Effortless and easy to navigate
– Interactions feel trustworthy and credible
– Perceived control over the experience
– Perceived value for money
“We spend a lot of time learning about the challenges our customers are facing, and we’ve found that it’s important to think about our customers’ customer. A huge priority for insurers right now is improving service standards. Insurance is a commodity product, and consumers want to buy it effortlessly in a cost-effective way relative to the underlying risk, ” said Richard Hartley.
“Cytora focuses on solving this problem for insurers by enabling them to underwrite quickly and accurately at a fraction of the cost, so they can deliver fairer prices and faster service to their customers.”
What will the customer journey in insurance look like in the future?
Insurance will become personalised and easier to purchase. As insurers continue to invest in data and analytics to build a more granular and holistic view of each customer, they’ll be able to offer highly personalised pricing and products. This will lead to more intuitive user experiences that require less information from the customer to get to an accurate quote.
The cost of buying insurance will decrease. As underwriting becomes more programmatic, frictional costs for insurers will decrease, enabling them to pass savings on to the end customer.
Insurance will become a lifestyle product. The market is shifting towards customer-focused products that holistically tackle specific issues and events for consumers, bundling multiple offerings into a single product. This could mean consumers are able to manage their banking and insurance in one place.
What is the biggest barrier to customer centricity in insurance today?
Panelists identified organisational structure, a lack of customer touch points, and overly complex distribution models as barriers to customer centricity.
“Insurers don’t interact with customers often, maybe once a year which makes it really hard for them to experiment with customers to see what works, brokers tend to customer interactions so insurers miss out on these touchpoints completely,” said Richard Hartley.