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Navigating the New Normal: Digital Customer Engagement in P&C Insurance

Feb 28, 2024
Digital Customer Engagement

Quick summary:

The shift towards digital platforms is transforming customer expectations in the P&C insurance industry. In this blog, we will discuss the importance of personalized digital experiences, the role of AI in enhancing customer service, and what carriers should do in this regard.

Introduction

The digital shift in the P&C insurance industry continues to accelerate, even in 2024. As insurers strive to improve the customer experience, advanced technologies such as AI, ML, and BI & analytics are becoming even more prevalent.

This blog will talk about evolving consumer expectations and the potential impacts and opportunities they bring for P&C insurers.

What do the stats say?

As per a report by Grand View Research, the global insurtech market size is relatively small and is expected to grow at a rate of 51.7% (CAGR) by 2030. Customers are now aware that they have options, and if their traditional providers can’t give them a seamless, personalized user experience, they are more likely to switch to other providers providing digital services.

US Insurtech Market

The Digital Shift

After having digital experiences with other industries, policyholders now expect a better customer experience from their insurance companies as well.

The good news is that leading carriers have begun to crack the code on digital, and they are focusing on establishing a set of practices that could pave the way for industry-wide improvements. With P&C Insurance’s digital transformation, insurance companies can build stronger customer relationships based on trust, transparency, and collaborative risk management. It’s time insurers embrace opportunities to create more personalized customer experiences throughout the policy lifecycle. 

A few examples of property intelligence empowering personalization: 

  • Pre-filled curated property data reduces the need to fill out lengthy questionnaires and can deliver quick and accurate quotes.
  • Leveraging computer vision models to analyze property conditions during new business underwriting, identifying potential problems, and working with customers to proactively mitigate future risks.
  • Digital tools can make it easy for customers to exchange information with their insurance provider, receive frequent updates on progress, and ask questions along the way.

The Role of AI in Enhancing CX

With respect to customer interactions, AI can aid in many aspects of various insurance processes.

  1. Customer data analysis – AI can analyze data, including historical claims data and customer information, to assess risks more accurately. This allows insurers to pinpoint potential losses, ensuring greater stability across the industry.
  2. Evaluate applicant’s risk profile – AI can evaluate applicants’ risk profiles and determine appropriate coverage & pricing that better serve their needs, helping insurers improve the underwriting process.
  3. Automate claims intake – AI can automate various insurance processes – claims intake, document verification, etc., limiting the need for manual inspections and thereby reducing wait times.
  4. Identify fraudulent claims – AI can analyze patterns and anomalies in claims data, thereby identifying fraudulent activities and staged accidents. This will ultimately benefit the insurance customer, who will see a substantial reduction in premium levels.
  5. Customer Support – AI-powered chatbots and virtual assistants can provide 24/7 customer support, answering common queries and helping with policy inquiries. They can also assist in claims reporting and status updates.

Moreover, AI can create personalized insurance policies and pricing based on individual customer data, driving habits, health metrics, and other factors. This will improve customer satisfaction and attract new customers.

Where to Start?

The shifting customer expectations foster the emergence of new and diverse channel options throughout the value chain; comparison sites, embedded insurance, and direct distribution are gaining traction.

According to Statista, about 50% of U.S. insurance users are already purchasing online, which is expected to rise. Insurance companies should recognize the importance of their digital presence and shape their strategies.

To properly implement their innovation and growth plans in the digital age, carriers should focus on the following aspects:

  • Reinforce conventional channels with digital capabilities
  • Integrate new digital touchpoints that are beneficial to both customers and insurers
  • Establish clear communication with customers

In a Nutshell

Customers have become used to digital experiences with leading tech companies. And now, they expect the same when buying insurance, both online and offline. This brings a huge opportunity for P&C insurers and a lot of work to do if they fully capitalize on it.

Insurance businesses can only survive with digital tools. We at KMG put all our efforts into delivering the digital services you may need. Connect with our digital experts to know the digital strategy that best suits your business needs.

Let’s discuss your project. Connect with us.

sales@kmgus.com

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