A study by Future Processing and Censuswide found that about one-third of UK consumers feel insurance companies are not improving customer experience, with Artificial Intelligence (AI) being a key priority for enhancement.
The findings of the research indicate that insurance companies can benefit from integrating AI technology into their operations to better serve their customers.
AI, particularly in the form of Conversational AI, has the potential to enrich the customer journey, increase engagement, and expedite claims processing.
Surprisingly, however, the study uncovered that 85% of those surveyed perceive insurance companies as not adequately considering AI to enhance overall customer experience.
The research also highlighted the importance of adopting a customer-centric model and demonstrating the value of customer-shared data as ways for insurance companies to improve their service quality. Providing a superior customer experience is crucial for elevating a brand from good to great.
With the power of social media amplifying the consequences of subpar service, even a single mishandled claim or captured mistake can quickly escalate into a damaging crisis for an insurance company’s reputation. Therefore, prioritising the needs of customers becomes imperative for insurers.
McKinsey, a renowned global management consulting firm, has conducted industry-wide research that supports the significance of exceptional customer experience.
According to their findings, US auto insurance carriers that consistently provide customers with the best-in-class experiences have witnessed two to four times more growth in new business and approximately 30% higher profitability compared to firms with inconsistent customer experiences.
The reluctance of insurance companies to adapt to evolving customer expectations remains a question worth exploring. Piotr Piekos, Future Processing’s Insurance Practice Lead, emphasised that delivering a superior customer experience goes beyond the development of a mobile app or increasing call center staff.
It requires substantial investment, ongoing improvement, and collaboration across various customer channels and business functions, from claims handling to underwriting. By embracing agility in their services, insurance companies can better address the diverse needs of customers, leveraging AI-powered claims handling, tailored policies, and streamlined customer journeys to ultimately boost their profits.
