How to improve customer engagement in the insurance industry

Customer experience has become vital for every industry in recent years. This is where businesses can reach a new audience, improve the existing customer journey and - ultimately - achieve more positive outcomes. In the insurance sector customer experience is a particularly substantial challenge. Existing negative relationships can be problematic and there is still a distinct lack of trust between customers and insurers. Given that it costs more to acquire new customers than to sustain existing relationships, working on customer experience is an investment that every insurer now needs to make - and can benefit from, whether the business is a big brand or a small start-up.

Improving customer engagement for insurers

The insurance industry has a lot of potential where improving customer engagement is concerned. These are just some of the ways that better relationships can be achieved.

  • Focus more on understanding what customers need. Data is crucial here, for example when it comes to customer behaviours and expectations as well as understanding the current pain points that customers have. Interacting with customers generates data that can be analysed and fed into customer personas to gain more understanding of who customers are and what they really want.
  • Personalise insurance offerings so that they are aligned with what customers need. Data has another role to play here, in providing the insight that can allow the insurance industry to provide personalised insurance products that are designed to be a perfect fit for customers. For example, the flexibility of pay-as-you-go insurance is something that many customers enjoy with usage-based premiums trending. New technology is particularly useful in designing products and solutions that cater to individual needs.
  • A more interactive approach. The insurance industry often struggles to engage with customers and this is something that can be improved with a more interactive approach, for example one that uses telematics and gamification. Telematics can collect data about individual customers, for example when it comes to driving behaviours, and this data can be used to customise car insurance policies. Integrating this with point scoring and rewards is simple gamification that encourages customers to pay attention. An element of gamification also provides a more enjoyable experience and where there are rewards involved this can help to build loyalty.
  • Digitalisation. A customer experience that has been entirely digitised tends to be frictionless and much more enjoyable for the user. Automation and ensuring that customers can interact across a range of different channels and devices is key to this approach. Omni-channel tools and engagement management provide more opportunities to interact with customers and ensure that every engagement is a positive and memorable one. As smartphones are increasingly where people research, sign documents and make payments today, digitising processes so that they are mobile-accessible can help to remove obstacles that may otherwise result in customer loss. Using a comprehensive insurance platform is another simple way to provide an end-to-end digital experience for customers that meets both expectation and need.

The insurance industry currently has a great opportunity to improve customer engagement, whether that is via the use of digitalisation, personalisation, customer insight or a more interactive approach.

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About Us

Mandon Software is a UK-based company founded in 1999. We work with customers in a wide range of insurance lines, from marine to healthcare. We are experienced in working in the Lloyd's market and pride ourselves on delivering excellent customer services at all times.