Survey data shows insurance consumers are clamoring for better digital experiences

better digital insurance experiences

The digital landscape is now so all-encompassing that most consumers expect a digital experience in everything they do. That’s certainly true when it comes to insurance, as evidenced by the findings of our recent consumer survey. Based on responses from more than 2,000 individuals in the United States, the 2020 DXC Insurance Survey Report presents consumers’ views on insurance and how they interact with those providing coverage. I’d like to discuss the different elements of the survey with you over the coming weeks, homing in on key findings, and sharing my perspective as to what they mean to carriers and brokers, and to the industry in general.

First, it’s important to recognize that the insurance industry has been talking about digital and the importance of investing in digital experiences for at least 10 years and has developed a solid body of work on digital innovation over the last 5 years.

Without a doubt, insurers are investing in digital technologies, but many have failed to meet evolving consumer expectations by providing a quality digital experience. Rather than throwing more money at internally focused digital solutions, insurers would do well to step back, look at where and how they have invested, and calibrate their future investments to elevate the digital experience for consumers and differentiate themselves in the market.

Some interesting findings of the survey suggest that this particular issue will be even more critical going forward:

  • 42% of consumers said that more personalized service was the top “technology factor” most likely to convince them to stay with their current insurer.
  • 54% of consumers overall (62% of 18 to 44 years of age and 47% of those 45 and older) say that their insurer’s app must be as easy as consumer apps such as Facebook.
  • 60% of younger consumers and 30% of consumers 45 and older would be willing to use chatbots to speed up the application or claims processes.

To capitalize on this clear consumer interest in a more digital insurance experience, an insurer should reorganize its mindset and operations by genuinely placing the consumer at the center. By so doing, its digital investments will translate into better relationships with consumers and more business. Other benefits include staff productivity and process efficiencies. Ultimately, a redefined digital customer experience makes it easier and friendlier to conduct business, elevating the insurer’s brand to a trusted standard-bearer in this new era of insurer-policyholder relationships.

So, what do consumers want and expect and what can insurers do to meet those expectations? One important point that the survey findings highlight is that the majority of respondents are looking for dual benefits from their insurers’ digital services: an improved service experience as well as value or some sort of financial benefit in exchange for data.

For example, 87% of consumers said they would be willing to share information for discounts. So, one way that insurers could meet customers’ expectations, while learning more about them, could be through a discounted renewal program or other related benefits, such as coupons for local health and wellness services, in exchange for more information about the consumer.

Offering such rewards is also more financially feasible for those insurers who do engage with customers through digital services. For example, having a digital service through which customers can make a claim and follow up on it not only delivers greater customer satisfaction, but it can also save companies time and money from a call center support perspective. The potential savings are most pronounced with consumers age 44 and under, with 60% saying they are comfortable using chatbots to apply for insurance or make claims.

Redirecting investments to reimagine and deliver a relevant customer journey and engaging experience

To deliver these valuable customer outcomes, insurers will need to modernize their legacy operations, while embracing robotic process automation, artificial intelligence and machine learning. These investments should be focused on reimagining the right customer journeys and experience touchpoints. When insurers begin deploying digital in this way — to genuinely advance the consumer experience —consumers will reward them with loyalty.

Sudhar Krishnamachary headshotSudhar Krishnamachary is a vice president in DXC Technology’s Insurance business and leads the global sales and enablement functions driving sales growth of the software & services portfolio, sales enablement, go-to-market messaging and analyst/media relations. He brings 25 years of insurance industry experience, serving in market-facing leadership roles both on the carrier side and consulting side.

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