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Focusing on the customer: subtract pain points to add value
Successful transformations start with a focus on customer needs and preferences and the elimination of friction points that can frustrate customers. That’s addition by subtraction. Consider how application processes can be made smarter and faster by chatbots that pre-fill forms and predictive analytics that streamline applications down to just a few questions. For the vast majority of policies in personal lines, underwriting should be fully automated.
In claims, chatbots can be used for timely notification of loss and status updates. Here again, automation must be the rule, because it helps to increase the speed of claims management, which is what customers value most. However, insurers must strike a balance by providing options for both intuitive self-service and access to human support when necessary. Empathetic representatives can help customers navigate complex or emotionally difficult claims.
This is the equation for successful digital transformation today: creating value by combining high degrees of efficiency via automation with differentiating, high-touch experiences that customers appreciate. Put another way, automation makes it possible to enrich offerings and personalizing experiences at scale and on a repeatable basis.
To make that vision a reality, insurers should seek to design processes that are built around customer needs and, where possible, based on direct customer inputs. Experience design teams should examine customer journeys to devise plans to optimize each interaction. Customer feedback should be captured constantly via surveys, focus groups and other means. Those inputs can help prioritize areas for improvement and identify new features that will increase customer loyalty and reduce churn.
Ideally, customers should be viewed not just as constituents but as co-creators of new solutions that reflect how people actually live and work today, such as usage-based policies and flexible coverage for workers in the gig economy. Holistic offerings that merge life and health insurance with personal coverage and retirement planning can help promote physical and financial wellness alike. There’s no doubt insurance can help people lead happier, healthier and more confident lives, but the entire business has to be transformed to deliver such outcomes.