As businesses set their sights on the new year, insurance providers must focus on elevating CX. Particularly when selling directly online. Prioritising customer needs is one of the best ways to achieve positive results, in terms of short-term financials and cultivating loyalty for longer-term financial gain.
In 2024, I expect hyper-personalisation to take centre stage, integrated with augmented and virtual reality. Compliance and regulation will also be viewed as golden opportunities for growth. Let’s explore my CX predictions for 2024.
1. Hyper-personalisation will redefine the customer experience
The distinct needs of business owners can vary significantly, and a one-size-fits-all approach often falls short of meeting diverse requirements. In 2024, businesses will continue to invest in data analytics to gain deep insights into customer preferences, behaviours and needs. This will help to understand how to personalise their approach.
Consider a customer investing in an expensive mountain bike. They could be offered insurance coverage that protects against accidental damage, theft, or loss. Alternatively, they could have a more bespoke solution for their specific situation. This could be a tailored coverage plan for sports-related accidents. Personalisation will be taken to the next level.
This not only enhances customer satisfaction but also boosts efficiency, streamlining the underwriting process and reducing the time required to tailor policies to individual requirements. This level of hyper-personalisation meets customers’ overall satisfaction levels and also fosters relationships. Overall increasing Customer Lifetime Value (CLV).
2. AR and VR will become more integrated into customer experiences
The metaverse is still trending in various industries including retail, entertainment, manufacturing and healthcare. It also presents new opportunities for insurance providers to engage with customers, offer innovative products, develop new business and risk strategies and enhance their operations. Whether it’s using avatars for customer support or offering coverage for digital assets, the metaverse will become a new frontier in user experience (UX) and risk coverage.
Recently, insurance providers have accelerated their plans to develop digital experiences that help customers to navigate problems without the need for human intervention. On the other hand, AI-driven innovations like digital experiences can enhance efficiency and accessibility, making insurance personal to businesses navigating complex coverage needs. By automating troubleshooting, insurance providers can establish pain points, respond to requests and reduce resolution time, allowing SMEs, from plumbers to dog walkers, to spend valuable time running their business.
AR and VR example cases in business
For example, a personalised immersive experience of an insurance provider’s “office” that allows customers to interact with an avatar rather than a traditional website or an app offers customers a bespoke digital experience. Through simulated “in-person” meetings, customers will receive expert support during purchase, policy servicing and claims resolution, all from the comfort of wherever they are based.
Another example is people responsible for safety protocols could immerse themselves in virtual replicas of commercial structures. Through a simulation, they could identify potential hazards, access emergency response procedures and develop risk mitigation strategies. By practising responses in a controlled virtual environment, insurance providers can minimise potential disruptions in the real-world.
However, AR and VR technology can’t fully replace the human touch in emotionally charged situations or complex decisions. Insurance providers should continue to offer human support, especially in critical moments, such as when businesses face unexpected events or need guidance to navigate intricate policy options.
The key lies in integrating technology to enhance customer experiences while preserving the human element of empathy. Striking this balance will enable insurance providers to meet the diverse needs of businesses, whether they are beauticians or therapists.
3. Compliance and regulation will be viewed as a golden opportunity
In the last decade, we’ve seen more regulations mandating that insurance providers elevate their CX standards. Such as the Financial Conduct Authority (FCA’s) Consumer Duty rules. The Duty protects customers from misinformation and empowers them to make informed financial decisions.
To meet the regulations, businesses need to review and innovate their offerings to optimise and evidence every aspect of the customer experience. Rather than viewing compliance as a burden, in 2024, insurance providers must view it as a golden opportunity for growth and improvement.
Adopting new technologies can allow insurance providers to make faster and more accurate claims, and better manage risk assessment. This ultimately benefits customers, particularly SMEs who don’t always have access to insurance products and services that meet their unique needs. However, it’s about more than just innovating policies. It’s about ensuring that the experience of the claims processes is seamless for the customer.
In accordance with compliance of the rule 9.18 of the Consumer Duty legislation, digital experiences must be clear and unambiguous. Insurance providers must have a thorough understanding of their customer’s needs. This is where extensive datasets are especially useful.
What will this say about our customers?
This data provides crucial insights into customer demographics, claims history, and market trends. Predictive analytics also help insurance providers evaluate the probability and potential cost of a policyholder filing a claim.
By analysing historical data alongside factors like economic indicators, insurance providers can pinpoint high-risk policyholders and adapt premiums accordingly. This allows insurance providers to offer competitive pricing to customers while delivering a more personalised and responsive service. For example, leveraging predictive analytics to enhance customer engagement throughout the quote and buy journey.
Adopting AR and VR and overcoming the hurdles presented by new regulations may seem daunting, but they are far from impossible. Looking forward to 2024, insurance providers have the opportunity to champion customer-centricity through the integration of new technology. This level of hyper-personalisation will not just redefine customer, specifically SME, satisfaction but foster relationships. Ultimately boosting Customer Lifetime Value across the insurance industry.