IOpportunities Coming Through Customer Engagement! (10)

Insurance Industry Spotlight
Opportunities
Coming Through
Customer
Engagement!
Presented By: Cogneesol Inc.
November, 2019

Table of Content
1)
2)
3)
Introduction
New Opportunity Era of the Insurance Industry
What Makes Customer Engagement a Top Insurance
Priority?
4)
Insurance Industry-The Customer Engagement
Evolution
5)
Customer Engagement- The Changing Curve
6)
Personalization- Where do Insurers Stand Today?
7)
8)
9)
Tips for Insurers to Connect with the Customers
Customer Engagement- The Future in the Insurance
World
Conclusion

Introduction
The importance of customer engagement holds great
significance in not only the insurance industry but in
almost every industry of the world. With the rise of
digitalization in the insurance industry, the new-age
customers have redefined what it takes to satisfy them
during the customer service.
Personalization and customer engagement are the two
pillars on which the new insurance business models are
built, especially when it comes to providing customer
service. So, let’s get started and figure out the best
approach towards enhancing the customer engagement
level.

The New Opportunity
Era of the Insurance
Industry
If we talk about the future leaders, they are the ones
who are setting a new bar when it comes to meeting
new demands of the customers and multi-channel
products of the world.
They focus on the fact that if insurers are able to know
their customers and engage them across services,
products, and channels, there will be plenty of
opportunities for the insurers to cash upon.

It is a challenge for the insurance industry to meet the
changing demographics, behaviors, and needs of the
insurance buyers as statedbelow:-
Almost 37% of households rely on rental homes,
hence they are not buying property insurance.
Under the age of 30, only 40% of adults live with
family, hence 60% of them are not opting for family
insurance.
Life insurance is owned by only 59% of adults.
Approximately 22% own both group and individual
insurance.
The amount of uninsured catastrophic losses
accounts for 70%.
Millennials who have no idea of the type of life
coverage they need to own accounts to 60%.

What Makes Customer
Engagement a Top Insurance
Priority?
In order to create a customer experience that is
memorable in every way, get into the shoes of the
customer and think of all the things that can add to
the user experience throughout the entire journey of
purchasing services and products to aid brand
awareness and loyalty.
This can be achieved with the following:-
Creation of content
Wearable devices
Marketing campaigns
Social media outreach

Insurance Industry-
Customer Engagement Evolution
In this present age of digitization and modernization,
one thing that has garnered maximum attention in
terms of business growth is nothing but customer
engagement.
If we talk about the leading e-commerce website
Amazon, the way they have provided e-commerce
experience to their customers is simply amazing, and in
fact, they have redefined the engagement levels.
This is the reason they have achieved more success than
their competitors; and the service quality benchmark
which they have set, meeting the same is not a cakewalk
for others.
Be it buying a car, an insurance policy, or a simple
grocery item; customer expectation is changing at large
owing to the customer experience Amazon has provided
to its customers.

Customer Engagement-
The Changing Curve
In the past, in the insurance sector, customer
engagement was simply limited to the settlement of a
claim. However, with the changing times, this scenario
has changed at large.
The reason behind this is nothing but the fact that the
thought process of both insures and consumers has
changed, leading to enhanced and innovative tactics
for customer engagement.
In the digital world, personal insurers are still far behind
with respect to speciality and commercial insurers when
it comes to finding innovative ways to reach and engage
with prospective and existing customers.
With the help of digital technologies like social media
and connected homes, insurers have stepped out of
their conventional shoes.

They are putting in effort and time to know their
current market position for brand building through
proper research and analysis.
The communication channel between consumers and
insurers has been streamlined significantly in the
insurance industry with the coming of the digital age.
This has led to an enhancement in the affinity and
loyalty of the customers towards the brand.

Personalization-Where do
Insurers Stand Today?
When it comes to the personalization level, it varies
greatly in different locations of the world, which is
given below:-
USA
57%
APAC
55%
Europe
38%

Tips for Insurers to
Connect with Customers
If we talk about the developed nations, millennials
literally live on their Smartphones. They have apps for
managing almost everything in their life and have
wearable devices in place that help them track their
heartbeat, the number of daily steps, hours of sleep,
the level of safe driving, along with the apps for home
security and climate.
In comparison to the older customers, these millennials
are more open when it comes to providing a chance to
the new entrants and switching providers.
If insurers want to win their loyalty, they need to work
hard for the same.They need to redefine their business
models and embrace digital platforms to satisfy the
mindset of every customer, especially the millennials.

The following tips will surely help
insurers in achieving the same:-
A
B
Connect with
Your Customers
Deal with the
New Entrants
Wisely
C
D
Become Digital &
Simple at the
Same Time
Make a Mark in
the Connected
World

A)
Connect with
Your Customers
As per a report, 35% of customers have stated that
they do not interact with their insurers even once a
year.
However, when it comes to the customers who use
connecting devices converse with their insurers almost
19 times throughout the year, which accounts for four
times the frequency of the customers who do not have
any connected devices.
These connected customers are the ones who own
more insurance products and hence are more loyal
towards their insurers.
If we throw light on the same, almost 39% of the
customers throughout the world have at least a single
connected device in place, and 72% are likely to follow
the same approach in the coming future.

B)
Deal with the New
Entrants Wisely
When it comes to considering the next purchase of the
insurance products and services, customers prefer the
insurers more than the nontraditional players.
Source: https://www.bain.com/insights/insurers_how_to_lead_in_the_new_era_of_connectivity/

Also,in the growing markets, a lot of customers prefer at
least a single tech company as compared to the primary
insurers.
This is the reason tech firms that are highly established
but new to the insurance world are being welcomed by
the customers with open arms.
Source: https://www.bain.com/insights/insurers_how_to_lead_in_the_new_era_of_connectivity/

C)
Become Digital and
Simple at the Same Time
There is no denying that the use of the digital medium is
on the rise, and millennials too prefer the new approach.
However, when it comes to the numbers, customers will
most probably use a mixture of both.
Also, amongst the customers who prefer the digital
medium, the importance of Smartphones has enhanced,
meeting the experience needs that are digital and simple
at the same time.
Source: https://www.bain.com/insights/insurers_how_to_lead_in_the_new_era_of_connectivity/

If we talk about China in particular, to interact with
insurance providers or research about the products or
services, almost 80% of the customers using the digital
medium prefer the mobile platform.
The simple approach adopted by most of the customers
is of taking the help of a search engine, and a web
browser, and these are the customers who do not have
a specific provider in mind.
Source: https://www.bain.com/insights/insurers_how_to_lead_in_the_new_era_of_connectivity/

D)
Make a Mark in the
Connected World
This is a new era in the insurance world, which is
characterized by the new-age customers who prefer the
digital platforms and the digital medium and the quest
for services and products that are easy to purchase,
compare, and use.
This is the reason insurers are looking to refine their
business models with respect to the digital platforms
and relevant threats within and outside the industry.
Any insurer that fails to meet the expected service
standards of the customers is going to lose out on its
customers to its competitors.
However, this is not the only reason for customers
opting for the new entrants as they want to experience
something different and know how their new insurer
surprises them.

Customer Engagement- The
Future in the Insurance World
Just as we discussed above that customer engagement
has always been about the delivery of products and
services in the insurance industry and not about
enhancing the overall customer experience.
It is imperative for insurers to provide exceptional
customer service and personalized customer
experience if they want to boost their profitability.
If we talk about the future of customer engagement in
insurance industry, it is surely going to be a top priority
amongst the insurers since it has fast become the
backbone of customer service.
With every customer becoming more and more techsavvy,
and gaining more access to the wearable and
mobile technology, their expected level of customer
service is going to be high.
In order to satisfy customers of the new digital age,
insurers need to incorporate the use of the latest
technology & hire tech-savvy employees who can
match the service perception of the customers with
excellence.

Conclusion
This concludes the fact that customer engagement is a
top priority in the digital age in the insurance industry.
Every customer is looking for an enhanced service and
personalized attention in the present times.
In order to strike the perfect balance between customer
acquisition and retention, insurance BPO and insurers
need to stay ahead in the competition and meet the new
age customer demands.

About Cogneesol
Cogneesol is a leading brand in the BPO industry,
holding 11 years of experience in serving insurance
companies across the world. We help insurers and
insurance companies to improve operational efficiency,
reduce the turnaround time of projects, and give them
a competitive edge.
We provide a wide variety of insurance process
outsourcing services such as policy management,
insurance reporting, commissions management, claims
management, insurance agency management
insurance accounting, etc. to insurance companies,
agencies, carriers, MGA’s and independent insurers
worldwide
If you need any expert assistance to manage your
back-office operations and to get enough time to focus
on customer engagement activities, feel free to contact
us 24*5.

CONTACT US
info@cogneesol.com
+1 646 688 2821
www.cogneesol.com
30 Wall street, 8th floor
New York, USA
10005-2205