Nurturing customer loyalty in the insurance sector


The customer experience within the insurance industry is under the spotlight, Zinnia has outlined some key way insurers can improve the customer experience.

The latest “Individual Life Insurance Study” by consumer insights giant, J.D. Power revealed an industry grappling with customer service and engagement issues. In the words of Robert M. Lajdziak, director of global insurance intelligence at J.D. Power, “It’s clear from our data that insurers are struggling to maintain regular contact with customers and to reinforce a unique value proposition during the length of the relationship.”

The study highlights several key points. First, customer satisfaction took a hit in 2022 due to dwindling interactions with advisors, call centres, and company websites. Digital channels, however, are preferred by almost half of surveyed customers who have used such channels in the last three years.

Second, a striking lack of brand differentiation is causing a competitive challenge. More than half of life insurance customers perceive their own insurer as similar to other insurers in the market. In contrast, InsurTech brands are viewed as unique, innovative and affordable.

According to Zinnia, the insurance industry is at a crucial point, with customer experience and engagement needing a significant overhaul. Salesforce’s 2022 “State of the Connected Customer” report underscores this, revealing that 90% of buyers believe a company’s experience is as important as its products or services.

Insurance is no exception to this trend. Customers today have a plethora of options and will easily switch to another provider if unsatisfied.

Furthermore, Zinnia said it is a well-known fact in the industry that retaining a customer is much more cost-effective than acquiring a new one. Therefore, delivering an exceptional digital customer experience is no longer optional but a necessity.

However, the insurance sector lags behind in terms of customer experience and engagement compared to other consumer products and services. The industry now needs solutions to better understand customers on a granular level and to deliver a seamless, personalized customer experience from start to finish.

Companies like Amazon and Google have set a high bar for customer experience, using data to offer personalised products and services promptly. Although insurance companies are proficient in using data to evaluate risk, many struggle to leverage their vast data reserves to deliver exceptional digital experiences. The transition from a reactive product-centric approach to a more proactive consumer-first approach is already underway. However, there’s no one-size-fits-all solution as different insurers are at various stages of digital maturity.

To improve customer experience, insurance companies need to understand the customer journey, utilise data effectively, digitise business processes and workflows, personalise experiences, and prioritise customer lifetime value.

Zinnia is one such company that is committed to delivering exceptional insurance experiences. Using Zinnia’s digital insurance solutions, carriers can provide consumers with what they want, when and how they want it. Zinnia offers solutions like the Hybrid Origination platform and Engagement & Loyalty product, which are designed to enhance customer experience and deepen the relationship between insurers and customers, thereby building brand awareness and growing business.

Offering an excellent customer experience in the insurance sector is vital for customer satisfaction and retention. Insurers need to understand their customers and their evolving needs, and meet them at the right time, using the right channels, with a personalised message. This is key to improving customer satisfaction, brand loyalty, and revenue growth.

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