Insurance penetration rates in the US across both life and non-life segments have weakened in the last decade, dipping from a moderate 3.9% in 2008 to 2.9% by 2018. The number of policies sold has fallen, products that were once attractive to consumers no longer meet their needs. In fact, in the commoditized world of insurance today, the product is rarely a significant enough differentiator. Customer experience is what makes all the difference.
Insurance consumers expect highly intuitive and personalized customer experiences, seamlessly integrated sales, and service channels. Better customer experience has been at the top of the insurance agenda for several years, indicating that many insurers are still playing catch-up in this area and remain vulnerable to non-traditional players like insurtechs, especially those offering sophisticated customer interactions.
In the pandemic-ridden world we see today, never before has ‘empathy’ in customer experience been more critical, and is more likely to stay that way in the post-pandemic world of tomorrow. Recent research reveals a rather intuitive finding of 90% consumers who receive an empathetic customer experience will continue using that brand over others.