Essential Strategies to Improve Customer Experience in Insurance

Insurance companies operate in a sector where clients’ trust is more valuable than anything else. Because of this, they must prioritize providing exceptional service to potentially build strong relationships with their clients. Fortunately, initiatives such as creating and utilizing transcriptions for the insurance industry can help improve customer experience.

Even so, companies often face challenges in delivering an improved insurance customer experience due to factors like complex products or the emotional nature of many interactions, which create barriers to customer satisfaction. We will attempt to address these barriers.

In this article, you’ll learn how:

  • Insurance companies like Northwestern Mutual and New York Life have raised the bar for all insurers.
  • Insurers face gaps in their CX strategies due to the lack of analytics tools to understand customer preferences.
  • Only 20% of customers consider digital channel trends their top choice for interacting with insurers.

Customer Expectations In Insurance Companies

We can’t deny that the digital age has accelerated everything, including peoples’ expectations of insurance companies.

Insurance companies like Northwestern Mutual and New York Life have raised the bar for all insurers, with over 80% of their customers reporting being satisfied. As part of the results, insurance clients now demand speed, convenience, or an improved overall service from insurance companies.

On the brighter side, meeting these expectations isn’t a very tall order. User-friendly websites or mobile apps are satisfactory options as they allow users to easily navigate, find information, request quotes, manage policies, and initiate claims—more on that later.

Gaps In Customer Experience Strategies For Insurers

Insurance is a complex product, and getting it right for every customer is difficult, even in the best circumstances. 

Tried-and-tested business practices mandate that management teams examine their processes and strategies to identify potential gaps. As such, data is required to conduct gap analyses. 

The problem with many insurers is that they fail to utilize the right tools to gather the right data. Additionally, the struggle to keep pace with digital transformation results in outdated online platforms that fail to offer consumers desired features.

To add to their woes, a one-size-fits-all approach is no longer sufficient. With so many options in the digital era, customer preference is bound to cover a wide range. 

Good news, though. Transcription and other processes can help with gathering information. With transcripts, management teams can collate and analyze customer data and identify key pain points that must be addressed. 

Metrics to Track To Improve Insurance Customer Experience

Below are some metrics that can help identify better ones.

MetricDescription
Customer Lifetime Value (CLV)Predicts a customer’s net profit contribution over their entire relationship with the company.
Churn RateMeasures the percentage of customers who discontinue their policies within a specific period.
Customer Effort Score (CES)Assesses the ease of customer interaction with the company, such as purchasing a policy or filing a claim.
Digital Experience MetricsTrack customer engagement and satisfaction across digital platforms, including website and mobile app usage.
First Contact Resolution (FCR)Calculates the percentage of customer inquiries resolved during the first interaction.
Customer Surveys and FeedbackCollect qualitative data on customer experiences, preferences, and areas for improvement.
Average Handle Time (AHT)Measures the average duration of customer interactions, such as phone calls or chat sessions.
Retention RateEvaluates the percentage of customers who renew their policies over a given period.
Customer Feedback VolumeTracks the number of customer complaints, compliments, and suggestions received.
Customer Satisfaction (CSAT)Assesses overall customer satisfaction with the company’s products, services, and support.

Ways to Improve Customer Experience In Insurance

Below are some effective strategies to improve client satisfaction.

Guide Customers Through Complicated Products

Reading insurance policies can sometimes be an overwhelming experience, as they’re often filled with niche terms that can sometimes frustrate clients. That’s where clear, concise guidance comes in.

As much as possible, insurers should prioritize breaking down these complicated products into easily digestible pieces through simple language or relatable examples to help customers understand what they’re purchasing. 

Visualizations like infographics or short videos can also be handy tools in this process since they can make abstract concepts more tangible—you won’t pay for something you don’t understand, would you?

Educating potential clients can help build trust since you’re trying to ensure they understand the product. This, in turn, can lead to satisfied clients who are more likely to recommend the company to others.

Get Your Workforce Involved in CX Efforts

Frontline representatives have a unique perspective on customers’ challenges because they hear or see them firsthand. Therefore, involving them in CX initiatives can help insurers develop more customer-centric solutions, leading to better customer experiences and positively impacting employee satisfaction.

Successful customer-centric transformations can significantly uplift employee satisfaction. Suppose an insurance company trains a substantial portion of its employees and everyone on CX initiatives. In that case, it can result in doubled customer experience scores, a notable reduction in processing times, and improvements in cross-sell and retention rates.

Implement Useful Digital Tools

Many insurance customers are open to using digital channels for routine servicing; however, some are unsatisfied with the current offerings. Only 20% of customers consider digital channels their top choice for interacting with their insurer, indicating a significant improvement opportunity.

Create an Omnichannel Customer Experience

Insurance carriers interact with customers infrequently, so each touchpoint holds significant weight. Many customers switch channels during the pre-purchase phase, so gaps often exist between digital and in-person interactions—gaps that must be closed for a cohesive experience.

Therefore, offering seamless journeys across online and offline channels is important for meeting modern customer expectations and providing a personalized experience. Improving digital channels’ ease of use, reliability, and security could shift more life insurance customers online. 

Address the Wide Range of What Customers Want 

Customer preferences vary significantly based on customer journeys and segments. However, customers still prefer to speak with a knowledgeable representative when learning about the services.

However, these preferences may evolve when insurance companies step up the game for their digital capabilities. Nevertheless, insurers must cater to a wider customer base rather than focusing on the average consumers since they expect personalized advice that aligns with their needs. 

Use the Unique Strengths of Human Interaction

Frontline advisors remain the most trusted source for learning about insurance products among life customers. Advisors can increase customer satisfaction and ratings and improve the customer experience compared to other channels. Some customers even say they would likely switch insurance carriers if their advisor left.

Customers who speak with their agents at least quarterly have a much higher average customer satisfaction than those who interact annually, and even fewer touchpoints result in a poorer experience.

However, not all insurance customers interact with their advisors yearly, meaning life insurers may be missing opportunities to strengthen customer relationships by not using human touch more effectively.

Record and Transcribe Crucial Customer Interaction

Transcribing recorded customer support calls can give insurance companies insights into customer needs, preferences, and pain points. Call transcripts can be analyzed using different types of analysis software—coupled with human expertise—to identify common areas for improvement. 

In addition, transcripts can be used to record client conversations so insurers can review interactions for quality assurance or compliance. Agents can also refer back to transcripts to ensure they follow up on customer requests or have provided consistent information.

Why Choose Ditto to Handle Your Transcription Needs?

With Ditto, you won’t have to settle for low-quality or automated transcripts, which are only 86% accurate. 

Choosing Ditto Transcripts means you’ll have the best, most affordable, and most accurate service provider in the market. We offer the following:

  • Accuracy: We don’t just claim it; we guarantee 99% accuracy in every transcription project. All you have to do is focus on creating valuable recordings like customer calls, and we’ll transcribe them flawlessly.
  • Human Expertise: Our team doesn’t rely on machine learning. We have experienced transcriptionists who understand the subtlety of multiple speakers,  jargon, or niche terms. We’ll create transcripts that reflect the natural flow of your conversation.
  • Turnaround Time: We understand your time is money, so we ensure your transcripts are delivered within the agreed-upon timeframe. You can also choose the turnaround time—a rush project or a standard one. 
  • Security: Recordings aren’t created equal; we understand that some may contain sensitive customer data. For that reason, Ditto Transcripts is HIPAA, CJIS, and FINRA compliant. You can sleep well at night knowing that we secure the confidentiality of your content.
  • Affordability: We acknowledge that recordings can be highly valuable for insurance companies and that transcribing them can be costly. So, we offer high-quality transcription services that won’t break the bank—we have options to fit any budget without sacrificing quality.
  • 24/7 Customer Service: Humans run our customer service process—not chatbots. We take the time to understand your requirements and will gladly assist you with technicalities or answer any questions for the best possible customer experience. 
  • Customizability: Our transcription services aren’t just about accuracy and meeting the client’s requirements. Do you need a verbatim transcript that captures every “um” and “uh”? Or do you need a polished version for a blog post? We can modify the transcript to meet your needs and ensure you get exactly what you need to reach your goals.

Improve Insurance Customer Experience With Ditto

Leverage Ditto’s expert assistance to improve customer experience for your insurance business by leaps and bounds.

Gain the benefits of improved efficiency, cost-effectiveness, accessibility, and legal compliance with the highest level of accuracy.

Partner with us to streamline your workflow, enhance decision-making, and drive your business forward in this data-driven world. 

Not convinced? Contact us today for a free trial.

Ditto Transcripts is a Denver, Colorado-based transcription company that provides fast, accurate, and affordable transcription services for businesses of all sizes. Call (720) 287-3710 today for a free quote, and ask about our free five-day trial.

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