How to improve customer engagement for insurance companies 

The rapid technological development, overwhelming digitalization, and the impact of the global pandemic have altered customer behavior and expectations about purchasing goods and services. Modern consumers are used to researching products, comparing options, and buying everything they need online. The same applies to the insurance industry, as clients expect companies to make information and services available digitally.  

Insurers recognize the growing demand for digital services. Thus, according to KPMG’s CEO outlook, about 85% have reinforced their pursuit of digitalization, while 80% enhanced their efforts to provide a seamless user experience. The two concepts are intrinsically intertwined since the right combination of digital channels can elevate client satisfaction. 

Meanwhile, numerous insurtech companies are joining the game, delivering the degree of digital experience that modern customers aspire for. Therefore, incumbents face challenges in adapting their infrastructure to new customer demands and reaching better customer engagement in insurance. How can legacy agencies stay ahead of insurtechs in the era of the digital economy? First of all, they shouldn’t attempt to beat insurtechs at their own game. They should start with researching customer expectations, prioritize relationship building, and nurture digital environments. 

The article studies how traditional insurance companies can overcome the challenges posed by emerging insurtechs and embrace digital technology for their maximum advantage. 

Learn more about our services for insurance.

What to do if you don’t know how to compete with insurtechs

The challenges facing traditional insurers spread from coronavirus-related payouts to cyber security threats and fierce competition from the side of thriving insurtechs. However, their future prosperity depends on whether or not they manage to promptly adapt their operating models, products, and working processes to a new reality in the smoothest and most cost-efficient manner.  

New technologies impact the insurance business. Thus, insurers must implement software correctly to unleash the full potential of digital transformation. Thankfully, abundant software solutions for insurance companies aim to streamline the transition from outdated legacy systems to advanced ones with minimal operational expenses. 

Advantages of digitization in insurance 

Digital transformation supported with breakthrough software tools can spur the development of specific insurance organizations and positively affect the whole industry. The transformation implies leveraging digital technologies to revamp existing operations, work cultures, and client experiences. Here are the primary advantages of digital transformation in the insurance sector: 

• Critical business insights obtained through predictive analytics empower faster business decisions in real-time 
• Better resource management, reduced costs, and minimized timelines in working processes 
• Enhanced claims processing and more proficient underwriting 
• Lesser complaints, along with enhanced customer experience and relationships 
• Better client engagement and retention

Read about how mobile apps can improve customer experience in insurance.

The pillars of modern digital insurance

What constitutes modern digital insurance or digital insurance 2.0? 

Customer centricity 

The customer-centric approach denotes the alignment of the organization’s offerings with its consumers’ current and future demands, aiming to maximize the financial value of these consumers. Such a strategy stems from a deep understanding of customers, their preferences, their likelihood to retain loyalty to the brand, and the opportunities for the future evolution of relationships. 

Personalized services and offerings 

Personalization is no longer a nice-to-have feature. It is a must-have for insurance companies of today. Personalization and customization of products and services refer to delivering ultra-targeted offers, messages, and prices to the right people at the right time. Such operations heavily rely on vast volumes of data, which are possible to collect and analyze thanks to advanced digital insurance tools. AI solutions are used to deliver personalized packages with precise targeting. 

Operational efficiency 

Operational efficiency is a general approach that helps address various challenges the insurance industry encounters today: growing expenses, altering consumer expectations, increasing competition, and more. To optimize their efficiency, insurers adopt programs intended to enhance flexibility and agility and simplify operations, eventually elevating user experience and saving costs.  

The corresponding methods primarily include: 

• Business process standardization and legacy system fix 
• Implementation of intelligent automation  

Open connected platforms 

To adopt a partnership-oriented approach and effectively leverage digital channels, the insurance ecosystem should open up for external players. Thanks to the availability of standardized insurance APIs, companies can get equipped with adequate tools that enable superior interoperability with external ecosystems, including banking, healthcare, IoT, and more. 

The open insurance paradigm allows players to deliver their new digital services with greater flexibility, scalability, and speed to meet the ever-changing customer demands. 

An omnichannel model 

An omnichannel approach entails the sales and marketing processes conducted through multiple channels. The latter includes an insurer’s website, user’s smartphone, physical stores, social applications, messengers, and more. The goal of an omnichannel model is to consolidate communication across channels to provide a seamless transition from one channel to another and create an overall smooth and coherent user journey.  

Customers’ changing needs have shaped digital transformation that includes a more personalized service portfolio and product assortment. AI is used to offer clients personalized packages targeted precisely at their needs. Add-ons and tailored insurance solutions mean that the old one-size-fits-all model is now obsolete. 

Rethinking your system? Check out custom insurance policy management software.

Where to start?

So, what are the fundamental steps for insurers to survive and prosper in the modern digital environment? 

The shifting consumer expectations foster the emergence of new and diverse channel options throughout the entire value chain. Such touchpoints as marketplaces, comparison sites,  insurance embedded in other businesses, and direct distribution are gaining traction.  

Consumers worldwide are moving toward digital channels. According to Statista, about 50% of U.S. insurance users are already purchasing online, which is predicted to escalate. Therefore, industry players should recognize the importance of their digital presence and shape the corresponding channel distribution strategies. 

To properly implement their innovation and growth plans in the age of Digital Insurance 2.0, insurance companies should focus on the following aspects: 

• Communicate with consumers when they are motivated 
• Reinforce conventional channels with digital capabilities 
• Integrate new digital touchpoints that are most beneficial to both a customer and an insurer 

6 benefits you get with digital tool implementation

By enriching your client’s journey with multiple digital channels, you will win in various aspects. 

Benefit 1 — Eliminating paperwork and simplifying customer’s job 

The entire process of purchasing insurance online is significantly easier for users. As a rule, customers can get quotes and choose their insurance plans online.  Therefore,  they don’t need to attend a branch, fill out paper forms, or even connect with an insurer by phone. 

Benefit 2 — Relieving the load on a call center 

Automation tools like chatbots can instantly address customer queries and answer frequently asked questions. By handling requests without human interference, digital solutions save resources and reduce the associated expenses.  

Benefit 3 — Increasing the efficiency of interaction with customers  

Modern clients require instant resolution of their requests. Thanks to online transactions, users become empowered to conduct various insurance-related processes promptly and conveniently. They can use the insurance services from any place and at any time. Besides, by digitizing the processes of buying policies and submitting claims, agencies simplify the customer journey. 

Benefit 4 — Offering product-specific features to clients 

A universal approach in insurance doesn’t work anymore. Instead, companies craft tailored products and offerings via digital insurance procedures. Digitalization allows for creating user-based, on-demand, and all-in-one lifestyle offers that conform to customer needs. The products become more flexible, including micro insurance and peer-to-peer options, which leads to a more relevant product portfolio. 

Benefit 5 — Reducing operational costs  

The advent of digital marketing enables considerable savings, especially on advertising and infrastructure. Without an agent, a direct interaction between an insurer and a client minimizes the time and money spent. 

Benefit 6 — Retaining customers and attracting new ones  

By elevating the overall customer experience, from the buying to the post-selling stage, digital marketing allows insurers to construct trusted client relationships, drive loyalty, and minimize churn. Modern technology solutions aid in facilitating a customer journey and not only meeting but also anticipating user demands. Ultimately, happy customers will likely become loyal customers and spread the word about your brand. 

3 digital tools to reach the best customer engagement in insurance

According to our experience, three digital channels shape the backbone of a stellar strategy. Although there is no universal solution for all, you may consider prioritizing these tools in your digital mix. The channels include mobile applications, web portals, and AI-powered chatbots. 

Digital tool 1 — Mobile apps  

Mobile applications grant the convenience of instant access to all the services whenever a user might need them. The benefits of implementing effective, user-friendly insurance mobile apps throughout the entire client value chain are striking. 

Pros of mobile apps 

• Compliance with customer demands: users can research the available insurance packages, buy the selected product, and manage their accounts 24×7, from any place. 
• Attaining a competitive edge: insurers can set up a range of engaging features in a mobile app, automate business processes, and acquire new clients through advertising on other online platforms.  
• Increasing customer touchpoints and loyalty: a greater array of touchpoints allows for creating meaningful consumer interaction. 
• Customer data analytics: accumulating such customer information as identity data and other types of qualitative and quantitative information enables insurers to obtain deeper insights into customer behavior and attitudes. 

The core features of a stellar mobile app: 

• User panel – the opening page displaying details about the insured customer. 
• Policy data – details of policies, manners, and insurer’s benefits. 
• File a claim – a claims-filing tab that makes submitting claims easier. 
• Payment gateway – the integrated payment system that must accept payments from key service providers. 
• Client support – an opportunity to contact the support anytime. 
• Notifications – push notifications with important reminders. 
• Document storage – an opportunity to upload documents and import them from third-party services if needed.  

Digital tool 2 — Web portals  

A custom web portal is a mandatory tool for insurance companies. It should empower users to get online quotes for various packages and services or obtain the product of their choice. 

Pros for policyholders 

Remote self-service. No more are your customers limited by your team’s working hours or office location. A self-service portal delivers client support round the clock.  

Unobstructed access to product information. Product descriptions, FAQ sections, customer support, and other relevant data are continually available for users. This functionality allows clients to obtain instant answers to their questions without increasing the strain on your customer support department.   

A prompt claim approval. A transparent claim management process streamlines operations and delights customers. You can automatically inform clients about each phase of the approval process with the help of real-time notifications, eliminating their uncertainty and anticipating concerns.  

Pros for insurers 

Reduced customer acquisition cost. A convenient and engaging web portal encourages users to continue their interaction. Excellent client experience facilitates the customer journey throughout the sales pipeline, thereby reducing acquisition costs.  

Optimized product channel distribution. A web portal is a perfect platform for implementing various channel distribution strategies. It allows insurers to explore a whole range of digital marketing tools, including search engine optimization, content marketing, pay-per-click ads, and social media ads.  

Enhanced customer retention. Web portals give fruitful grounds for establishing a neat client management system that automates and personalizes communication. By providing automated reminders of agreements’ renewal, tailored offers, and other valuable information, such a system drives satisfaction, loyalty, and retention.  

Customer data accumulation. Self-service portals are instrumental in collecting data and analyzing user actions. Insurers can work out more relevant and highly customized offerings based on this information.  

Sample features 

• Policy management – the opportunity for a company to list all policies with all the associated information. 
• Agent management – an ability to overview and manage all agents and their work. 
• Digital workspace – a unified workspace available to your agents and employees. 
• Claims and renewal management – a section that empowers clients to file a claim and track their requests. 
• Online payment  – an opportunity for clients to pay their premiums online. 

Explore the related case study: Web portal for claims management.

Digital tool 3 — AI-powered chatbots 

AI chatbots are quickly becoming usual for insurance companies as they are indispensable in quickly handling simple customer queries. They have also proven their efficiency in providing financial advice and managing claims. Thus, up to 44% of users are satisfied with using chatbots when making their claims and applying for insurance. 

AI chatbots utilize NLP and machine learning algorithms to better understand the user’s sentiment and respond dynamically. They can address various customer requests, making the service swift and easy like never before. The tool can also help customers navigate through different insurance products.  

Related article: “Life insurance software product development process”

Benefits of AI chatbots 

• Exceptional scalability and cost-efficiency 
• An ability to communicate with many people simultaneously 
• A reduced workload for customer service staff 
• Minimized processing times and greater user satisfaction 
• An opportunity to reveal customer needs through customer input 
• Higher quality advice, which raises premiums, broadens cross-selling opportunities and reduces churn 

Sample features 

• Omnichannel messaging support: the feature helps incorporate chatbots into various channels, such as a website, WhatsApp, Facebook Messenger, and more.  
• Live chat handover: a properly defined fallback for transferring the chat to a human agent when required.  
• Sentiment analysis: the ability to understand emotion and the opinion behind the customer’s text with the consequential influence on the satisfaction level.  
• Chatbot marketing and analytics: the opportunity to automate marketing efforts and obtain valuable customer data for further analysis. 
• Chatbot widget customization: the opportunity to customize a chatbot in terms of branding and messaging. 
• Chatbot API: the ability to further enhance a chatbot functionality by obtaining data from other tools, like databases and CRM. 
• Data security: the tools aimed to enhance privacy protection, such as end-to-end encryption, authentication and authorization, and self-destructing messages.  
• Natural language processing: enables users to ask questions in their own language and in any form they choose. 

Explore the related case study: Chatbot for insurance.

How to choose the right engagement channel

Traditional agencies must craft a thoughtful and comprehensive digital marketing plan that radically differs from conventional strategies that worked fine several years ago. Insurers need a holistic view of an entire customer journey that is attainable by orchestrated and coordinated campaigns throughout digital channels. 

To compose the right marketing mix, start with analyzing the market, competitors, and target audience, as well as your company’s strengths, weaknesses, opportunities, and threats. 

Ultimately, you will be able to answer the following questions: 

• What are the strategies that your competitors have implemented?  
• Is there something you can do differently for a better outcome? 
• What are the actual market trends? 
• Are your customers comfortable with your services? 
• What metrics and goals can be achieved on a monthly, quarterly, or yearly basis? 
• Can your service team address the incoming queries efficiently? 
• At which stages of a customer journey do your clients tend to drop off? 
• Do you have problems with client acquisition or loyalty? 
• Do your agents need new or upgraded lead generation tools? 

The answers to these questions will help you identify the areas where digital tools can bring maximum fruit. To leverage each tool to its maximum efficiency, consider the following recommendations: 

How DICEUS can help you

DICEUS is a software development company that crafts custom technology solutions to satisfy businesses’ needs. We work worldwide with a team of more than 250 full-time tech professionals. Our experts have successfully completed over 130 projects, and this number continues to increase. 

Insurance businesses cannot survive without digital tools, and we at DICEUS put all our efforts into delivering all the digital services you may need. We can help you select the proper digital solutions and implement them for you seamlessly.  

Read more about DICEUS.

Build a mobile app 

DICEUS can handle the project comprehensively, starting from business analysis and customer journey mapping and finishing with maintenance and performance optimization. Our tailored solution will allow you to minimize operational costs, drive loyalty, and improve customer acquisition. 

Our mobile application development services embrace various domains. We create solutions for smartphones, tablets, and other devices. The engineering process encompasses all the necessary phases: 

• Business analysis 
• Architecture planning 
• UI/UX design and prototyping 
• Development 
• Testing and QA 
• Deployment 
• Tech support 

Depending on your goals, we can craft a unique mobile application that is compatible even with exotic operating systems, such as Tizen and Chrome OS. We also offer cross-platform apps that function on different devices. 

Our mobile application development services include: 

• Android development 
• Applications for wearables and smart gadgets 
• Cross-platform solutions development 
• Web app extensions 
• Modules’ integrations 
• iOS solutions development 
• MVP and POC construction services 
• Publications in app stores 
• Corporate and e-commerce app development 
• Financial applications development 
• Maps and location app development 

The complete list of your opportunities does not end here. Share your idea or an issue you need to address, and we will elaborate on a bulletproof solution.   

Develop a web portal  

DICEUS approaches customized web app development comprehensively, starting from the discovery stage and managing the full-cycle SDLC. An advanced web portal will streamline your processes, reduce paperwork, and grant unique functionalities to your team and customers.  

We provide an exhaustive range of development services, including research, design wireframing and prototyping, architecture planning, coding, optimization, support, DevOps, and more. 

Be sure that we will find the most advanced tech stack to deliver you a stellar product. 

Specifically, we offer: 

• Web portal and web application creation 
• Blockchain solutions 
• CRM and ERP products 
• Cross-platform solutions 
• Enterprise solution architecture 
• UI/UX design 
• Cloud solutions development 
• SaaS solutions 
• Data migration 
• Testing and quality assurance 
• Continual support 

Check out our insurance software testing and QA services

Implement a chatbot or integrate a messenger 

We consider your business goals and logic, product specifics, and the audience’s aspirations to work out the most relevant conversational flows. Our software will help your customers minimize their efforts to buy your products or submit a claim. We also offer integration of messengers, such as WhatsApp, Telegram, and Viber, to your core systems to expedite customer engagement and interaction and further enrich their journey.  

What we do: 

• Identify customer needs and expectations 
• Determine features and technology stack 
• Design the conversation flow 
• Train an AI-based bot 
• Integrate the bot with your systems 
• Test the chatbot 
• Conduct deployment and support 

Here is an example of chatbot features for car insurance: 

• Purchase car insurance in a few clicks 
• Find car information and automatically fill in personal data 
• Make an online payment for your insurance 
• Receive your insurance policy by email 
• Submit claims 

Learn how to build a chatbot for an insurance company

DICEUS welcomes your new project

We possess ultimate resources, expertise, experience, technical stack, and passion for bringing whatever project to sensational results. According to your goals, we can adjust a cooperation model, the required types of services, the end product features, and any other parameter you may need. A perfectly functioning solution and a delighted customer are our hallmarks.  

The fundamental advantages you can expect from our cooperation include the following: 

• Customer-oriented approach 
• Profound domain knowledge 
• Flexible cooperation and pricing models 
• Complete handling of a project 
• Adherence to stringent industry standards and recommendations 
• Transparency of the entire development process 
• An extended pool of technology tools and programming languages 
• A seamless transfer of all project information when you need it or when a project is over 

Therefore, we master all tangible and intangible means to help your business attain and surpass its goals. Let our team remove whatever concerns you may have and safely rely on professionals to succeed in your digital transformation.  

Win an edge over the competition thanks to skyrocketing low customer engagement in insurance and address the challenges facing your organization in the modern environment. Besides, with digital technology, you will open the horizon of new opportunities for your business growth. 

Contact us to start an exciting digital journey right away!