Frictionless Insurance is Strategic CX Priority for Insurance Sector: IDC
According to a study by IDC and Liferay, 60 per cent of insurers say attracting and retaining customers are their top priorities. Providing personalised experience to new digital customers is a must for any insurer to build loyalty and long-term relationships. Insurers are increasingly looking at technology to drive this growth strategy based on customer […]
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According to a study by IDC and Liferay, 60 per cent of insurers say attracting and retaining customers are their top priorities.
Providing personalised experience to new digital customers is a must for any insurer to build loyalty and long-term relationships. Insurers are increasingly looking at technology to drive this growth strategy based on customer centricity.
Banking and insurance is the second fastest growing industry in terms of IT spending.
Despite the impact of COVID-19 on the global economy, the insurance sector is one of the largest business process optimisation technologies investor. In fact, IDC Research estimates that the IT spending in this segment will rise at a Compound Annual Growth Rate (CAGR) of 6.0 per cent globally by 2024, reaching a market size of 135 billion USD.
This can be primarily attributed to the fact that 73 per cent of the financial services industry is projected to maintain or increase IT spending compared to 2020. Among IT spending in the insurance sector, customer experience (CX) will have a 37 per cent market share by 2024, rising at a CAGR of 17.5 per cent to reach 50 billion USD.
Keeping up with the customer
As consumers continue to evolve on their digital needs and preferences, they require new ways of interacting with the brands. Today’s tech-savvy customers are not just ready for self-service but prefer self-service over assisted service. IDC and Liferay’s study shows that 55 per cent of insurers already have, or plan to develop a customer dedicated online portal.
Omni-channel engagement and frictionless insurance are strategic priorities related to Customer Experience (CX) that best describe what insurers expect to accomplish to achieve their digital mission. It is also necessary to prioritise key digital transformation use cases and develop a digital transformation road map to evolve to the future digital state.
IDC research also reveals that 60 per cent of insurers have a plan to implement personalised communications for customers. In order to simplify and customise these experiences, insurance companies should incorporate intelligence to internal and external processes for a better understanding of the customer journey, and also, align their organisation with the corporate perspective, strategy and systems.
Anytime-anywhere insurance buying and servicing
The increasing technological demands in the insurance sector are mainly due to the changing needs of a new digital customer looking for an anytime-anywhere insurance buying and servicing experience.
Market trends are shifting the entire business model of insurance, where advanced data analysis in real time helps to create new products on the fly and present them to customers as an added value.
Therefore, to stay relevant and remain competitive in these challenging times, insurers need to meet the experience expectations of all stakeholders by using technology such as digital experience platforms, which help unify efforts towards evolving customer-centric initiatives. The stakeholders in the insurance ecosystem include customers, employees, distributors, partners, agents/brokers, carriers and insurtech players.
In this new era, technologies and processes that businesses deploy are so tightly linked to their customers and markets that the boundary between the internal aspects of the enterprise and its external ecosystem is rapidly disappearing.
Digital experience platform (DXP) as the intelligent core
Insurers will need to utilise a digital experience platform (DXP) as the intelligent core that will transform them into a customer-centric organisation through simplifying and personalising CX and connecting CX with a full ecosystem. The DXP comprises two relational, interdependent sides (internal and external) connected through a set of integration and orchestration services. It helps reduce friction and supports a seamless personal customer experience.
Also Read: Let’s Rethink Everything
IDC recommends utilising a digital experience platform to:
- Effectively leverage emerging technologies to support engagement and experience services.
- Focus on meeting customers along the customer journey by introducing additional value through new channels of engagement and using data and technology to surface meaningful information for the customer.
- Connect the entire ecosystem of employees, agents, brokers, and other stakeholders to data, processes, and systems to ultimately serve customers better
