The Future of CX in Insurance: 8 Trends Shaping the Industry

Want to retain your insurance customers? Embrace digital transformation.

Customer loyalty to insurance providers is down 28% post-pandemic. Almost a third (29%) will churn after one negative experience. With insurtech companies arriving on the scene—and providing convenient digital experiences—customers have plenty of options.

Usually viewed as slow adopters of technology, the insurance industry is experiencing a digital metamorphosis. Fueled by customer demand for greater convenience—and the need to keep up with the digital-first competition—a new era of customer experience (CX) is upon us. Let’s delve into eight key trends shaping the future of CX in insurance.

1. Discerning Customers Expect Effortless Omnichannel Experiences

Accustomed to the convenience and personalization offered by other industries, today’s consumers expect the same level of service from their insurance providers. This translates to a demand for omnichannel experiences. Insurance customers expect consistent, secure experiences when accessing their insurance information and seeking support, regardless of the channel they choose—even if they use multiple channels at once.

Customers may check the FAQs on your website (to learn how to file a claim), speak with a claims adjuster by phone, complete the form on their laptop and submit it a few hours later using their tablet, or review policy details in a printed document they received by mail. Insurers must make it simple for customers to complete the process without having to start over when they switch channels, devices, or even moments in time.

To provide a simplified omnichannel experience to insurance customers, you need efficient, coordinated digital solutions, with all communication channels (digital, print, and even phone) working together. To achieve this coordination, all customer data must be centrally integrated instead of stored in separate, siloed systems across communication channels and departments (e.g., billing, marketing, contact center). Then you need a customer journey management system that delivers the right messages to customers at the right time—whether they are paying a bill, renewing their policy, or submitting a claim.

2. Self-Service Is a Must-Have

Empowerment is the name of the game. Today’s customers crave the ability to manage their insurance needs independently. Robust self-service portals that allow customers to access policy information, make payments, and submit claims are no longer a luxury, but a necessity.

According to a recent survey of 2,706 U.S. adult consumers, demand for insurance self-service options is up 36% post-pandemic. Almost a fifth (19%) of customers who churned due to poor service did so because of a lack of (or limited) self-service options.

Self-service tools such as live chat, payment portals, and online FAQs and knowledge bases can reduce contact center call volumes and wait times for those who choose to call. Well-designed, effective self-service options reduce customer effort and operational costs and increase customer satisfaction.

3. Technology Powers Predictive Risk Assessment and Personalization

The future of CX in insurance hinges on innovation. By leveraging advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML), you can transform the customer experience. Imagine delivering hyper-personalized quotes based on individual risk profiles, or offering conversational AI chatbots that provide simple and insightful support.

The industry is recognizing this potential. According to an Ernst & Young study, a staggering 99% of global insurers are already investing (42%) or planning to invest (57%) in Generative AI (GenAI). For P&C insurers, this translates into top priorities like:

• Automated application processing with AI-powered review.
• Proactive risk identification through predictive analytics and ML.
• Dynamically generated pricing based on real-time insights.

4. Insurtechs Raise the Bar

Insurtech companies such as Hippo Insurance and NEXT Insurance are disrupting the traditional insurance landscape. Insurtech, short for “insurance technology,” refers to the use of innovative technologies—such as AI, machine learning, big data analytics, and blockchain—to improve and automate the insurance business model.

Insurtech businesses use predictive modeling and data analytics to:

• Better identify risks

• Anticipate claims and losses

• Personalize insurance products based on customer demographics, individual risk profiles and lifestyle choices

• Offer products at competitive prices

Insurtechs apply automation and digital processes to:

• Streamline operations, accelerating policy issuance and claims settlements

• Enhance customer experience (through user-friendly digital platforms and mobile apps)

Traditional insurance providers must step up their digital game to improve CX and compete with the insurtechs.

5. Keep It Simple and Speedy

In today’s fast-paced world, every moment counts. Customers expect all interactions with their insurance agency to be quick and easy—from receiving a quote to paying the premium, submitting a claim and getting it resolved. Complex claim processes and lengthy wait times are a recipe for frustration—and losing customers. Customer effort is directly correlated with churn rate. Customers don’t want to fill out five forms to submit a claim for a damaged roof, wait a week for the adjuster to measure their roof, and call repeatedly to check the status of their claim.

The future belongs to insurers who can streamline operations and automate tasks, leading to faster claim processing and better customer satisfaction. To boost customer satisfaction and loyalty, insurance CX teams need to identify and eliminate friction in their underwriting and claims processes. For example, using an app that measures the roof based on customer-supplied house photos eliminates having to wait a week or longer for an adjuster to climb up on the roof.

6. Customer-Centricity: The Key to Future-Proofing Insurance CX

Ultimately, the future of CX in insurance belongs to companies that prioritize the customer. This means building a culture that puts customers first, values customer feedback and continuously seeks ways to improve the customer experience. By putting the customer at the heart of every decision, insurers build trust and loyalty in an increasingly competitive market.

What does customer-centricity look like in insurance?

• Understanding customer needs and meeting them proactively
• Simplifying customer journeys through transparent, omnichannel communication and streamlined processes
• Building trust through fast and fair claims resolution

7. Streamlined Payments: A Smooth Journey from Quote to Claim

The way customers pay for insurance is also undergoing a transformation. Here are some key trends in insurance payments to watch:

• Faster and Easier Payments: Customers expect a simple and secure way to pay their insurance premiums. This includes offering a variety of payment options, such as credit cards, debit cards, digital wallets, and ACH. One-click payments and recurring billing options further enhance convenience.

• Omnichannel Payments: Just like the overall customer experience, insurance payments need to be consistent across all channels. Customers should be able to pay their bill online, through a mobile app, or even over the phone and be able to switch among these channels during the payment process seamlessly.

• Automated Payments: Many customers prefer the convenience of setting up automatic payments to ensure their premiums are paid on time and avoid late fees. This is also a great tactic to help ensure on-time payments from customers.

• Embedded Insurance: This emerging trend involves integrating insurance coverage directly into the point of purchase for a good or service. For example, some travel booking platforms offer embedded travel insurance during the booking process. Paying for this type of insurance can be seamlessly integrated with the overall purchase, creating a hassle-free experience for the customer.

By embracing these trends in managing the payments journey, insurers can create a more convenient and efficient experience for their customers, leading to higher satisfaction and loyalty.

8. From Chaos to Clarity: Streamlined Communication and Content Management

The future of insurance CX hinges on centralized content creation and streamlined communication. Customers get frustrated by:

• Inconsistent Messaging: Receiving conflicting information or irrelevant offers across different channels.

• Repetitive Content: Getting bombarded with the same generic messages.

• Unpersonalized Communication: Feeling like just a number, not a valued customer.

Here’s how insurers can address these challenges:

• Create, Edit and Share Communication Templates Efficiently: Draft consistent messaging for email, SMS, and MMS channels within a single, user-friendly interface. This eliminates the need for scattered documents and ensures brand consistency across all communication and lines of business.

• Reduce Communication Fatigue: Develop targeted communication plans that send only relevant and timely content to customers, avoiding information overload.

• Hyper-Personalize Communication: Personalize messages based on customer data, risk profiles and past interactions. Imagine sending targeted safety tips or policy renewal reminders instead of generic blasts.

• Maintain a Consistent Brand Voice: Establish a unified platform to ensure consistent messaging across all channels. This reinforces brand identity and builds trust.

• Streamline Content Creation and Approval Workflows: Improve collaboration between marketing and customer service teams by providing a central location for content creation and approval processes.

CSG Insurance Solutions: Simplify Insurance Interactions Every Step of the Way

Customers demand an effortless experience across every touchpoint. CSG equips insurers to deliver with:

• Omnichannel Communication: Connect on every channel (print, email, SMS, etc.) for clear, consistent communication.
• Effortless CX: Streamline interactions, personalize journeys and empower customers at every step – from quotes to claims.
• Simplified Payment: Offer secure, convenient payment options to build trust and loyalty.