Staying ahead of the curve: adapting to insurance consumer preferences for improved retention

In today's competitive insurance industry, customer retention is more important than ever. And the key to driving retention is to continuously meet consumer expectations and preferences — which in today’s rapidly-changing world, can feel like a moving target.

• What do today’s insurance consumers want and expect?
• How has digital innovation shifted those expectations?
• And how can insurance providers keep up with rising digital expectations while maintaining essential human connection?

Buckle up and keep reading; we’ll answer all these questions and more so you can focus on the right opportunities that can have the greatest impact on your retention goals.

Digital innovation has changed insurance consumer expectations

Digital innovation has transformed almost every industry, and insurance is no exception. It’s drastically altered the experience for both the provider and the consumer, altering the way they interact and how services are delivered. Automation and digitization have simplified underwriting and claims processes, reducing paperwork and accelerating claim settlements. With innovative technologies like blockchain, insurers can enhance security, transparency, and trust in transactions.

Digital innovation has also empowered insurance consumers by making insurance more accessible. It’s easier than ever for consumers to research, compare, and purchase policies. And once they have a policy, they expect quick and easy-to-access online communication, and simple self-service tools for tasks like address changes.

Overall, digital innovation has not only improved operational efficiency but also enriched the customer experience, making insurance more engaging, efficient, and responsive to evolving consumer needs.

Let’s take a closer look at the rising expectations of today’s insurance consumer, driven mostly by digital innovation.

What today’s insurance consumers expect

When shopping for or using insurance services, consumer expectations are high. They want a seamless and hassle-free experience with insurance providers who are there for them every step of the way.

Some of these expectations include:

• Customized coverage: Consumers expect insurance policies to be tailored to their specific needs and preferences. They want options that align with their lifestyle, whether it's coverage for specific assets, events, or even usage-based policies that adapt to their behavior.
• Transparent pricing: Transparent and competitive pricing structures are important to today’s insurance consumer. They expect insurers to provide clear information about premiums, deductibles, and any additional fees. They value upfront pricing disclosure to make informed decisions.
• Easy accessibility: When it comes to digital, insurance consumers want effortless access to services through multiple channels. They expect responsive customer support, online self-service options, and user-friendly mobile apps for managing policies, submitting claims, and obtaining assistance whenever needed.
• Seamless digital experience: With the rise of digitalization, consumers anticipate a smooth and intuitive online experience. They expect streamlined online applications, fast policy issuance, and hassle-free claims processing. Integrating digital platforms, such as chatbots, AI-powered tools, and human-guided CX to enhance customer experience is also appreciated.
• Quick and fair claims settlement: Insurers that process claims promptly and fairly are valued. Insurance consumers expect a simplified claims process, minimal documentation requirements, and efficient communication. Fair evaluation, timely settlements, and transparent updates regarding the progress of their claims are crucial.
• Enhanced security and privacy: As data breaches become more common, consumers demand robust security measures to protect their personal information. They expect insurance providers to prioritize data security and privacy, ensuring their sensitive information is safeguarded.
• Proactive risk management: Insurers that go beyond coverage and actively assist in risk management are sought after by today’s consumer who expects personalized advice, proactive loss prevention measures, and risk mitigation strategies to protect their assets and reduce potential risks.
• Sustainable and ethical practices: Today's consumers are increasingly conscious of environmental and social issues. In fact, 80% of those surveyed want insurers to embed environmental, social, and corporate governance (ESG) initiatives into their proposition.
• Innovative offerings that shift focus from protection to prevention: Consumers appreciate insurers that embrace innovation and provide unique offerings. They expect new technologies, such as telematics for auto insurance or smart home devices for property coverage, to enhance their experience and potentially lower premiums — nearly 60% want to be rewarded for healthy living.

Meeting these consumer expectations is vital for insurance providers to attract and retain customers in an evolving and competitive marketplace.

The importance of matching consumer expectations with company promises

Consumers are skeptical. They’re not quick to trust and they seek companies who are authentic, honest, and follow through with their promises.

To retain customers, insurance providers must align their promises with their actions. Smoke and mirrors won’t cut it today — brands must deliver. Infusing empathy and compassion into every interaction will demonstrate a commitment to providing real value and ethics.

Customers want to feel understood and cared for in their time of need, and insurance companies can differentiate themselves by delivering on this expectation. By embedding a winning purpose into their brand promise and consistently delivering on it, insurers can ignite meaningful growth and build lasting customer relationships.

Delivering on customer promise with human Guided CX

Improving digital interactions isn’t a new challenge, of course, but one that has proven stubbornly difficult as consumer expectations constantly evolve.

While digital innovation is crucial, insurance companies can’t lose sight of the importance of human interaction. When it comes to complex problems — and let’s face it, in insurance there are a lot of complex problems — consumers value human guidance and expertise. Insurers should not solely rely on automated systems but rather foster a balance between digital tools and human agents.

Read: The importance of empathy when delivering exceptional customer service

Let’s dive into a specific example — benefits and claims processes. Benefits and claims processes can be notoriously challenging for customers to navigate, especially when they’re facing a difficult or stressful life event. Instead of merely throwing self-guided tools and chatbots at them, this is a prime time to add authentic, human support. Glance can facilitate a powerful and personal digital human connection that lets the agent see the screen of the member, or beneficiary, and provide personal, compassionate guidance when they need it most. By leveraging a human-guided customer experience, insurance providers can drive greater customer satisfaction and ultimately retain more customers.

Customer retention in the insurance industry relies on the ability to adapt to insurance consumer preferences. By recognizing consumer expectations, embracing digital innovation, aligning company promises with actions, and leveraging the power of human-guided CX, insurance providers can build strong and lasting relationships with their customers. This will not only result in higher customer satisfaction but also drive business growth and foster long-term loyalty.

Want to add more human connection to your digital interactions? Create real human connections in your digital space to guide customers through new and complex processes, increase adoption, and improve customer satisfaction with Glance for insurance.