1.
INSURANCE AND THE
CUSTOMER EXPERIENCE:
IS TRUSTTHE
BIGGEST ISSUE?

2.
t probably goes without saying that
improving customer satisfaction is a
challenge for any business. From
delivering consistency across all channels, to
keeping up with a rapid pace of technological
change and an increasingly demanding
customer base, the road to transformation can
appear daunting to most. But as the upcoming
CX Insurance event will highlight, the
challenge to insurance providers can seem
even greater.
In the land of the blind…
Not only are the common CX hurdles
difficult to jump, a vast amount of companies
remain in the dark when it comes to
understanding their own levels of success or
even the perception the public has about their
brand. According to a recent study
undertaken by Bain & Co, 80% of companies
surveyed believe they provide a “superior
experience” but only a mere 8 percent of
companies had customers who agreed with
that stance. In that same study, the
commercial impact was also evident. Of the
80% of ‘misguided’ companies, average
annual revenue growth was notched at just
2%. Of those that were actually doing things
right?...A massive 19%.
All is not lost. Recent figures quoted by
Success CXP also suggest that nearly all
businesses are savvy enough to put CX
among its top priorities and wish to be
recognised as leaders in this field. So far,
around a third of companies are just getting
started with a formal initiative while only a
fifth consider their initiative to be ‘advanced’
in its design. So change is afoot, but not all
that quickly.
However, many of these companies are
insurance companies, an industry infamous
for its slow uptake of true CX
CX NET W OR K
I
F E B R U A R Y 2 0 1 6 C X N E T W O R K
CYNICISM towards mass
media,big business &
government
CONSUMPTION
behaviours are
undergoing a cultural shift
COMMUNITY becoming
redefined and seeking
sense of belonging
CUSTOMISATION is now
a critical element of the
1:1 experience
COMMUNICATION
for customers means
always being connected
but easily overwhelmed
CONSERVATION is
quickly becoming a way of
life
CONVENIENCE...
becausedesire for instant
gratificationcan drive
innovation
7 Deadly Trends of
Customer Experience
Source: Donna Peebles

3.
transformation. Of course, there is fair
argument that they have a much tougher task
on their hands. CX centres on easy customer
engagement, straight-talk, and – perhaps the
key ingredient – trust.
Those who offer insurance have the chips
stacked against them in all categories, let alone
when it comes to having a culture of
technological innovation needed to keep up
with consumer demand. Other markets have
found ways to reinvent themselves, such as
digital companies benefiting relationships
through multi-product models (from DVDs
to washing machines, and – yes – even
insurance), whereas conventionalinsurers
have failed to be proactive.
As an example, a survey on the subject of
Multi-Channel CX for Insurance recently
evaluated ten insurance companies from
across the general, motor, home, life and pet
sectors on the basis of a number of crucial
CX factors. Among the results, only three of
ten insurers successfully responded to
customer contact via Twitter, only five of ten
successfully responded to a customer email,
and one insurer even failed to respond to all
ten customer questions posed to it online.
With the exception of a few countries, the
percentage of insurance customers reporting
positive experiences is fewer than 30%, worse
than in banking.
The elephant in the room
Mention insurance to most people outside the
business and the reaction is likely to be less
than lukewarm. More often than not,
customers will only connect with their
providers through necessity – when they are
having to form a new plan or make a claim.
Almost no one relishes this prospect. This
provides little time for insurance companies
to offer an enhanced personal service or to
gain a better understanding of their
customers to leverage new promotions. But if
there is one massive strike against the
industry’s name, it is the common belief that
insurance providers are money-oriented and
not people-oriented. By nature of the
industry, insurance could never work on the
(often ill-advised) mantra of ‘customer is
always right’. That means dialogue between
company and customer is often impeded by a
mutual sense of distrust, warranted or not.
The trust factor is rising up the ranks of
customer concerns. A CapGemini study
found that it was the third most important
factor in determining whether a customer
chooses to take up with a life or non-life
insurer, falling just behind price and product
features, but bearing more weight than aspects
like ease of purchase, loyalty awards and even
online accessibility.
CX NET W OR K
C X N E T W O R K F E B R U A R Y 2 0 1 6
‘The common belief
is that insurance
providers are
money-oriented and
not people-oriented’

4.
This raises the question: are insurers listening?
If they put their ear to the ground, they may
not like what they hear. With social media
now making the likelihood of a dissatisfied
voice being broadcast for all to hear, insurers
need to interpret this in terms of a business
risk. 84% of customers trust the experience
of other consumers, outweighing any active
or reactive marketing efforts a company can
offer. This means that as much as insurers
need to have the capability to respond to
these broadcasts immediately, efforts are best
placed in nurturing a positive experience in
the first instance, then encouraging social
broadcasting of these individual
achievements.
Meanwhile, the very subject of
communication across all channels is as much
a matter of trustworthiness as the service
provided. Sending a message out and
receiving no response can be interpreted as
incompetence, detachment or even outright
contempt for the customer. In a moment
where a problem needs an answer, a lack of
input can transfer the customer’s frustration
from the issue at hand to the insurer itself.
Inversely, an immediate and helpful response
can endear even those in the midst of a
meltdown. And don’t think that won’t be
remembered. To an insurer, a policy may look
like a piece of paper. To a customer, it is their
future in an envelope.
Fraud presents another unique stumbling
block for insurers, costing the industry $30
billion each year. With fraudulent claims on
the rise, carriers require smarter and more
effective security and prevention technologies.
Relying on this analysis to be done after a
claim has been made serves to erode trust.
CX NET W OR K
F E B R U A R Y 2 0 1 6 C X N E T W O R K
Nota “sexy”product
Aninherited
image/culture
Lack of transparency Can feel remote
Claimsprocesscanbe
cumbersome
Emotional customers
vs rational business
Preconceptionthat
“theywon’tpayout”
Providersprioritise
cost-containment
Providersassume
manyclaimsare
fraudulent
Insurersdon’tgenerally
value/rewardloyalty
Customerstreatedlike
strangerswitheverycontactToo muchjargon
Impenetrable comms Complex Ts& Cs
From the CTX Insurance 2015 Workshop
Why the lack
of trust in
insurance
providers?

5.
Fredi Lienhardt, VP of the Big Data & Smart
Analytics Centre at Swiss Re, told a CX
Network conference that “It is important for
insurance companies to start providing tailor
made products, that are completely aligned to
the needs of the customer at the time they
want it. This can be achieved through reacting
in real-time, being flexible and really listening
to the wants and needs of the customer.”
…So are we overthinking the problem?
CX NET W OR K
C X N E T W O R K F E B R U A R Y 2 0 1 6
Accidentsandfires
commonaftera sunny
bankholiday
Be available
How
insurance
providers
could address
the trust issue
During/afterasevere
weatherevent
Is 24/7 availability
a possibility?
Make iteasyfor
customerstoprovide
more information
Gather datato proactivelycommunicate
whencustomerneedshelp
Couldincentivise through
fun/competitiive promotions
Explore biometrics
and advancedtech
Greetcustomerswarmly,
not“Hello, what’syour
policynumber?”
Understandchanges
inlife
stage/circumstance
“Protectmy family”
“Take me withyou”
on the journey
Make the important
informationshortandclear
Follow uptocheckpeople
understandwhatthey have bought
BEFORE they needtoclaim
Emulate Santander’s
“welcome”calls
Make the important
informationshortandclear
Insurance isa “keeping
life ontrack” service
Emulate South
Africa’s“All Life”
service
Quickrecovery
afteran event
Offersevere weather
alerts,relevantto
home/motor/health
From the CTX Insurance 2015 Workshop

6.
You can’t buy trust…or can you?
To begin the fight back, insurance companies
simply need to move from providing remote
product-led information to their customers, to
focusing on an optimised experience that is
open, human-led and promotes engagement.
In other words – embarking on a mission to
improve trust.
Being price-sensitive towards customers can
lead to them holding multiple products with a
carrier, which in turn can lead to the ‘organic’
advantages of word-of-mouth and social
media recommendations. In the bid for
securing customer lifetime value, these are key
factors to consider and leverage.
To get there, all insurers need to seriously
consider transforming digitally, both internally
and customer-facing. Technology upgrades
and upskilling staff are both necessary to
engage with customers on a multi-channel
basis, as well as to prepare for the innovations
in online interaction that lie just around the
corner. At the same time, if more
advancement and investment can be made
into countering fraud as it occurs – or
deterring it altogether – customer-carrier
engagement has less chance of being
darkened by the shadow of investigation.
None of this should be interpreted as a tough
expense. The easier the customer journey, the
fewer repeat interactions and errors which
results in lower cost. Ultimately, improving
customer experience not only enhances the
time the customer spends with employees but
also increases revenue, thereby raking back in
a return on investment.
With this in mind, if trust is the issue,
investment may well be the answer.
Customer Experience Transformation:
Insurance 2016 will return to London, UK,
on 25-26 May, offering the insurance
industry invaluable insight into:
• Addressing your insurance-specific
customer experience needs
• Benchmarking against the industry
leaders and your peers to gain an
understanding of the market
• Establishing the next steps you need to
take in your customer experience
journey
• Learning how the latest technologies
can help you attract and retain
customers
• Discovering how to engage your
customers to reduce churn rates
CX NET W OR K
F E B R U A R Y 2 0 1 6 C X N E T W O R K
CLICK TO FIND
OUT MORE

7.
25 - 26 May, 2015
London, UK
2015 brought alarming news for the insurance industry in the form of two industry studies which
reported record-breaking drops in customer experience satisfaction. Insurance companies are fast
realising that customer experience now one of the most important ways to achieve competitive
differentiation in an increasingly commoditised market. Customers have more options and higher
expectations than ever before, and very little loyalty to insurance companies.
Creating truly engaged customers is the most sure-fire way to ensure a reduction in churn levels
and increased profitability. For today’s customer, this means an engaging digital experience, fast-
response times and a company which puts the customer first. Customer Experience
Transformation: Insurance will bring together pioneering customer experience leaders in the
insurance industry to guide you through the best ways to achieve true customer satisfaction
loyalty.
Download the agenda
Discover how to:
• Address your insurance-specific customer experience needs
• Benchmark against the industry leaders and your peers to gain an understanding of the market
• Establish the next steps you need to take in your customer experience journey
• Learn how the latest technologies can help you attract and retain customers
• Discover how to engage your customers to reduce churn rates
www.customerexperienceinsurance.com
enquire@iqpc.co.uk +44 (0) 207 036 1300
BOOK NOW
Delivering a positive customer
experience to reduce churn and
differentiate from competitors #CXinsurance