Customer Engagement in Insurance: Challenges and Solutions

Customer Engagement in Insurance: Challenges and Solutions

Whether it’s digital innovation or a global pandemic, the world is always changing and bringing with it new challenges. For insurance companies, which have already been struggling to keep up with the speed of new innovations, identifying the obstacles ahead will be vital for success.

But no obstacle is too great as long as you have the right strategies and tools in place. Here’s how to overcome today’s biggest customer engagement challenges in the insurance industry.

Engage with the Digitally Savvy Insurance Consumer

With technical know-how and an abundance of information at their fingertips, the digitally savvy consumer — including millennials and the emerging Gen Z — is no easy target.

They’re used to doing their own research and would rather search online for plans, prices and reviews than sit one-on-one with an insurance agent. They also know the power of customer data and are starting to demand being charged according to behavioral data.

A quick look at the numbers emphasizes this:

  • 79% of consumers plan to use a digital channel for insurance interactions (though, nearly 50% of insurers don’t have a plan for their digital transition).
  • 69% of consumers would share significant data on their habits in exchange for lower prices from their insurers.
  • 66% would share significant data for personalized services to prevent injury and loss.
79% of consumers plan to use a digital channel for insurance interactions, but nearly half of insurers aren’t prepared for this. Personalized Video can help.

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While increased access to information has empowered consumers, it’s also made it more difficult to engage with them beyond a transaction. Because these informed and independent customers are comfortable exploring options on their own, there are now fewer opportunities for companies to establish a memorable relationship with them.

As a result, these customers have a weak sense of loyalty and won’t hesitate to switch to a provider that offers a better-perceived value. In contrast, when customers are engaged, they purchase 22% more types of insurance products, represent a 23% premium in share of wallet, and stay customers 4 years longer.

How, then, can an insurance company engage with this pool of discerning and demanding consumers? By being where they are and providing the content they want.

Communicate Strategically to Drive Engagement

Today’s consumers don’t want their hand held during a sales process. They want the necessary content to make decisions on their own. But not all digital content is created equal.

To engage with both current and potential customers, you’ll need to communicate in a way that’s valuable, memorable and interactive.

  • Valuable. Above all, every communication with your customer should provide value. Yes, you can promote your products and services, but if the information is not helpful to your audience then they’re likely to exit out of it quicker than you can say “skip ad.”
  • Memorable. Opt for a digital channel that helps customers remember you and your message. Video marketing is effective because it’s engaging, entertaining and makes complex info easy to understand.
  • Interactive. Encourage engagement with interactive elements. Turn passive viewers into active visitors by letting them enter their information to generate a custom quote or play with a visual diagram of different plan options.

A perfect example of content that combines all of the above elements is Living Video, a revolutionary form of video that allows viewers to interact directly with the player and get personalized content in real-time.

Check out Living Video in action by clicking the lightning bolt in the mortgage calculator example below.

Now imagine how Living Video could be used to engage with your own customers. For example, those interested in your insurance products could interact with the video to get a custom quote in a format they won’t forget. We’ve seen insurance leaders get some incredible results by leveraging our video personalization platform. Here are just a few:

  • 5x uplift in engagement
  • 40% increase in policies sold
  • 7x return on investment

Deliver Inspiring Customer Experiences

Continued engagement can help insurance companies build a stronger relationship with their customers, but this relationship needs to be backed by a reliably positive CX.

Customers are increasingly likely to switch providers. In 2020, 27% of customers say they’re likely to consider purchasing insurance from online providers like Amazon or Google. That’s up 23% from 2018.

The differentiator that can get them to stay? An incredible customer experience.

Onboarding That Sets the Right Tone

Insurance can be complicated and, oftentimes, customers struggle to understand whether the costs are worth it. Don’t hesitate to dispel that worry. Build your customers’ loyalty right from the start by making sure they understand your value early on.

An onboarding video that creatively explains policy details with memorable visuals is one way to do this. Plus, the personalization factor quickly establishes that you see your new customer as a unique and valued individual, not just another sale in the bag. This is a key point, as only 28% of insurance customers reported being satisfied with their provider’s level of personalization.

Watch how Allianz did this with their award-winning personalized onboarding video.

Read more about the concept and how it all came together in our blog post.

Proactive Customer Service

To really strengthen and solidify your customers’ loyalty, you’ll need to not only meet their expectations of customer service but surpass them. In addition to addressing the questions and difficulties that your customers have, be proactive about anticipating any issues so you can solve them before they’re even brought up.

Providing digital resources is an efficient way to proactively provide customers with the solutions they need. At the same time, by allowing customers to self-serve, service agents are freed up to answer more pressing concerns that need human contact.

That doesn’t mean customer service is relegated just to FAQ web pages (that — be honest — no unhappy customer searching for an answer wants to sift through). A dynamic video can provide a personalized answer and even be proactive, answering questions that commonly arise before your customer encounters them.

Making a claim is one common example of a complex process that video can simplify. Insurance companies can use video to outline exactly what the customer needs to do and personalize it to include the details of that customer’s particular coverage plan.

Personalized Video can also be used to address consumer concerns. See how Bupa used it above to reassure customers who may have been worried about how the COVID-19 crisis would affect their health insurance coverage.

Engaging With a Remote Workforce

Your employees are the heart of your customer engagement strategy. After all, you can have the best digital tools available, but if you have no one to nurture leads or handle the hardest customer service questions, things fall apart.

While the pandemic forced most industries to go remote, a recent McKinsey Global Institute analysis found that the insurers were particularly poised for success with remote work. Including activities like analyzing information, processing claims and underwriting, three quarters of the work by insurance companies can be done remotely without risking productivity.

But a remote workforce comes with its own challenges, as mentioned by PWC. From training and employee motivation to team culture, companies will need to approach these elements differently when employees are connected only online. This is in addition to the current labor shortage as companies face the challenge of recruiting and keeping new talent.

In this current environment, adding personalized elements will be key to maintaining that much-needed “human” touch in HR communications. Incorporating data-driven video or Personalized GIFs in the application and onboarding process can make a big difference in setting your company apart from others.

Whether it’s a welcome GIF that introduces a new employee, a training module that’s personalized to each new role, or a thank-you message to boost morale, our Personalized Video platform can help you with the job.

Stay Ahead with Data-Driven Innovation

From an evolving consumer base to the growing crop of competition, insurance companies will have to face the challenge of getting and staying ahead in the industry. And to really stand out to their customers, innovation will be key.

PWC found that insurers in Asia were able to gain first-mover advantage and increase brand awareness by thinking ahead, taking risks and prioritizing data as a source of innovation. The insights they gathered from analyzing data allowed them to boost efficiency, fine-tune new products, and improve customer experience.

What innovations will emerge may vary from company to company, but McKinsey & Company anticipates that increased insights will lead to a bigger focus on claim prevention. Relying on data, insurers can proactively suggest actions that would help reduce the risk of a loss.

For example, a company can send a warning about potential hail damage from an oncoming storm or a tip to adjust the heat to keep pipes from bursting during a snowstorm. These suggestions could be a simple push notification or take the form of dynamic, data-driven video.

Here’s an example from another industry — utilities — which gives tips on how to improve water consumption. You can see how the combination of visuals, narration, and music help to deliver the message in a way that’s more pleasant, memorable, and personal than a pop-up would. Plus, adding Living Video elements will contribute to data collection and personalization.

Upselling is another opportunity to use data creatively and effectively.

In a recent Deloitte survey, 62% of insurance executives report that offering additional insurance products that add value and extend core insurance products is a top driving factor for consumer acquisition. By leveraging customer data, insurers can provide personalized recommendations for new products based on their customers needs and past buying behavior.

Here’s an example from AXA that shows personalized upselling in action.

To learn more about AXA’s upselling campaign, download the case study.


Learn how BBVA used Personalized Video to increase retirement savings

Ultimately, moving forward, effective data collection and analysis will play a huge role in determining success in the industry. Insurance companies need to prioritize having a solid data strategy for the future, including an approach to first-party data. Learn more about the shift to first-party data and how Living Video can help.

Overcome Obstacles with Personalized Video

Ready to take your customer engagement in insurance to the next level and see how it boosts your bottom line? Idomoo is here to help you engage with your customers, connect with your employees and innovate for the future.

Check out how other insurance leaders have utilized personalized video and seen an ROI of 300% to 700%. Or get a play-by-play on how to harness the power of personalization by watching our webinar below.

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