Posted On July 01, 2022.

As insurers continue to advance in their digital journey, here are some ways to foster digital inclusion.

Insurers need to safeguard their more vulnerable customers by providing them with what they need, and how they need it, to make informed coverage decisions. (Shutterstock)Insurers need to safeguard their more vulnerable customers by providing them with what they need, and how they need it, to make informed coverage decisions. (Shutterstock)

There’s no doubt that technology has simplified the lives of countless consumers, whether making e-commerce purchases, making payments from their phones or trading stock.

Technology has provided customers with more choices and control over their buying decisions across many sectors, and for those who are comfortable with the format, it’s never been simpler.

Personal lines insurance is no different.

Consumers have been demanding that the insurance industry embrace similar technological advancements to enable ease of use and facilitate their customer journeys. As proof that digitization drives significant improvements in the customer experience, employee experience and operational efficiency, consider that today 29% of people prefer to purchase life insurance through an online form, representing an 8% percent increase since 2011, according to RetireGuide®.

In the case of the personal insurance industry, companies are starting to take stock of these trends by ramping up investments in customer-oriented digital capabilities including sleek customer portals, real-time claims trackers, paperless reporting, personalized risk management and chatbots.

While these infrastructural investments represent a good starting place for insurers, they do not serve as a complete substitute for where the industry is going. As customers become more tech savvy and technology continues to advance and becomes easier to use, personal insurance may need to shift away from an agency model toward an online and direct-to-consumer (D2C) model.

What certain customer segments would value even more is a multi-channel model: Older and more vulnerable populations in particular still consider personal interactions of prime importance.

We see the direct-to-consumer trend happening en masse across other industries such as travel, retail and manufacturing. In the case of travel, direct online bookings now dominate the industry’s market share. As of 2020, 65% of revenue in the global travel and tourism market came from online sales channels.

This dynamic, when applied to the personal insurance industry, represents a looming problem for those customers who rely on agents for their insurance needs. The largest impact will be on older customers who may be less tech savvy and customers with disabilities preventing them from using digital channels. As insurers continue to advance in their digital journey, here are some ways that business and digital leaders can work to ensure digital inclusion.

Customer engagement

The insurance customer journey is comprised of a multitude of user touchpoints, from quoting and purchasing insurance to paying insurance premiums, filing for claims, renewing policies and follow-up service. It is vital to acknowledge that the customer journey of older adults and adults with disabilities can look very different compared to that of other demographics.

While the growing industry trend is to migrate most, if not all, touchpoints online, it is crucial to retain other channels to reach customers who are accustomed to working through agents and/or are not as comfortable with technology. Non-digital channels are important sales channels and should not be viewed as cost centers; even in highly digital markets, material revenue still comes from non-digital channels.

Customer portals are used by leading insurance companies to provide customers with a one-stop shop access to key services and information. Critical services such as bill pay, access to coverage information, and even risk management support can now be easily done online. While the advent of digital portals has certainly improved customer reach and convenience, it is also important to ensure that customers who require higher-touch service aren’t left behind.

Advances in technology allow companies to incorporate digital contact solutions such as chatbots and automated phone lines into the customer journey. While these features improve efficiency and reduce costs, older adults and adults with disabilities are less likely to be able to adopt new and emerging technologies, and as such may feel more comfortable speaking directly with a customer service agent.

With the progressive shift away from an agency model, customers lose an avenue where they can get insurance guidance and advice. To combat that and fill the gap, insurers can provide a personalized insurance service that is easy to use and ensure that customers get the most suitable products tailored to their unique circumstances. Insurers can also include in-house consultants as an add-on service to guide customers on their product selections. Further down the line, we’ll discuss how these consultants might also double as guides for non-digital natives to get comfortable using the insurance company’s apps.

Usability and accessibility

Digital accessibility and usability go beyond simply ensuring that all customers can access an organization’s internet content. It should make customer interaction with digital content seamless. Some ideas for making digital content accessible for older customers and customers with disabilities include:

Including their perspectives when designing digital solutions. For example, a product team can bring in a person with a disability to test a mobile application to ensure that the solution is truly accessible.

Simplifying language by avoiding modern and technical jargon. Digital words like “browsers” and “header” may seem like common words for native technology adopters but may confuse people who did not grow up in the technology era.

Providing digital content in multiple accessible formats, such as providing closed captioning on videos and accessible font (lettering, color, size) on websites.

Ensuring digital usability and accessibility will go a long way to helping customers with needs feel more integrated and comfortable with using digital services.

Insurers need to safeguard their more vulnerable customers by providing them with what they need, and how they need it, to make informed coverage decisions.

This is part-one of a two-part series. In the next part of this series, we’ll discuss the steps insurers can take to ensure that all customers are equally informed as they are brought along on an insurer’s transformative digital journey.

Original Post: Insurance inclusion means remembering the non-digital natives

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