Top Challenges Faced by Insurance Companies in Customer Service

Top Challenges Faced by Insurance Companies in Customer Service

2 min read

The challenges faced by insurance companies today are operational, cultural, and market-related. The modernization, technological advancements, and regulatory changes are forcing these companies to change the way they have been operating their business so far. Customer Experience is emerging as ‘make or break a deal’ for insurers. Those players who have invested in technological tools have an upper hand and this puts a lot of pressure on the others to adopt these technological tools.

Here are few of the challenges that are faced by the insurance sector in customer service and how they can be overcome using the right technological tools.

Understanding the Customer Better

Insurers need to meet the diverse customer expectations, which are possible only if they understand their customers better. Thus, information about the current and potential customers and its comprehensive analysis is very important. This can be achieved by using Big Data as a key tool. It helps in customization of customer responsiveness and optimizing the business processes. Using Big Data, companies can understand, collect, retain, and interact with their clients using a tailor‐made approach.

Gaining Customer’s Loyalty

Using Speech Analytics’ insights help in servicing the customers better and gaining their loyalty. The insights from Speech Analytics give the agent access to intrinsic aspects such as their sentiments and feedback about the product/service. Equipped with deep and meaningful insights, Contact Center managers can devise training programs to create customized sales opportunities. This has a direct impact on the company’s bottom line.

Achieving and Delivering a Consistent Customer Experience

The focus area is to deliver a good and consistent Customer Experience. The continuous data sharing using behavior monitoring‐based insurance products, GPS, or mobile applications enables better understanding when it comes to customers’ needs. If there is some platform that provides information in an integrated manner, then it is possible to give the right response to the queries of each customer in a better way.

Customer Engagement

To engage a customer, the company needs to have the ability to deliver consistent and outstanding experience across all channels. A customer can interact through an email, call center, live chat, or speak directly face-to-face with a representative. If you falter on any channel you will get an irate customer and if the customer is net savvy it will result in negative publicity. Irate customers generally take to social media very quickly if they have a bad experience. According to a survey, dissatisfied insurance customers are 40% more likely to tell others and 26% switch their service providers. Thus, the quality of the interaction needs to be good and seamless regardless of the interacting channel.

While these are the top challenges faced by the insurance industry in customer service, insurance companies are deploying the best possible tools and technologies to overcome such issues.

Recommended: To know more about how Speech Analytics can uncover specific business insights for companies operating in the Insurance sector, click Speech Analytics – Boosting Customer Engagement and Business Growth for Insurance Providers

Table of Contents