How to Meet the Evolving Expectations of Insurance Policyholders

Policyholder expectations have changed. Many of today’s policyholders have grown up with the internet, and it’s helped shape the way they view and interact with the world. As a result, consumers are both savvy and demanding, and insurers need to keep up. Here are three ways policyholder expectations are evolving:

Expectation #1: Really Fast Customer Service

People don’t like waiting. A study from Ohio University found that many people are unwilling to wait to receive a reward – even if they’re only required to wait a matter of seconds. Keep that in mind when you’re reviewing average customer hold times.

The situation may be getting worse, too. According to ZDNet, a study found that technology is making people even more impatient. This means that wait times that were seen as reasonable in the past might be considered unbearable now. If insurers aren’t increasing their customer service times, they’re falling behind.

Expectation #2: Digital Tools

Digital tools have been increasing, and the pandemic supercharged this trend. According to the J.D. Power 2020 U.S. Auto Insurance Study, digital channels became the preferred method of interacting with auto insurers during the pandemic.

  • Buying Coverage: Customers want to be able to get quotes and purchase coverage online.
  • Accessing Policy Documents: Most states now allow electronic proof of auto insurance. Customers want to be able to access this and other policy documents easily from their phones.
  • Making Payments: Payments Journal says that Generation Z is leading the adoption of alternative payment options. In-app payments are especially popular; 40% of Gen Z consumers have used in-app payments, and 15% do so regularly.
  • Reporting and Managing Claims: the J.D. Power S. Claims Digital Experience Study found that digital claims adoption increased about 20% in three years, and claimants who use digital tools have the highest claims satisfaction.

Expectation #3: More Options

Modern consumers have more options than ever. Whether they are buying cereal or car insurance, they are used to having multiple choices.

  • Communication Channels: Do your policyholders prefer to communicate via phone, email, text, or messaging app? Communication preferences vary from generation to generation, and individuals also have their own preferences.
  • Payment Options: When making or receiving payments, people want to be able to select the method of their choice. While some may still want to use checks, many will prefer ACH, credit cards or debit cards. People also want options to pay via mail, online, in-app, or over the phone.
  • Policy Options: Policyholders have always needed options for different coverage types and limits. Now, they want another option: telematics. According to the J.D. Power 2021 U.S. Auto Insurance Study, 34% of auto insurance customers are willing to try usage-based insurance.

How Insuresoft Helps You Stay Ahead of the Curve 

To deliver on the expectations of modern consumers requires an agile core system. That’s exactly what you’ll discover with Insuresoft. Our suite of services includes:

  • Inbound and outbound digital payment options
  • eSignature capability
  • “Out of the box” integrations to more than 300 third party interfaces to enhance policyholder experience
  • Mobile app for policyholders and agents
  • Low code / no code solutions to deploy rate changes quickly and easily
  • Realtime operational dashboards for claims handling

Intrigued? Request a demo to learn more.