Enhancing Customer Experience: The New Digital Frontier in Insurtech

Today’s consumers want increasingly convenient and digital access to their insurance products. Insurtechs that master the omnichannel approach are able to nurture the varying needs of policyholders and provide a seamless and streamlined experience that builds trust and loyalty.

In a competitive marketplace where policyholder demands continue to evolve, taking a customer-centric approach through an omnichannel strategy can be key for insurtechs to grow their market share. Continue reading through this article as we discuss what an omnichannel approach is and how it can boost insurtech performance.

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Understanding the Omnichannel Approach

An omnichannel approach is a customer-centric support strategy that focuses on a seamless experience across different channels. It calls for coordinated and orchestrated communications with policyholders through all the different channels and touchpoints, from online platforms and mobile apps to traditional phone and in-person interactions.

While this might sound similar to a multichannel strategy, the two are not the same. A multichannel strategy promotes a product or service via multiple channels to expand the audience, while an omnichannel approach focuses on the customer experience across a variety of channels. We’ll now dive into some of the advantages of this approach.

Enhanced Policyholder Experience

Possibly the largest benefit of an omnichannel strategy is that it enhances the policyholder experience. This helps insurtechs build better loyalty and retention, which are essential to their long-term success.

Policyholders interact with insurtechs at every stage, from requesting a quote to policy issuance, policy management, filing a claim, and reaching out to the support team. Insurtechs therefore need to offer consistency and efficiency every step of the way.

An omnichannel approach elevates the policyholder experience because it allows policyholders to interact with insurtechs over their preferred channel. They can expect a unified experience even if they are interrupted or need to revisit an issue later through a different channel.

In practice, this means a policyholder can call an agent over the phone with a question in the morning, and check their email later in the afternoon to receive a detailed summary of their discussion, any resolution that was made, and possible follow-up information. If the policyholder responds to the email with additional questions, there will be no lost context, and they will not have to repeat the details of their situation again.

Competitive Advantage

In today’s competitive landscape, an omnichannel and policyholder-centric strategy can set insurtechs apart from their peers, particularly when many insurers still take a traditional approach. Offering advanced capabilities like being able to file a claim online or receive support via chatbot can really differentiate insurtechs.

Further, an omnichannel strategy that is tailored to each policyholder’s unique needs is appealing to potential new policyholders, as well as building loyalty and retention with existing policyholders. An omnichannel strategy increases the lifetime value of policyholders and makes them more likely to refer their provider to their peers, thus boosting both current and future performance.

With the insurtech market slated for significant growth over the next few years, an omnichannel approach could be a key way for organizations to stand out in an increasingly crowded marketplace. Specifically, the insurtech market is expected to reach a value of $146.4 billion by the end of 2030, representing an impressive CAGR of 50.78% over this period.

Operational Efficiency

As well as helping insurtech companies foster better and longer-lasting relationships with policyholders, an omnichannel approach can lead to better operational efficiency in both the near and long term.

Internally, adopting an omnichannel approach paves the way for streamlined workflows, reduced redundancies, and improved data analytics. Automation saves employees valuable time, freeing them up from manual and repetitive tasks in the short term and helping to reduce operating costs over the long run.

Plus, an omnichannel approach helps insurtechs to become more agile and responsive to changing consumer demands. Technology and consumer preferences evolve rapidly, and an omnichannel strategy makes it easier for insurtechs to quickly adopt new channels in order to stay relevant and competitive.

Multichannel and Omnichannel Strategies: What’s the Difference?

It’s important to note the key difference between a multichannel and omnichannel insurance strategy. While the terms may sound interchangeable, there is an important distinction between the two that can significantly impact the policyholder experience. 

A multichannel strategy means policyholders and insurers can interact over multiple channels, like social media, email, phone calls, SMS, and online. While this might seem identical to omnichannel strategies; there is significantly reduced integration and coordination in a multichannel strategy compared to an omnichannel approach. 

With a multichannel strategy, each channel operates separately, meaning policyholders may get an entirely unique message or experience when they interact with their insurer via email than when they speak over the phone. An omnichannel strategy is a more intentional and integrated method of communicating with policyholders, providing a more streamlined experience regardless of the channel they use. 

What Challenges do Companies Face when Implementing Omnichannel Strategies?

Because of the complexity of creating an integrated policyholder experience across channels, an omnichannel approach is not something to rush into without proper planning. Insurtechs often face the following challenges when implementing an omnichannel insurance strategy: 

  • Tech compatibility: Organizations need to ensure their CRM, billing platform, and other critical business tools are compatible and can work with one another to support an omnichannel strategy.
  • Data formatting issues: If data is siloed and stored in different systems or applications, it can be difficult to create a unified policyholder profile or database, which is essential for delivering personalized experiences across channels.
  • Cost: A large upfront investment may be required if insurtechs need to upgrade their technology or infrastructure to implement an omnichannel solution.

Can Omnichannel Strategies Increase Revenue for Insurtech Companies?

An omnichannel insurance strategy has positive implications on policyholders’ experience, satisfaction, and engagement, all of which can lead to better retention and revenue growth for insurtechs.

With hundreds of new insurtechs hitting the market each year, policyholders can easily leave their current providers for a similar competitor when dissatisfied with their customer experience, resulting in higher churn and revenue loss. A better, more seamless experience with an omnichannel strategy can drive more loyalty and retention among existing policyholders, and even further revenue growth when satisfied policyholders recommend the insurtech to their peers. 

The Bottom Line

An omnichannel insurance strategy is multifaceted, and implementation should therefore begin by understanding how your policyholders prefer to interact with your organization. As a result, you can offer a more convenient and consistent experience that drives policyholder satisfaction. Despite the challenges, insurtechs that successfully implement omnichannel strategies can gain a competitive advantage and drive long-term growth for their business.

Perfect the Omnichannel Approach with Insuresoft

Insurers who want to orchestrate a quality and customer-centric omnichannel approach with a leading insurtech can find their edge with Insuresoft. Using Insuresoft’s Diamond platform, insurers can navigate the growing complexity of today’s marketplace while still staying competitive and exceeding policyholder expectations.

Our all-in-one solution combines core policy processing, billing, claims, digital engagement, and intelligent data in one location to help advance an insurer’s mission. With Insuresoft, you can connect all core, data, and digital components with APIs for a cohesive and consistent experience that is optimized for policyholders.

Forward-thinking insurers who not only want to keep up with the times but also seek to excel in the current marketplace can do so with Insuresoft. We know how to help modern insurers build valuable and long-lasting relationships that are based on trust and powered by innovation.

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