Insuranceciooutlook

Why Insurers Need Omnichannel Approach?

By Insurance CIO Outlook | Thursday, March 19, 2020

An omnichannel approach will allow the insurers to maintain competitiveness, retain customers, and facilitate growth.

FREMONT, CA: Insurers today are turning to customized and omnichannel experiences—offering customers a seamless experience across any channel they use. It ranges from in-office visits, phone calls, websites, mobile applications, and many others. The two significant factors motivating this omnichannel approach is the need to improve efficiency and modern-day consumer's digital expectations. The significance of this is that it attracts and retains digital-savvy consumers. 

Due to high overhead costs, insurers today need to maximize their digital channels and use customer data to increase conversions and grow their business. Insurers whose omnichannel experience focuses on customer experience see higher growth levels. To deliver consumers with a solid omnichannel experience needs the responsibility to manage data from various channels and maintain effective communication.

Demographic changes are also a significant factor for insurers’ shift to an omnichannel approach. Millennials represent the future of the insurance market, and they prefer buying insurance products and services instantly through any channel or device. Customers might switch to companies that pay more attention to customer experience if their insurer is not able to offer them an ideal digital experience when it comes to accessing and managing their policies,. This means that the current generation of people has higher expectations about the quality of service expected through digital channels.

Top 10 Insurance Agency Management Consulting/ Services Companies - 2020Omnichannel enhances customer engagement in no small degree. Most of the time, well-designed channel interaction bridges the gap between customers and insurers and brings them closer, thereby improving customer retention. Arming insurance advisors and brokers with a seamless experience with the insurer across the value chain will help in reducing time in the back-office operations. Attaining customer delight will make the customer loyal to the insurers, whereas achieving advisor and broker loyalty allows insurers to create a good distribution network.

Implementing the omnichannel ecosystem is not a cakewalk. It requires strategies that include well-coordinated efforts from all stakeholders within the organization. Insurers will also need to capitalize on flexible tools for online, mobile, and social media servicing. So, insurers can start now, as the demand for omnichannel experiences increases.

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