Actionable insights from Matt Connolly at Sønr

"Hello all.
 
Off the back last week’s geeking out on how willing people are to buy insurance from Amazon and Google, here’s another little gem I came across.
 
There’s a phrase that I’m sure you’ll have heard plenty of times over the past few years:
‘Customers only speak to insurers once a year, on renewal.
And if it’s more often, then it’s to make a claim.
In either case, it tends to be pretty bad experience.’
 
What I’ve not seen, until recently, is any hard data supporting the value of connecting with customers more frequently.

And then lo and behold I stumbled across this Bain study from last year. A few interesting nuggets:

  • Most insurers have not seen a significant rise in their Net Promoter Score since 2014
  • 34% of customers say they do not interact even once a year with their insurer
  • Customers with connected devices interact 19 times a year with their carriers

 
The most interesting part - customers with connected devices give their insurers higher NPS ratings. And in theory, higher NPS means better retention, and increased up-sell and referral.
 
If you’re looking for a few more $$ in the business, it might be worth reconsidering your data strategy."

It used to be that that course of action would increase costs and deter insurers. No more!

Changing the relationship of Costs and NPS. Pre-digital operating costs and Net Promoter Score (ie customer satisfaction) were two levers that moved in opposing directions. If you cut costs, service suffered and satisfaction dropped. To increase satisfaction, more staff who are better trained pushed up costs. The economics of the insurance industry and claims environment now mean that costs will come under unprecedented pressure. Thankfully, it IS possible to increase satisfaction and NPS simultaneously. The key is to base digital services on a no-code platform. No-code simply means business users amend and deploy digital services without incurring IT costs and delays. Systems that guide customer journeys and automate journeys and supply chains can be changed from the desktop.

It is clear that general insurers can retain customers through pricing. However, if claims costs are rising and costs rise too, that becomes increasingly difficult. COVID-19 has changed the world but it has also changed the way that insurers need to look at legacy systems, IT choices and customer expectations in the digital world.

For those opting for a no-code turbo-charge of their claims systems, the future looks somewhat brighter because digital delivery no longer need suck costs from the business.

You can read more about this topic at 

No-Code Insurance Platforms: Hype or Game-Changing?

Worried about the resilience of no-code insurance technology? Three reasons not to...

Whatever you do the message is to significantly improve NPS, Customer Satisfaction and user experience, and optimise customer journeys so that they can manage insurance policies and claims from their phones