From underwriting and risk assessment to claims processing to fraud detection to customer service, the efficacy and turnaround times for these core insurance functions have, for decades, been contingent on expertise and the availability of human agents because insurers needed to manually investigate applications using static, rule-based systems. This often took days or weeks to complete, as the process involved significant human judgment. As for customers, they had no choice but to wait before a policy was issued or a claim was processed. Many insurers continue to operate under this model today. These fragmented views don't provide a complete view of the customer's journey.
But what has changed today is a consumer's digital appetite. This is why the need for a unified customer view that spans channels, products, and interactions has never been greater. It brings all insurance data together in one place, enabling insurers to deliver more accurate services faster. Here's why this matters now more than ever.
The High Cost of Disjointed Customer Interactions in Insurance
Personalized interactions and 24/7 brand availability unquestionably influence consumers' purchase journeys today. Unlike a few years ago, they have more options now and have experienced frictionless digital journeys. Amazon and Netflix are a few brands that stand out. Often, the great digital experiences these brands offer elevate expectations, making consumers very selective.
Sure, it would be unfair to compare these to a distinct, complex service like insurance, which must comply with evolving regulations while protecting sensitive information. But human beings don't operate in this manner. Studies show that thoughts, feelings, and behaviors influence how people buy, use, and dispose of products/services. For example, customers can inquire about the product/service on a social media channel and call the helpline number upon minor dissatisfaction. And shift to a competitor right away if the answer is unsatisfactory. Therefore, insurers must be fully prepared to engage customers at all times.
Amid this landscape, insurers still reliant on legacy systems will find it tough. These legacy apps are ill-equipped for the digital age. They give limited visibility into customer interactions. Also, sifting through multiple tools to gather information not only hampers agents' productivity and customer service metrics such as average handling time, net promoter score, and first response time but also affects a brand's long-term image.
Transitioning from disjointed customer interactions to a unified 360-degree customer view helps insurers meet heightened expectations. Rather than relying on separate apps, portals, or user interfaces for sales, billing, claims, and policy service, agents can access all these capabilities on a single platform. And policyholders can track their transaction history, get renewals updates, and submit claims online using self-service portals. This unified approach enables insurers to deliver the ultimate "Amazon experience" modern customers demand today.
Laying the Foundation for a Unified 360-Degree Customer View
Achieving a 360-degree view of a customer begins with a few key considerations, such as:
Incremental modernization:
One of the most asked questions by the insurers is: Which core system (policy, billing, or claims) should be modernized first? These systems are the foundation and modernizing them can help extend their life and position them to meet heightened customer expectations. Instead of a full-scale transformation, incremental, step-by-step modernization can be initiated. Once the pilot is successful, the solution can be rolled out at the enterprise level. Based on the results of this enterprise-wide adoption, a similar strategy can be applied to the remaining core systems.
Data management:
Asking the customer for the same information multiple times or storing information incorrectly can affect the customer experience. That's why the acquisition and capture of data, and its integration into the transaction workflow, are vital. Organizing and managing clean, deduplicated, governed, and up-to-date data in a centralized workflow can help insurers meet expectations more effectively.
Integration with core systems:
Building modern UIs is easy, but the challenge lies in connecting the front ends to the complex core systems that manage mission-critical transactions. Modern architectural features such as APIs, microservices, and cloud deployment can integrate with digital channels and CRM tools, making seamless digital experiences a reality.
Adopting agile systems:
The era of monolithic systems is over. Component-based architectures, "microservices", are the approach to building more flexible, agile, and adaptable systems. These can help enable faster time-to-market for new products, integrate new technologies such as AI and cloud computing, and dynamically cater to multiple channels.
Alternatively, insurers can opt for a powerful, centralized CRM platform. It consolidates policy, claim, customer, and agent data into a single view that helps teams track leads, issue quotes, manage renewals, update claim status, and more within a single platform.
Benefits of a Unified Customer View
This approach goes beyond simply collecting data. A unified 360-degree customer view ensures enhanced data quality, accessibility, and usability across the organization. Here are some of the advantages:
Enhanced personalization: There are multiple customer touchpoints: online forms, mobile apps, customer service, and even IoT devices. A 360-degree, unified view consolidates these insights, giving insurers a holistic visibility into customers' needs, behaviors, and preferences. This can help insurers build more personalized marketing campaigns (pitching tailored insurance products based on claim history), close deals faster, and navigate complex queries effectively.
Streamlined claims processing: The manual, paper-based claims process is outdated. Self-service portals/apps give policyholders a window to register/file a claim proactively. Integrating an AI chatbot can help reduce settlement time because AI can gather information faster and resolve queries based on historical patterns. These cases can then be transferred to human claim adjusters for one final review. All the while, the customer is kept updated on the status in real time. Complex claim requests that require unique human judgment, nuance, and expertise can be routed directly to agents, reducing turnaround time.
Smarter underwriting and risk assessment: Underwriters can access a comprehensive profile, including past claim history and driving behavior (e.g., telematics data from vehicles), to more accurately assess risk before issuing a policy. Good behavior can be rewarded with reduced policy fees, thereby increasing customer satisfaction and promoting road safety.
Detecting and preventing fraud: According to the Coalition Against Insurance Fraud, fraud accounts for an estimated $308.6 billion in losses each year in the United States alone, mostly in property and casualty insurance. This underlines surging fraud in the industry over the years. Application lies (hiding health issues/income), faking claims (inflated bills, doctored accident images), or creating scams are common ways to commit fraud.
A unified 360-degree customer view is aided by consolidating disparate data, enabling the identification of suspicious patterns and anomalies that might otherwise go unnoticed. Clubbing this with an AI-powered data quality monitoring solution that auto-corrects data, eliminates duplication, and fixes incorrect customer identification can further curb potential frauds.
The Bottom Line
Traditionally, insurance companies interact with customers in multiple separate business areas. As a result, customer profiles and complaints were stored in isolated databases operated by different units within the enterprise. But that era is long over now. This rigidity can frustrate customers and lead to a disjointed experience. As more digitally advanced businesses enter the market each year, competition is bound to get fiercer. The rise of insurance aggregators has already intensified the competition.
Because customers expect speed, convenience, and personalization across every interaction. Customers don't care much about a business's age or its market expertise. All that matters to them is how a business makes them feel upon every engagement. New-age startups have been able to tap into this consumer psychology effectively, thanks to their relevance and mindset. Creating a unified policyholder record gives carriers complete visibility, enabling them to deliver more personalized interactions suited for the digital age. Insurers that invest now will be better equipped to earn trust and loyalty, compete, and achieve long-term growth.
