The Sales Funnel Is Obsolete

Customers now have a number of ways to discover, research and purchase policies, so the customer journey has become less linear.

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--Insurance software solutions add meaning and value to the new, less linear customer journey in five ways: workflow optimization, improved policyholder experience, self-service capabilities, personalized risk mitigation services and omnichannel communication.


Although customer journeys are perpetually evolving, the rate at which they have changed in the insurance sector is nothing short of phenomenal. With the digital maturing of the industry paired with the shift toward customer-centricity, modern-day insurance customers or policyholders enjoy richer and more engaging experiences. In such a dynamic environment, cloud-based insurance software has been a blessing in keeping operations afloat. Such software for insurance companies lends agility to the business and keeps them resilient even in changing times.

Here’s a deep dive into how insurance industry software solutions enhance customer journeys.

See also: Tips for Improving Customer Experience

How Has the Insurance Customer Journey Transformed?

When it comes to the insurance industry, the traditional marketing funnel took prospects from initial product awareness to the point of purchase, drawing inspiration from nearly identical customer decision journeys. Traditionally, the usual customer journey adhered to a linear course and involved stages of awareness, familiarity, consideration, intent, decision and loyalty. Customers typically purchase insurance policies by researching potential brands and then narrowing down the options until they find the one that best meets their needs. 

However, modern customers now have a number of ways to discover, research and purchase policies. As a result, the customer journey has become less linear. The new purchase experience of empowered customers renders the traditional "sales funnel" obsolete. The modern customer journey consists of 5 broad stages: 

  • Awareness: Prospective customers realize the need to get insurance as insurance companies use tools and channels such as websites, email and social media. 
  • Initial Consideration: Potential customers consider various options based on brand position and recent interactions.
  • Active Evaluation: Customers research different insurance options and compare policies, coverage details and premiums across various websites and comparison platforms. 
  • Purchase: Modern customers use quote comparison websites and other tools to get instant quotes from different insurance companies. They select a suitable policy and complete the purchase, often without the involvement of any agent.
  • Post-Purchase Experience: Customers experience the insurance product or service and form an opinion or expectation. Post-purchase customer engagement is a crucial component of the modern customer journey.

5 Ways Insurance Software Improves the Customer Journey

We have different categories of insurance software considered by carriers and brokers depending on their usage. Some of them are: document management software, customer relationship management software (CRM), insurance workflow automation software, policy management software, claims management software, mobile apps for different stakeholders, etc. The following are five ways in which insurance software solutions add meaning and value to the customer journey.

1. Workflow Optimization

Insurance software streamlines the entire policy lifecycle, from creation and issuance to cancellation and renewals. Customers can use the portal to check the policy details and modify them as needed. A comprehensive software for insurance company management also automates a number of tasks such as quoting and policy approvals. This results in faster service for customers and improves customer journeys. Automation also streamlines customer onboarding.  

2. Improved Policyholder Experience

Self-service portals improve transparency and empower insurance policyholders. Policyholders can use the portals to find relevant information, resolve queries and get suitable suggestions. As such, the best insurance software solutions offer self-service portals to improve convenience and customer satisfaction.

Further, the data stored in insurance software can be used for personalizing each interaction with customers, right from marketing communication to customer support interactions. It improves customer engagement and boosts loyalty. 

3. Self-Service Capabilities

Insurance software can provide customers with intuitive self-inspection or self-service tools integrated into user interfaces or mobile apps. These tools guide homeowners through the process of conducting self-inspections by providing step-by-step instructions, checklists and visual aids. Such features facilitated by modern software for insurance companies help customers assess their property's condition, safety measures and potential risks, ensuring they provide comprehensive and accurate information to insurers.

4. Personalized Risk Mitigation Services

By harnessing insights obtained from telematics and connected devices, insurance industry software can offer tailored suggestions to reduce risks. For example, telematics can offer alerts to improve the safety of drivers and homeowners. Insurers can recommend specific safe driving practices to alleviate risk, potentially leading to perks such as discounted premiums. 

5. Omnichannel Communication

Insurance software enables insurers to manage interactions with current and prospective customers across multiple channels such as email, social media, chat and chatbots. This enhances communication flexibility. Insurance industry software also integrates with other tools to unify customer interactions across different platforms. Having a consolidated view of all customers enables insurers to offer consistent and personalized experiences at each stage of the customer journey. 

See also: Computer Vision Means Satisfied Customers


Customer journeys are changing rapidly in the insurance sector. Whether it is the diversification of communication channels or the need for personalization, such demands have been a driving force behind challenging the status quo. Most importantly, this transformation will not stop right when such needs are met; new ones will mushroom in due time.

Such a state of flux calls for capable and feature-rich insurance software tools that can handle such requests and implement appropriate solutions to elevate organizational capabilities and product or service offerings. 

Faheem Shakeel

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Faheem Shakeel

Faheem Shakeel serves as the practice head (insurance technology and services) at Damco Solutions.


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