The insurance industry is changing: alongside fast-paced digitization of the insurance customer experience, insurers are dealing with changing demographics, unpredictable economic climates, and increasingly capable and crafty people looking to compromise data security.
Yet consumers don’t care. They demand great experiences and aren’t afraid to jump ship when their needs are not met. In fact, according to a survey by IBM, a full 41% of respondents said they had left an insurer because of a poor customer experience. Insurers’ number one priority must be customer satisfaction, or they’re doomed to fail.
As the demographics of insurance customers starts to include Gen X and Gen Y, customer interaction preferences are changing. A surprising number of millenials want to forego in-person or voice interaction entirely: according to J.D. Power, 27% of Gen Y-ers want to interact with their insurers entirely through digital self-service. It’s not just the youngest customer segment that wants this, either – substantial numbers of Gen X-ers (23%), Boomers (12%), and Pre-Boomers (6%) also want digital-only customer experiences.
The big problem here is scale. Though digital experiences provide massive amounts of data that can uncover valuable patterns and insights to help insurers make better decisions about their customers, traditional analytics solutions struggle with the unstructured data and non-standardized semantics these digital channels provide. And organizations can’t afford thousands of employees to sift through and make sense of the data — automation is key to keep operational costs low.
Cognitive computing will be the game changer that unlocks this potential. Through solutions that can understand natural language, learn and build knowledge, and communicate more naturally with customers than programmatic systems, organizations can create customer experiences that automatically engage with the customer, discover insights and understand customer needs, and make cost-effective, appropriate decisions for the customer — without requiring an expensive human-based process on the backend.
Kinvey partner VirtusaPolaris has already built a ready-to-go, prepackaged mobile app that leverages cognitive computing to redefine the insurance customer experience using our baas. Sara is an insurance risk advisor app and personal assistant that helps customers find the best insurance policy for their needs. Check out Sara in action:
Want to explore how cognitive computing can help your organization out-innovate your competitors and provide your customers with the digital self-service experience they’re requesting? Kinvey and VirtusaPolaris are hosting a joint webinar with Forrester analyst Ellen Carney, an expert on strategies, technologies, adoption trends, and best practices of property and casualty, life, group, and health insurers, on June 7.
Learn more about Kinvey’s mobile backend as a service today!