Research Highlights Customer Experience Challenges in Small and Mid-Sized Insurers
A recent study conducted by Equisoft, a global digital solutions provider, and the Life Insurers Council (LIC) has shed light on the current state of customer experience (CX) and digital transformation within small to medium-sized life insurance carriers. The research surveyed one-third of LIC members to gain insights into their CX concerns, challenges, technology adoption, and future priorities.
The findings reveal that CX is the primary driver for digital transformation efforts in these organizations. However, despite this focus, 54% of respondents reported supporting only one or two communication channels for customer support. This limited channel support is concerning, as 34% of respondents identified staff interactions with clients as both a strength and a potential concern due to the prevalence of manual processes.
Key findings from the report include:
- 34% of respondents believe simplifying and standardizing application forms would have the most significant impact on reducing policy application times.
- 32% of respondents suggest automating data collection and validation as a crucial step in expediting the application process.
- 38% of respondents cite legacy IT systems lacking automation capabilities as the primary challenge in making underwriting decisions more efficient.
- 45% of respondents perceive self-service tools for brokers and agents as having the most significant impact on underwriting speed.
“Life insurance carriers aim to protect and enrich their customers’ lives, and they want this mission to thrive in the 21st century,” said Mark DePhillips, Senior Vice President, USA at Equisoft. “There are opportunities to enhance customer experience and engagement, but limited resources make it challenging to implement large-scale programs.”
Dean Lambert, Executive Director at LIC, added, “LIC carriers are committed to their customers and continually work to improve every interaction for greater engagement. However, they face significant challenges, including budget constraints and aging legacy systems.”
The research aims to help small and mid-sized insurers identify opportunities to create superior CX, develop strategies to capitalize on these opportunities, and implement robust technology and process foundations to support a new enterprise approach to client engagement.
For more information and to download the full report, visit: https://hubs.li/Q03nCSqj0
Equisoft will also host a webinar on June 19 at 12 pm ET, titled “How CX Technology Transforms Small and Mid-sized Life Insurance Carriers,” where CX experts and LIC members will discuss solutions and priorities for enhancing CX delivery. Registration is available at: https://hubs.li/Q03nCVzv0
