The insurance business is a highly competitive one and it involves selling a product that many consumers consider a commodity. The struggle to attract and retain customers in the insurance industry is becoming even more real especially with aggregator sites getting more popular. Insurers therefore have to differentiate themselves in the eyes of their customers, especially when they interact so irregularly with them. In an era when consumers across markets expect high-touch, personalized service, insurance, by its very nature, remains a low-touch industry where most of us in Singapore only ever consider it once a year for necessary renewals such as our hospitalization plan or car insurance.
Customer loyalty as we know is good for business. Insurers that manage to win the loyalty of their customers ﬁnd that they not only stay longer, but buy more products and potentially recommend friends and family to buy from the same insurer. Higher loyalty means lower churn, and that can helps to reduce costs and expand margins. Insurers have made concerted efforts in recent years to build customer loyalty by embracing digital platforms, retraining employees and redesigning customer journeys. Based on a Bain & Company’s third global survey, it showed that insurers that concentrate on building loyalty can gain considerable ground—as much as 20 percentage points in Net Promoter Scores over a three-year period. Conversely, insurers that lose focus can ﬁnd their loyalty scores slipping by similar margins.
We believe that the key to customer loyalty for insurers is the need to master the basics of customer relations. Insurers must be accessible, accurate, fair, fast, empathetic and most importantly reliable. Insurers then have to think in terms of the full spectrum on their customer journey. Based on a survey by Morgan Stanley, it showed the shortcomings of the online insurance customer journey.
With the advancement of digital tools and the rise of insurtech and healthtech startups, insurers can easily through the right integrations significantly improve their customer experience for the stages with negative Net Promoter Scores, inspiring customer loyalty. So yes, we believe it is still possible to inculcate customer loyalty in insurance today. Understanding the value of customer loyalty to insurers, Insuree is primed to help provide the means for such an integration by first bridging the gap between the largest distribution channel of insurers—insurance agent network, and their customers.