
Insurance 2030: From customer worst to customer first
Carriers know the insurance customer experience must improve. We describe how they can move from customer worst to customer first.
Most group carriers are taking a conservative approach to their strategy and operations, changing pragmatically and incrementally. They’re dabbling with digital transformation in some key functions, typically claims and policy administration, but not on an enterprise-wide scale. They’re also making relatively modest investments in simplifying benefits administration, enrollment technology and data exchange options. And to enhance the user experience, they’re making light user interface (UI) updates and deploying basic chatbots to address claimants’ transactional needs.
As we note throughout this Insurance 2030 series, a gradual and piecemeal approach to strategic and operational change is not a recipe for success. Market leaders are thinking more transformationally, redesigning their business and operating models to put employers and their employees at the center of everything, offering appealing and integrated products, easy to use channels and a frictionless claims experience supporting that goal. Supporting this approach will require:
Neglecting the claimant experience is a losing proposition. Employers know that keeping employees productive means keeping them focused on work, not on their benefits.
Accordingly, employers are looking beyond traditional “product factories” and seeking out carriers that can help them attract and retain talent via health and financial wellness programs, consultative support, and coaching. Group carriers therefore must think beyond their traditional systems and processes to design experiences that meet member and workforce preferences. This means providing members a robust ecosystem of hire-to-retire offerings to keep employees happy and productive at work and both predict and reduce absenteeism. It also entails drastically simplifying how employees access, learn about and use their benefits, especially in the life events that matter most.
What will this customer-first approach look like in reality? It will be a one-stop, digital experience for all products and services. Here’s an example.
Rebecca is in an accident bicycling to work. She suffers a compound leg fracture and loses a front tooth. She immediately has surgery to repair the break. The next week, after she’s back home and undergoing a months-long physical therapy regimen, she’s taken to a dentist for a tooth implant.
Rebecca submits accident details to her insurer using a digital, AI-enabled claimant portal that has easy-to-understand language and guidance with a clear view of all the benefits available to her. The portal features a one-time submission of claim information that triggers her health, dental, accident, hospital indemnity and short term disability policies, as well as her Family and Medical Leave Act and Americans with Disabilities Act accommodations. Instead of having to contact multiple providers to figure out coverage details in a traumatic time, Rebecca can focus on healing and eventually getting back to work.
An aging industry workforce and challenging labor market have motivated many P&C carriers to start automating (including via genAI) basic transactional and administrative efforts, which in turn is complementing their attempts to focus on providing higher value services. In comparison, group carriers are behind the curve on modernizing their operations. To enhance employee productivity and offer high-end claimant experiences like Rebecca’s, unified, data- and analytics-driven digital functions and processes are an absolute necessity. Here are some areas that can benefit the most from these enhancements.
Here’s an example of how operational modernization can enhance workflow management.
Greg is a leave manager with a team of six specialists. He reviews his digital ops dashboard every morning to understand his team’s capacity, utilization and throughput, and to inform how he assigns specialists cases based on their skill level, productivity and workload. This enables Greg and his team to maintain an efficient workflow while meeting client and claimant quality and service expectations.
Putting the customer first. This is much more than building a flashy website. It’s designing your business around members and their employees to offer them appealing, integrated products and services. On a practical level, this means providing members an ecosystem of hire-to-retire offerings and an ease of use that keeps employees happy and productive. Their resulting satisfaction will be the driving force for your profitable growth.
PwC’s Bonnie Majumdar, Rob Walker, Jim Quick, Mark Rosenthal, Haley Wellener, Catherine Nolan and Marie Carr contributed to this report.
Carriers know the insurance customer experience must improve. We describe how they can move from customer worst to customer first.
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