The Digital Customer in the Insurance Sector: Beyond Self-Service

The insurance sector has made significant progress in digitalization, offering customers self-service tools that facilitate policy purchases, claims management, and access to documentation. However, digital transformation should not be limited to self-service. To stand out in a competitive market, insurers must go further and rethink their digital relationship with customers.

1. From Self-Service to Intelligent Personalization

Providing self-service portals is not enough. The real differentiator lies in delivering personalized and proactive experiences. Customers should feel that the insurer knows them, understands their needs, and offers only what truly adds value.

This translates into:

• Intelligent digital advice: AI-powered tools that analyze customer profiles, including the history, characteristics, and patterns of similar clients, to guide them in selecting the most suitable product. For example, if a policyholder requests a home insurance quote, the system could recommend additional coverage based on the type of home and specific risks in their area, rather than offering a standard proposal. Or, if they already have home insurance, they could receive advice on complementary policies, such as car or life insurance, enabling them to access a better quote for their insurance package.

• Real-time tailored offers and services: Using data and predictive analytics, insurers can anticipate customer needs and offer personalized solutions at the right moment. For instance, if a customer frequently travels abroad and the insurer detects that they have purchased a flight ticket, it could automatically send an offer for travel insurance with medical and cancellation coverage. Similarly, a policyholder with usage-based car insurance (pay-as-you-drive) could receive personalized discounts if their driving history reflects safe habits, such as smooth braking and predominantly daytime driving. Additionally, predictive analytics can improve claims management. If a customer reports home damage due to extreme weather conditions, the insurer could instantly provide repair options with trusted providers in their area, speeding up resolution and enhancing their experience. With this, insurers do not just react to customer requests but anticipate them, delivering value at the right time.

• Seamless cross-channel interaction: The ability to start a process on one digital channel and continue it smoothly on another is key to true omnichannel service. This ensures customers can interact consistently and without interruptions, regardless of the channel they use. For example, if a customer starts a medical reimbursement request on the insurer’s mobile app, they should be able to continue the process on their computer without re-entering information. Similarly, if they initially contact customer service via online chat, a phone agent should be able to access the conversation history to resolve the query efficiently. This cross-channel integration improves the customer experience by making it more agile and personalized.

2. Humanising the Digital Relationship

Digitalization should not mean eliminating human contact but optimizing it. Insurers can achieve a balance between technology and personal connection through various strategies:

• Virtual assistants with human escalation: Smart chatbots can handle common queries and facilitate processes, but they should also have the ability to escalate to a human agent when necessary. For example, some insurers use virtual assistants to answer policy and coverage questions, but if the customer requires more complex or personalized clarifications, they can be transferred to a real agent in real-time, ensuring they receive the necessary assistance without frustration.

• Video consultations and remote support: Personalized assistance via video calls is becoming a valuable option for complex claims or specialized advice. Some insurers now offer video consultations, allowing customers to speak directly with home or car insurance experts. This not only speeds up problem resolution but also adds a human touch, as customers can see and talk to a real person, making the experience feel exclusive and personal.

• Contextual and empathetic communication: Using AI to interpret a customer’s emotional state and adjust the tone and type of interaction can significantly enhance the user experience. Some platforms use algorithms to analyze customer responses and tailor the conversation approach accordingly, ensuring that if a customer expresses frustration or confusion, the chatbot adopts a more understanding tone and provides additional assistance, fostering a stronger and more positive connection.

3. Digital Experiences Beyond Insurance

Insurers should expand their digital value proposition to become key partners in customers’ lives through initiatives such as:

• Service ecosystems: Integration with complementary services, such as health, financial wellness, or mobility, allows insurers to offer added value. For example, some insurers collaborate with wellness apps that provide exercise and nutrition advice, offering policy discounts to customers who achieve specific health goals. This not only improves customer well-being but also reduces the risk of claims.

• Prevention and active safety: Apps that provide personalized recommendations to reduce risks and claims are becoming increasingly common. For instance, some car insurers use telematics technology to analyze driving habits and send alerts about risky behaviors, such as speeding or harsh braking, helping drivers improve their safety and lower their premiums.

• Gamification and digital engagement: Implementing loyalty and reward programs that encourage interaction with the brand can increase customer retention. For example, some insurers have launched apps that enable users to earn points by completing safety-related activities, such as taking defensive driving courses or attending accident prevention workshops. These points can be redeemed for policy discounts or additional benefits, fostering a more active relationship with the insurer.

Conclusion: Innovating to Stand Out

The insurers that lead digital transformation will not just digitize their processes but also rethink their relationship with customers, combining personalization, technology, and human experience. The key is not just allowing customers to manage their insurance but continuously delivering value throughout their lives.

Is your insurer ready for this new digital era?