Covid-19 has led to the rapid transformation of the insurance industry from manual to digital processes. Insurers and insurance agents have had to go digital to ensure that their business operations and core business functions keep running. And as the pandemic continues, there’s no way to tell whether businesses will ever go back to ‘normal’ operations. Therefore, we can safely conclude that digitization is here to stay.
But as we digitize our businesses, it’s important to remember that some crucial aspects of the insurance business will always require the human touch. We cannot do away with the claims department and the call centers, two key areas that handle hundreds of customer issues on a daily basis.
This brings us to the aim of this article. We need to ask ourselves this important question: as we digitize, are we thinking about creating a balance between digitization and the human touch? Where do we digitize, and where does the human element come in?
Where digitization works best
As discussed in my previous blog, customer expectations keep rising and insurance agents need to adopt digitization in order to meet them efficiently. A recent study by McKinsey also found that less than 5% of insurance agents sold insurance face-to-face after the covid-19 outbreak.
However, routine insurance tasks have been digitized to improve customer service and efficiency.
Some of the routine tasks that work well with digitization are:
- Product and price comparison: Digitization allows agents to easily navigate platforms like websites and mobile apps to make product and price comparisons.
- Sales: Digitization makes it easy for customers to fill out and submit documents using their smartphones or PCs. Agents can then print and submit the documents to the insurers. This removes the need for submitting documents in person.
- Claims: Digitization enables customers to submit their claims online instead of doing it in person.
- Reminders: Digitization allows us to automate reminders. For example, sending a customer a reminder to pay a premium or to renew their policy is something that can be automated
Why is digitization the best choice in these three scenarios?
- When making product and price comparisons, it’s a lot more convenient and faster to do it online than having to call different insurers to ask for their brochures.
- We’re living in a digital age. Tech savvy customers prefer to fill-out paperwork in the most convenient way possible. Therefore, instead of filling out forms in person, they might prefer to do it digitally.
- Customers who are filing a claim are already stressed because of an incident. Digitization makes it easier for them to file and submit online instead of coming to do it in person. Why ask a customer who has been involved in an accident to come file a claim when they can do it digitally?
When we need to bring in the human element
One of the most important roles of an insurance agent is to provide the human touch to customers. This role will not be changing just because some routine tasks have been digitized. There will always be the need to:
- provide guidance to prospects when it comes to choosing the best fitting insurance product and policy.
- provide reassurance to clients when their claims payments have delayed
- and to provide direction whenever clients or prospects are seeking for clarification..
In short, the human element comes in when people need customer service. This is something that digitization can only offer in terms of self-service, but not when people need to speak to an expert.
The balance between digitization and the human touch
Digitization should not just mean efficiency in operations. It should also mean efficiency in customer service. Therefore, for digitization to be implemented correctly, insurers and insurance agents need to remember that excellent customer service will always be top priority, and customer service means the human touch. That’s the point where digitization and the human touch will be balanced.
Agencify is committed to providing you with tips on how you can enjoy digitization and still maintain a human element in your insurance business. Please feel free to talk to our experienced experts, who have worked in the industries over the years. Send an email to contact@agencify.insure
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