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It’s impossible to overstate the significance of the customer experience in the insurance industry. After all, customer satisfaction is one of the key reasons why people feel loyalty towards any company. But a lack of it is also a big reason for leaving. As such, customer experience can be a catalyst for insurer growth – if it’s done well.
For insurers, every customer interaction matters. A 2023 McKinsey report revealed the relatively limited exchanges insurance companies have with their customers, especially when compared to sectors like banking. With up to 10 times fewer customer touchpoints, insurers are under pressure to make every interaction count. Failure to impress can lead to customers hesitating to renew and leaving for competitors.
So, what can insurers do to ensure these interactions leave a positive impression? One key factor is to build a robust payment strategy. That might mean offering multiple payment options that match changing customer needs. But it’s also about providing a seamless experience that respects the customer’s time and circumstances.
By doing this, companies can improve the insurance user experience by turning routine transactions into opportunities for engagement and loyalty. In this blog, we’ll see how insurers can use their payment strategy to improve customer relationships.
How important is customer experience in insurance?
Impact client attitudes towards insurers. For example, research in 2023 found that 89% of insurance customers would leave a company if they had a poor experience. Likewise, two-thirds said a good experience would convince them to stay.
This shows that providing a great customer experience in insurance is not just an advantage. It’s now become a necessity. Customers have more options than ever before, with insurers providing service across many different digital channels. Every interaction is now a key part of the customer journey.
What does customer experience mean in insurance?
Customer experience in insurance is all about making the client’s process as smooth as possible. A good experience happens when insurers offer clear, helpful, quick service at every step – from onboarding to making a claim. An example might be letting customers manage their finances in a way that suits them best. This freedom is a vital differentiator, setting insurers apart from their rivals.
There are four key ways a payment strategy can help companies meet and surpass customer expectations:
- Improve the speed of payouts
- Provide automation and recurring payments
- Accept multiple currencies
- Give flexibility in payment methods.
In the following sections, we’ll explore these strategies in depth.
Insurance customer experience enhanced by instant payouts
A great way to become more customer-centric is to picture a client’s experiences. This helps understand common pain points by seeing how workflows and customer engagement strategies affect people outside the business.
Picture the scenario: A customer suffers a minor car accident. It’s a straightforward claim, so they expect a quick claim process. But instead, they face slow progress. They must complete forms, submit numerous documents and answer repeated requests for more information.
The slow advancement and constant follow-up needlessly add to their concerns over getting their car fixed. Fundamentally, they find it difficult to understand why the payout process would take so long. They’ve paid their premiums and expect insurance to be there for them. Failure to do so may mean they look elsewhere in future.
What is an instant payout?
One way for insurers to boost customer retention metrics is to provide faster payments. Through instant payout payment gateways, like Trust Payments’ Visa Direct, insurers can transfer funds directly to a customer’s bank in near real-time.
A 2022 Accenture study found that the speed of payments strongly correlated with customer satisfaction. The quicker payments were made, the happier customers were. To frame it another way, the longer payments took, the more negatively a customer viewed the interaction with their insurance provider. Instant payouts enable insurance companies to disburse claim funds with speed, giving customers instant financial relief when they need it most.
How do instant payouts work?
With Trust Payments’ instant payouts, customers can receive funds from insurers within 30 minutes. This method of same-day payout isn’t just about customers receiving funds quickly. Quick payouts build a foundation of trust and loyalty, showcasing an insurer’s dedication to customer care. By incorporating payment gateway instant payout solutions, insurers can transform a potentially tricky claim process into a stress-free experience.
Better customer experience with recurring payments
Recurring payments are a great way to enhance the customer experience. This method allows customers to set up automatic payments for their insurance premiums, ensuring their policies remain active without the need for manual payments. The beauty of recurring payments lies in their simplicity and reliability, providing customers with peace of mind and portraying insurers as dependable.
What is an example of a recurring payment?
A classic example of a recurring payment could involve a customer who opts into automatic recurring payments for their life insurance policy. This arrangement means their premium is automatically deducted at a set interval from their chosen payment method. They don’t need to worry about missed payments and policy lapses.
For the insurance company, this helps strengthen the customer relationship. Accepting recurring payments can help boost retention rates and revenue. This model ensures a steady income stream and decreases the likelihood of policy cancellations due to payment defaults.
Services like Trust Payments’ Account Updater play a crucial role in processing recurring payments. This service automatically updates payment information, ensuring that subscription payments are not interrupted due to expired or changed payment details.
What payment methods are used for recurring payments?
Insurers are increasingly turning to subscription payment gateways, enabling them to accept recurring payments efficiently. This setup supports various payment methods, including:
- Recurring credit card payments
- Direct debits
- Various payment methods that cater to customer preferences.
Incorporating a subscription payment gateway for recurring billing demonstrates an insurer’s commitment to using technology for their customers’ benefit. It makes life easier for them. This reinforces the insurer’s image as proactive and customer-centric. In short, accepting automatic recurring payments is a win-win for both sides.
Multi-currency support to boost customer experience
The ability to offer multi-currency payment options is an excellent way to improve the customer experience. Insurers make payments more convenient and also state their commitment to inclusivity.
One of the key benefits of multi-currency support is the elimination of the extra costs that come with foreign exchange fluctuations. Customers don’t have to worry about unexpected fees, making it easier to manage their finances with confidence.
For insurers, the adoption of multi-currency payments can also expand market reach. By accommodating the financial preferences of a global audience, insurers can retain clients who travel or move abroad. Likewise, they can attract new customers who require the flexibility that multi-currency payments provide.
What is a multi-currency system?
At its simplest, a multi-currency system allows customers to pay their premiums in the currency of their choosing. This simplifies the payment process for customers who live in different countries or who may be on the move — ensuring that their insurance policies are as hassle-free as possible. This level of flexibility is crucial in such a highly competitive industry, where customer satisfaction impacts both loyalty and company growth.
Flexibility in payment methods
Ensuring customers can use their preferred payment methods is another critical factor in enhancing the insurance user experience. It helps simplify transactions and boost customer confidence when interacting with insurers. Most of all, by accommodating a variety of payment options, insurers demonstrate an understanding of their customers’ diverse preferences and lifestyles.
Among the common methods:
- Credit and debit cards are highly popular, offering straightforward and familiar transactions
- Electronic funds transfer (EFT) allows direct bank-to-bank transactions that allow for timely and secure payments
- E-wallets add to the digital experience, enabling payments with just a smartphone.
Each of these methods caters to different customer needs – whether it’s the desire for security, convenience or speed.
Simplify the end-to-end insurance experience
For insurers, the key to selecting the right insurance payment method lies in truly understanding their customer base. Payment options should align with the preferences and habits of customers, making it as effortless as possible for everyone involved.
By giving policyholders, the freedom to choose how they pay, insurers reinforce their commitment to service and enhance the overall customer experience.
Conclusion
As the insurance industry grows increasingly competitive, the focus on improving customer experience is a top priority. Enhancing the customer experience in insurance with a robust payment strategy is one fundamental way to stay ahead of the competition.
Four essential factors go into a streamlined and convenient payment experience:
- Making faster payouts: Forcing customers to wait for payments creates unnecessary stress. Using quick payout technology, insurers can delight their customers and build loyalty.
- Allowing recurring payments: Letting customers set up recurring payments is beneficial for both sides. Customers can rest assured knowing their policy payments leave their account on a predictable schedule. Meanwhile, insurers benefit from improved cash flow and fewer lapsed policies.
- Accepting multiple currencies: Offering multi-currency payment options enhances the customer experience by simplifying transactions and showing inclusivity. It removes extra costs from currency fluctuations, easing financial management for customers. For insurers, it broadens market reach, helping retain and attract customers globally.
- Offering payment options: Offering varied payment methods enhances the insurance user experience by aligning with customer preferences. This flexibility caters to diverse customer needs, improving loyalty and the overall experience.
By integrating comprehensive, user-friendly systems, Trust Payments facilitates a seamless payment process that can help insurers elevate the client experience. With fast, varied payment options and a global reach, insurers can give first-class customer service that builds trust and loyalty. Contact us to learn more.
Frequently Asked Questions (FAQs)
CX, or Customer Experience, refers to the overall view and interactions a customer has with an insurance company. It covers every touchpoint, from first browsing insurance products as a potential customer to filing claims and receiving payments.
A high-quality CX in insurance means making omnichannel processes as simple as possible. It means clear communication at any point, and providing efficient service. It also includes offering convenience — such as flexible payment methods or recurring arrangements — that meet all customer needs. This enhances customer satisfaction while building trust and loyalty — which is crucial in such a competitive market.
In the insurance industry, customer experience trends are increasingly focusing on personalisation, digital transformation and providing a seamless service. Key movements include:
- Insurers leveraging technology to offer tailored policies, faster claims processing and interactive platforms
- The integration of alternative payment methods to provide convenience to policyholders
- Adopting chatbots and AI to provide 24/7 support, and handle queries and claims more efficiently.
This more connected and responsive service shows the need to meet modern consumer expectations, build loyalty and remain competitive.
To accept recurring payments online, insurers can use a reliable payment gateway that supports subscription-based transactions. This involves setting up a system where policyholders can authorise their insurer to deduct premiums from their chosen payment method automatically.
The payment platform should be secure and user-friendly. It should support various payment methods such as credit cards, direct debits and e-wallets. By providing this convenience, insurers streamline their online payment processes and enhance the customer experience. They also reduce the risk of missed payments and policy lapses.
A subscription payment is a financial arrangement where a customer agrees to pay for a product or service on an ongoing basis. In insurance, it refers to the regular payment of premiums. This allows policyholders to maintain their coverage without manual payments each time.
The subscription model benefits both the insurer and the customer by ensuring continuous coverage while simplifying budgeting and financial planning. Subscription payments rely on automated processes to charge the agreed amount at set intervals — usually monthly or annually. Overall, it offers a hassle-free way to manage and pay insurance policies.
