Insurance CRM: Facing Challenges and Applying Solutions

CRM Solutions,Insurance CRM, CRM for Insurance

Thanks to digital initiatives, the insurance landscape across the globe is undergoing a radical change. Digital disruptors and aggregators are forcing insurance firms to change their business model or face extinction. 

And change involves facing multiple challenges and more importantly, solving them with the help of insurance CRM.

Let's delve deeper into the challenges facing insurance companies and their workaround.

1. Customer focus on tangible returns 
Present tangible rewards are much sweeter than future intangible ones. This is the mindset of majority of customers when it comes to insurance. They view insurance with a prism of short term vs long term gains and drop it in favor on shorter ones. In emerging economies for example, tax savings, return on premium etc. are still the driving force behind insurance policy purchases. 

The workaround:
The trouble is mutual funds and other investment vehicles also offer the same goals. So how do insurance get the maximum share of the pie? By segmenting customers according to their demographics, income bands etc. previous premium payment history etc. This allows the executives to know which customer segment to target for cross selling and other initiatives. 

2. Lack of consistent experience 
Imagine you order two pizzas, one through a drive in and other through a call order. Both gives you the same products, but one is fresh and other stale. How will you feel?Pushing incorrect policies at different touch points will send confusing signals to your customers and prospects, thus leaving a bad taste.

The workaround:
Your customers should be able to enjoy the same delightful experience at every touch-points. Intelligent visual designers, inbuilt in CRM solutions, that help you create a delightful customer journey will aid you here. With its assistance, you can build custom journeys across channels that captivate and more importantly, gives the same delightful customer experience.

3. Agent attrition and consequences 
Insurance sector has been consistently listed on the top for agent churn. Poor training combined with a lackluster performance management tool kills any motivation to perform. What's more, customers themselves fall into hassle as the replacements have no idea about their profile. And without proper customer empathy, they will only be concerned about higher commissions and not greater customer engagement. 

The workaround:
Getting an easy on boarding process in place will go a long way in agent training. A centralized knowledge management repository will give access to training collateral as and when required. Guided scripts will ensure proper engagement with customers on calls while resolving issues or answering queries. 

4. Low customer reach
Insurance penetration is low in segments that needs them the most. The major contributing factors are:
1. Minimal customer awareness
2. Lack of trust
3. Bad publicity due to redressal/claim hassles.

The workaround:
Go for an insurance CRM that combines sales, service, social, marketing etc. into a single holistic platform. This will ensure that
1. You get to know a customer completely
2. Run targeted campaigns that has greater ROI
3. Empower customers to solve their problem themselves, resulting in almost instant issue resolution. 

5. Distribution hassles
Economies and geographies with vast and diverse characteristics have complex distribution challenges. With many areas, agency still remains the main source of distribution. But this channel is fraught with its own set of challenges, such as:
1. Rising costs
2. Low productivity
3. High attrition due to the nature of work
4. Heavy investments

The workaround:
Opt for a channel that ensures that customers get policies online within minutes. With the help of eKYC and seamless integration with verification agencies, the process can be made much faster and easier, even for prospects with minimum qualifications. 

6. Managing claims and fraud
Fraud is a major risk in insurance. Companies have to devise new ways to combat fraud, while at the same time, keeping claim process simple. It is not an easy balance to keep. Excessive scrutiny also hinders market penetration. 

The workaround:
Easy document submission and case verification abled by insurance CRM should help in reducing fraud. Complete profiling that involves interaction and transaction history, premium payment frequency should help. Analytics has even gone so far as to inbuilt online psychometric tests that determines a person's conscience levels. 

7. Coping with regulatory compliance 
As a result of the 2007 global financial crisis, regulators are increasingly getting tough on the financial services sector (of which insurance is a big part). New regulations (such as prohibiting insurers from rejecting claims after three years) have the likelihood of hampering the sector's margins. Manual compliance takes time, efforts and is a big drag on resources. 

The workaround:
Getting an insurance CRM that is already integrated with regulatory bodies for quicker and easy compliance. This indirectly increases efficiency and productivity. 

Challenges are a part of every industry cycle. Confidently face the insurance ones with CRM for insurance.