Industries spanning from tangible goods to intangible services have embraced digital transformation in the customer experience realm. Therefore, it is natural for customers to anticipate similar advancements in the BFSI sector, particularly within the insurance sector, which has traditionally involved cumbersome paperwork and lengthy procedures. Consequently, the industry is undergoing a customer experience revolution, with a heightened emphasis on loyalty and retention.
With increasing competition and the constant need to expand customer base, customer retention and experience management have transformed from being a good-to-have to a must-have strategy for the insurance industry.
Life insurance is undergoing a gradual shift from being a push product to one that is wanted by customers, primarily due to a change in perception. Simplifying products and enhancing financial literacy among modern customers has transformed insurance into a crucial component of their financial portfolio, transcending its former perception of being solely a tax-saving instrument. The digital initiative propelled by the Government of India, coupled with Insurance Regulatory and Development Authority of India’s (IRDAI) backing of innovative insurance processes, has ushered in an era of unprecedented opportunities for the insurance sector.
IRDAI has supported the industry with a customer centric approach thereby cultivating a robust marketplace, ensuring protection of customer rights, and a wide range of options being made available to consumers. This in turn has impacted every aspect of the life insurance journey, from product offerings to distribution, service, and complaints management.
Empowered by the support of regulatory bodies, the insurance sector has responded adeptly to meet the demands of its customers. Demonstrating resilience, it provided uninterrupted services and robust assistance to policyholders throughout the COVID-19 pandemic. This period marked a significant shift as the industry overcame traditional reluctance toward technological adoption, embracing innovative solutions for everyday challenges. Presently, insurance companies are actively strategising and harnessing diverse tools and resources to address evolving customer requirements. These endeavours are united by a shared objective: to emerge as leaders in customer experience.
Unveiling the mantra to success
Life insurers have decoded the reality that offering the best customer experience is the key to becoming market leaders. This realisation has led to an amazing amount of innovation in the space. Life insurance companies today are constantly innovating with ideas that would enable them to better service their policyholders and ultimately keep them safe and protected. This in turn leads to the following:
Enhanced understanding of insurance products
Insurers have initiated efforts to educate customers regarding the advantages of insurance products and the importance of early insurance coverage. HDFC Life’s ‘Klarify Life’ initiative exemplifies this approach, aiming to promote financial planning awareness among Millennials and Gen Z customers.
Tailored offerings and personalised communication
Through a combination of customised products and personalised interactions, insurers can build trust, foster long-term relationships, and position themselves as trusted advisors. At HDFC Life, we effectively use data to understand customer needs and preferences, and accordingly tailor the products and services. We are adopting an omni-channel approach to engage with our customers across service channels such as web, mobile, chat bots, call centres, email desks and our branch offices. This enables customers to interact with us in a way that is most convenient for them.
Fostering trust
Insurers are becoming more compassionate and customer-centric and are delivering on the moment of truths. At HDFC Life we are aware that the true test of insurers lies in offering hassle-free payouts. Thus, we aim at constantly finding areas of improvement in the claim settlement process to offer quick and seamless claims. Our instant claim initiative has made it possible for our customers to get their claims settled in hours.
Simplifying insurance processes for customers
Understanding insurance processes can be challenging. As part of industry initiatives to streamline journeys from new business to claims maturity, HDFC Life is committed to providing comprehensive support to our customers. From policy purchase to payout, we strive to simplify insurance products through easy-to-understand illustrations, videos, charts, and tables. Additionally, we offer a range of policy servicing options and aim to foster transparency through clear and effective communication.
Chief Operating Officer
HDFC Life
Increasing self-servicing avenue
Digitalization is a significant trendsetter, with insurers automating processes to offer more self-service options. At HDFC Life, we’ve empowered our customers to manage their policies conveniently through our portal, providing a one-stop solution for all policy-related matters right at their fingertips.
These gradual improvements in insurance processes are a proof that the industry is turning into an empathetic one for its customers. There will be innovation in the coming space with advent of AI and better technologies. However, the future will be all about delivering a delightful customer experience in a profitable way with a combination of technology and empathetic customer support round the clock.
