For insurance carriers, delivering exceptional customer experience (CX) has never been more critical.
Executive Summary
The complexity of insurance products and distribution models, combined with historical underinvestment in digital capabilities and CX initiatives, has made it difficult for many insurers to keep pace with evolving customer expectations. However, these challenges also offer a significant opportunity for those insurers that proactively address these issues—differentiating themselves in the market and establishing CX as a lasting competitive advantage.Here, a CX professional reviews some of the steps that his company, American Modern, has taken to complete its CX transformation while influencing corporate culture at the same time.
Today’s policyholders expect personalized guidance, seamless omnichannel interactions and frictionless journeys—standards set by their experiences with leading digital-first companies across industries. With shifting consumer preferences, rising competition and economic uncertainty reshaping the market, insurers must evolve to meet the demands of a diverse, tech-savvy customer base or risk losing ground to more agile rivals.
A 2023 McKinsey study on customer experience in the insurance industry revealed that CX isn’t just important—it’s a game-changer. (Source: Elevating customer experience: A win–win for insurers and customers | McKinsey) Insurers with top-tier CX scores consistently outperformed their competitors in revenue growth, shareholder returns, and even employee and agent satisfaction. The study also found that CX can help streamline operations and improve overall efficiency. By prioritizing CX, insurers can boost customer retention, attract new business and optimize their operations for long-term success.
