Insurers must tap into technology to improve customer experience

Improving the customer experience, especially through leveraging data analytics, is among the key issues facing the property and casualty industry in the coming year, notes a new report from PricewaterhouseCoopers in the U.S..

The popularity of mobile technology and e-commerce have led customers to expect fast, convenient service, suggests the report, Top Insurance Industry Issues in 2013. Not all carriers are living up to the challenge, it notes, and competitive companies must invest in understanding customer needs.

“It is important for insurers to tap into technological advancements to stay current but also have an open line of interaction with clients,” Jamie Yoder, U.S. Insurance Advisory Practice co-leader at PwC noted in a statement.

“Revisiting customer experience programs, changing traditional distribution platforms, designing products that balance consumer and producer needs and differentiating value proposition through new models of advice will help open the door to new opportunity, business and profit.”

Taking on big data analytics, especially to improve customer experience, will also be key for companies looking at staying competitive, PwC suggests.

“Leading insurers are exploiting advanced big data analytic techniques to go beyond predictive modeling in an effort to simulate future scenarios and visualize the impact of their decisions on operations,” noted Anand Rao, principal in PwC’s U.S. Insurance Advisory Practice.

Embracing technology such as smartphone applications can improve operational efficiencies, but also improve customer services such as billing and claims handling and foster better customer relationships, the report notes.

“For companies in many industries, the benefits of migrating to electronic invoicing and payment include operational cost savings in bill presentment and collections, increased customer confidence and satisfaction, and a correspondingly better corporate image,” the report says.

“By combining a customer-centric view of the billing process and applying the most effective technologies and tools available, insurance carriers are significantly streamlining their billing processes, reducing costs, reducing errors and enhancing customer satisfaction and loyalty.”

The full report on the top issues for the industry is available on PwC’s website.