Modern technology is making it possible for people to increasingly take part in the insurance process through self-service. This is appealing to consumers for a number of reasons. Consider that the Youbiquity 3 Finance report found that policyholders increasingly want a self-service experience.
Further, another study found that 47 percent of insurance customers want a better online experience with insurers. Here are the top ten reasons why online self-service is the newest Insurtech breakthrough and something all carriers must acknowledge.
Smartphones have made it possible
Before smartphones came along, the opportunity for people to participate in insurance through self-service simply didn’t exist like it does today. Now however, people can buy insurance policies, manage them, and even settle claims entirely with their smartphones and innovative apps.
In most cases, insurance self-service allows customers to skip the step of going into an insurance office, or even speaking to an insurance agent on the phone. Through self-service, policyholders can get insured and resolve claims with remarkable speed.
For example, it can take as few as 90 seconds to get renters insurance through Lemonade, an Insurtech company. Further, gig economy platform WeGoLook facilitates the settlement of insurance claims by leveraging over 30,000 on-demand verification specialists across the United States. This is all achieved through innovative mobile applications and the growing desire for self-service.
Having more control over your finances and insurance makes us feel more independent. One source reports that 67 percent of customers would rather self-serve than speak with a representative. This reality also reduces overhead for insurers as they no longer require a network of agents spread across a wide national footprint.
75 percent of people in the same study as above stated that self-service is one of the most convenient customer service options. Considering that millennials often gravitate towards instant gratification and simplicity, it makes sense that many people would respond positively to insurance self-service.
Let’s face it: consumers enjoy improving efficiency. Using self-service to set up insurance policies, file claims, and do other insurance related tasks is a breakthrough regarding insurance efficiency. This is not only true for customers but carriers as well.
Avoiding being put on hold
We’ve all been there. Being put on hold can be very frustrating. In fact, customers hate it so much that as many as 60 percent of them hang up after being put on hold for just one minute.
Self-service in Insurtech can help to prevent people from being put on hold with customer service reps while they search for answers or deal with other customers. With self-service, consumers can do a lot of the things themselves. These same things they would otherwise have to call customer service or an agent for.
People like using apps
Smartphone users spend roughly 85 percent of their smartphone time using apps. Self-service options for Insurtech are premised on the usage of smartphone apps. So, optimizing app use for Insurtech self-service can help carriers capitalize on the fact that many people are accustomed to, and are fond of, using apps.
It saves insurers time and money
The more that insurance companies can get their policyholders to use self-service, the fewer people they need to pay to help policyholders. Self-service is a win-win for both carriers and policyholders.
Increased customer satisfaction
73 percent of consumers say that valuing their time is the best thing businesses can do for a great customer service experience. Allowing for self-service enables increased valuing of the consumers time.
It is a growing trend
From 2012 to 2014, web self-service increased from 67 to 76 percent. Companies who fail to offer self-service could soon find themselves losing customers to companies who do.
Self-service is emerging as the next trend in Insurtech and insurance services generally. It increases customer satisfaction, reduces costs, and speeds up the claims process. Indeed, Insurtech companies who can offer great self-service can stay on the cutting edge of the industry.
This post is part of our contributor series. It is written and published independently of TNW.