Digital processes are increasingly integrated into the insurance customer journey, with more than half of leading UK insurers implementing AI chatbots to streamline customer operations, according to Altus Consulting’s ‘Digital Bar’ report.
Despite these advancements, Altus Consulting’s data indicates a stagnation in the evolution of online customer journeys post-Covid. Even top-performing insurers still face challenges in delivering a fully digitalized experience.
Mark McDonald, General Insurance Practice Director at Altus Consulting, comments, “Since we started this research nearly ten years ago, we have seen an increasing number of insurers embracing digital channels for more than just quote and buy, up from 75% in 2015 to over 98% now. Yet, there has not been a substantially noticeable difference in the digital experiences customers had 5 years ago compared to now.”
He contrasts the insurance sector with other industries, noting: “Looking outside insurance into other verticals, such as retail, entertainment, and banking, we are seeing increasingly digital-first experiences for the end consumer, tailored around the consumer’s needs. But insurance customer journeys are still broadly the same.”
McDonald emphasises the need for the insurance industry to leverage AI more effectively, stating, “The challenge is to embrace AI, use it as a tool across the insurance industry, and reinvent the value chains that underpin our organisations.”
He continues, “At its most basic, insurers should use it to augment existing processes, driving efficiencies, crunch large volumes of data and provide customers’ immediate support needs. This would see immediate benefits to the customer journey, whilst building a longer-term ROI through improvements across the insurer operating model. Ultimately, this will drive both back-end process improvements and enhanced customer experience, increasing retention and improving operational performance.”
