The Future of Insurance: 20 Stats That Show Customer Experience is Vital

20 stats insurance

In a fast-changing and increasingly competitive industry, insurance carriers must put the customer experience at the center of their business strategy.

Previously, insurance carriers focused only on delivering a strong product. But with the rise of new technologies, it’s not enough for insurers to just have a product that delivers. They must also focus on delivering a strong omnichannel customer experience. Giving customers the option to quickly and easily file a claim on their smartphone while also providing live customer support could mean the difference between a positive customer experience (and insurance renewal) and a negative one.

But don’t just take it from us. Here are 20 statistics from industry leaders that illustrate how that the future of insurance depends on customer experience.

Customer experience is important to digital insurers

The future of insurance depends on excellent customer experiences. This is fully demonstrated in our first set of stats.

For example, personalized services boost an insurer’s retention rate to an incredible 81% according to Accenture. What’s more, personalized services can boost engagement by 89%, ensuring that customers stay connected with insurers. Other relevant stats, including a recent survey by Bain, reveal how customers value insurers who promote ESG initiatives.

It’s clear from these stats that superb insurance customer experience can benefit insurers and customers alike.

1. When insurers offer personalized services, the customer retention rate is 81%

2. Insurers offering personalized services can boost customer engagement by 89%

3.  80% of customers are enthusiastic about insurers that connect their product to broader environmental, social, and corporate governance (ESG) initiatives

4. Across the globe, 59% of customers wish their insurers would offer rewards for healthy living

5. New CX initiatives are being developed by 85% of insurers to improve customer journeys

The current state of insurance

A plethora of options exist for insurers to elevate customer experience and use technology to revamp the insurance value chain.

Consider virtual assistants or chatbots, a service that can provide 24-hour support to customers instantly—especially for frequently asked questions. Omnichannel experiences between physical and internet destinations likewise build trust and improve CX.

6. Virtual assistants are in use by only 16% of insurers, but 38% of consumers find value in AI-based communication

7. Omnichannel experiences are prioritized by 11% of decision-makers as a way to deliver quality experiences for customers

8. 53% of customers wish to have an in-person experience before purchasing an insurance product

9. 50% of insurance customers surveyed believe that digital channels do not currently provide clear information about insurance products

10. By 2025, there will be an estimated one trillion connected devices

Customer preferences

Customers desire clear communication with insurers across digital and in-person channels. Certain generations prefer digital experiences over brick-and-mortar locations, or customer service that can be reached by text versus over the phone, but all customers value the variety of opportunities that an omnichannel insurer can provide.

11. Positivity is key for insurance CX. One negative experience is enough for 50% of customers to switch to a competitor

12. 75% of customers expect companies to leverage new technologies for improved interactions

13. Digital experiences are popular across generations. Among customers 55 and older, 71% want to process claims through digital platforms, like voice or chat, instead of in person

14.  Seamless omnichannel engagement—experiences that continue across multiple devices and in-person—is valued by 42% of consumers

15. 50% of customers place high priority on personalized digital communications from insurance companies while only 17% of insurers currently prioritize personalization

16. 69% of customers would share relevant personal data for a lower premium from insurers

17. 70% of drivers want pay-as-you-drive insurance, where the less you drive, the less you pay. This style of insurance is increasing in popularity

18. 58% of insurance companies have increased their budgets for digital innovation

19. Balance between digital and in-person assistance is crucial: 49% of customers believe a human advisor is more trustworthy in filing a claim than an automated service or a chatbot

20. Customers are tightening their belts due to inflation and checking online for comparison shopping. Forrester predicts policy lapses will increase by 20% in the coming year

The future of insurance customer service and customer experience

Providing great customer experience is vital to insurers to stay competitive. Learn about how customer experience is changing across multiple industries, including insurance, in this guide by Mendix CEO Tim Srock, Improving the Customer Experience: Business Necessity and a Potential Goldmine.