Key Themes

Improving CX through Technology & Personalisation
Data Utilisation & Consumer Insights
Digital Adoption in the Insurance Industry

Improving CX through Technology & Personalisation

In AIBP’s Innovation Survey, customer experience was a priority for 41.5% of enterprises surveyed in 2019. 5 years later, more than half of respondents (55.8%) believe that customer experience is one of their top priorities for digital transformation, showing a shift in how businesses view customer engagement.

We have explored how this focus has driven the way banks are developing new channels and products in Thailand, but what about for insurers? We sat down with a group of IT and business leaders from Thailand's top insurance companies to better understand the nuances of their industry and how they are shaping their organisation's strategy in shaping the customer experience.

The definition of customer experience in the modern business landscape has gone beyond traditional customer service to encompass the company's operational efficiency, employee satisfaction, and even distributor relationships.

Data Utilisation and Customer Insights

While digital channels offer unprecedented opportunities for engagement and personalisation, they also present challenges, particularly in terms of adoption among older demographics and in areas with limited digital infrastructure. To address these challenges and provide a seamless experience across all touchpoints, many companies are implementing omnichannel strategies. This approach allows customers to interact with a brand through multiple channels - be it in-store, online, or via mobile apps - with consistent quality and continuity. By embracing technology while maintaining a human touch, businesses can create a customer experience that is both efficient and emotionally resonant, ultimately driving loyalty and growth in an increasingly competitive marketplace.

In the era of big data, insurance companies are increasingly recognising the power of data analytics to transform their business models and enhance customer experiences. By harnessing sophisticated data analytics tools, insurers can gain deep insights into customer behavior, preferences, and needs, enabling them to design products and services that resonate more effectively with their target audience. This data-driven approach has fueled a growing interest in personalised insurance products, tailored to individual risk profiles and lifestyle choices.

However, the path to full personalisation is not without obstacles, as insurers grapple with challenges in data collection and navigate complex regulatory landscapes that govern data usage and privacy. Despite these hurdles, the potential benefits of leveraging customer insights are immense.

By systematically collecting and analysing customer data, insurance companies can inform their product development processes, refine their marketing strategies, and ultimately enhance customer engagement and satisfaction. This data-centric approach not only allows insurers to offer more relevant products, but also enables them to anticipate customer needs, proactively address concerns, and create a more dynamic and responsive relationship with their policyholders.

Challenges of Digital Adoption in the Insurance Industry

Resistance to digital tools among both agents and customers can significantly hinder the implementation of new technologies, creating a complex landscape for insurers to navigate. This resistance often stems from a variety of factors, including fear of change, lack of technological literacy, and concerns about job security.

For agents, the transition to digital tools may be perceived as a threat to their traditional role in the insurance process. Many agents have built their careers on personal relationships and face-to-face interactions, viewing digital tools as impersonal and potentially diminishing their value to customers. Additionally, the learning curve associated with new technologies can be daunting, particularly for seasoned agents who are comfortable with established methods.

On the customer side, resistance can be particularly pronounced among older demographics or in regions with limited digital infrastructure. These customers may prefer traditional methods of interaction, such as phone calls or in-person meetings, and may be skeptical of the security and reliability of digital platforms. The complexity of insurance products can also make some customers hesitant to rely solely on digital tools for making important financial decisions.

How to Overcome Barriers?

To overcome these adoption barriers, insurers must take a holistic approach that considers the needs and concerns of both agents and customers. This involves providing comprehensive training and support for agents, demonstrating how digital tools can enhance rather than replace their role.

For customers, insurers should focus on creating user-friendly interfaces, offering robust security measures, and providing options for human interaction when needed.

Implementing an omnichannel strategy can be particularly effective in bridging the gap between traditional and digital methods. This approach allows customers to seamlessly transition between various touchpoints, whether digital or physical, ensuring that they can interact with the insurer in the way that feels most comfortable to them. By integrating digital tools with personalised service, insurers can create a customer experience that combines the efficiency of technology with the trust and reassurance of human interaction.

Conclusion

Successful digital adoption in the insurance industry requires a balanced approach that considers the diverse needs of all stakeholders. By leveraging technology while maintaining a human touch, insurers can create a customer experience that is both efficient and emotionally resonant, ultimately driving loyalty and growth in an increasingly competitive marketplace.

Insuring the Future: How Thai Insurers Are Digitising CX Without Losing the Human Touch