Two years into the COVID-19 pandemic, it’s still unclear what the full extent of its effects will be. Life insurance companies, as with so many industries, have had to adjust to this new normal. Now, life insurance companies are moving towards an underwriting process that centers on the customer experience. But what will these changes look like?
Increased reliance on digital interaction, higher numbers of claims and customers, and a customer-centric approach will all be necessary for insurance companies to move into this changing future. If they can adapt properly, they’ll be rewarded with customer appreciation and employee loyalty, while maintaining core values that any organization can take pride in.
A renewed focus on the customer experience
As COVID-19 has forced many companies to conduct more of their business online, insurance companies have followed suit. Having a larger and stabler digital infrastructure can make life easier for customers and underwriters, especially when claims can’t be processed in their typical fashion.
For many life insurance companies, this could mean investing more in claims systems that can handle higher volumes of customer traffic. It could also take the form of improved data collection and analysis to better assess the needs of customers.
Online policy shopping
COVID-19 has created a stronger reason for customers to handle much of their insurance needs digitally. More customers will research, shop, and purchase policies online, meaning underwriting and sales will need to adjust accordingly.
It’s possible for insurance companies to deploy automated chatbots and other web services to simplify the shopping process. Once these services are in place, underwriters will have an easier time adjusting to the changing needs of customers.
Handling high volumes of claims and purchases
The pandemic has seen an unprecedented increase in medical emergencies and health issues. Because of these changes, the amount of life insurance customers and claims will also increase.
Underwriters need to be prepared to handle a larger number of claims, and the proper workflow and infrastructure will need to be put in place to help them. Increased digital automation for customer service or updated claims systems are only two ways that life insurance could adjust.
As all companies are now in uncharted territory, life insurance companies will also need to get creative in how they can adapt their underwriting process to the developing needs of
their customers. Health risks need to be accounted for when considering in-person scheduling, not to mention a need to adapt to supply chain and infrastructural issues.
If life insurance companies can understand how COVID-19 will permanently change the insurance landscape, they will be one step closer to building a closer relationship with their customers as well as securing a more stable future for the constantly shifting road ahead.
Name: Michael Bertini
Job Title: Consultant
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