Insurance Technology Featured Article

FICO Global Survey Points to Customers Wanting More Digital Engagement

March 14, 2014

FICO, one of the world’s top analytic software companies, has recently conducted a global survey regarding consumer demands for insurance companies. This survey revealed that many consumers are looking for change in the models that insurance companies engage their customers.

As more industries become digitalized, people, especially among younger crowds are beginning to expect the businesses that they use to deliver updates through digital means. Banks have especially jumped onto the digitalization of customer engagement, with options like mobile banking apps and the ability to receive statements through email. Some businesses send updates such as bill reminders through SMS.

FICO’s global survey has shown that insurance companies have been falling behind when it comes to digital engagement. The survey showed that 65 percent of those surveyed have never used their smartphones to interact with their insurance providers. While many insurance companies do have apps and mobile websites, they are rarely comprehensive, and do not attract users.

However, it seems people do want to use their mobile devices more to manage their insurance. With people growing more used to digital models of customer engagement, they also want those same services with their insurance companies. According to the FICO global survey 55 percent of those surveyed would like to receive reminders about their policy renewals through SMS or email. Fifty two percent of those surveyed would also like to receive messages about policy changes. Of those surveyed, it’s no surprise that those who were between the ages of 18-24 were most interested in SMS reminders. Older age groups still showed an interest in these methods of customer engagement, however those over the age of 40 seemed to prefer emails and post mail.

Russ Schreiber, the manager of FICO’s insurance practice, believes that mobile engagement is an important key to customer satisfaction. Insurance companies can build apps that allow basic policy management, and will send customers alerts when needed. According to Schreiber, doing so would lead to higher ratings and thus higher sales.

Not all companies are out of the loop though. Some have been creating apps that are popular. Geico’s insurance app is an excellent example of this. The Geico app allows users to manage their insurance, and provides them with a digital ID that can be used as proof of insurance. The app also includes a help accident guide that will help users get everything together in the case of an accident. Geico also offers an option to receive SMS alerts. 




Edited by Cassandra Tucker

Article comments powered by Disqus

Related Insurance Technology Articles

Report: Canadian Insurance Market to Focus on Technology in 2015

Business processing services provider Xchanging Insurance Services recently announced the results of an industry survey it completed regarding the Canadian insurance market. To complete the survey, it partnered with Insurance-Canada.ca, which completes seminars and survey to help inform consumers and insurance professionals about the latest in technological innovation in the insurance market. [ Read More ]
11/24/2014

Certifi to Deliver Improved Billing and Payment Management Through SaaS William Platform

Inefficiencies in medical billing costs the U.S. healthcare industry billions of dollars annually, and as another government program, the Affordable Care Act (ACA) or Obamacare, gets integrated into the system that number is surely to rise. A study conducted by Harris Poll on behalf of NerdWallet in August of this year revealed hospital billing errors are resulting in overcharges of up to 26 percent. The number of errors for Medicare medical billing was all the way up to 49 percent, meaning almo… [ Read More ]
11/24/2014

Nominating Committee for 2015 Novarica Research Council Impact Awards Announced

For those on the technology implementation and management side of the insurance industry the research and advisory firm Novarica is no doubt a very familiar one. The company provides information, insights, and perspectives to industry professionals on a variety of topics and hosts the Novarica Insurance Technology Research Council, a moderated knowledge-sharing community of more than 325 senior IT executives representing more than 300 North American insurers. [ Read More ]
11/19/2014

Kofax to Improve Claims Processing for General Insurance and Asset Management Provider

Improving the business processes associated with mission critical insurance interactions is at the top of most insurers' lists regardless of where they are located around the world. An example of the universality of the need to improve such processes through software automation, which not only improves business process efficiency but also reduces costs while improving the customer experience, is a recent announcement from business process automation specialists Irvine, CA-based Kofax. [ Read More ]
11/19/2014
FREE Insurance Technology enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!