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

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