Many retail insurers struggle to earn the love, appreciation, and loyalty of their customers. A concerning issue, according to a recent Forbes article titled: “How insurers can get their customers to love them?”
With customers perceiving little differentiation between insurance providers, companies often find themselves locked in a price-driven competition. This leads to a downward spiral of cost-cutting, profit erosion, and high customer turnover. The result? Commoditization.
In this blog post, we’ll dive deeper into this issue and explore how insurers can overcome it by fostering collaboration, tailoring risk analysis, and delivering exceptional service. Change your tag from ‘insurer’ to ‘service provider’.
Engaging beyond price
While price remains a significant factor in insurance, it alone cannot foster a profound connection with customers. To truly engage them, insurers must demonstrate collaboration that extends beyond the scope of insurance itself.
This is particularly evident in the realm of marine insurance, where customers’ needs for coverage cannot be commoditized. The risks associated with marine adventures are unforeseen, complex, and ever-changing. Simply selling insurance without providing a comprehensive risk analysis and a clear matrix of covered and uncovered risks is not enough to cultivate love for the insurer.
Tailoring risk analysis
When it comes to covering the risks of a marine adventure, whether for shipowners, charterers, or commodity traders, a product-driven insurance quotation falls short. Instead, insurers need to embrace a tailoring process of risk analysis. Unfortunately, it’s unlikely that marine insurers will readily take this route, as they primarily function as providers of financial security and capital rather than comprehensive service providers.
The importance of personalized service
To earn customer loyalty, insurers must deliver a level of service that goes beyond the transactional relationship. It’s imperative to engage customers on a personal level, becoming their trusted outsourced consultants.
This extends beyond the insurance quote, encompassing a comprehensive risk, legal and claims consultancy. Such services should not be limited to the insurance contract alone. They should cater to the needs of all risks, irrespective of whether they are insured or not, below or above the deductible.
Furthermore, exceptional service should be available both during and outside of office hours, demonstrating a commitment to customer well-being.
Collaboration and knowledge sharing
To unlock the true potential of customer love, insurers need to break free from their isolated silos and collaborate effectively. The collective knowledge and expertise available should be combined to empower a collaboration that surpasses the act of selling a product.
The real test lies in how well insurers can continue to serve their clients even after the initial sale. By fostering collaboration and sharing knowledge, insurers can elevate their service and differentiate themselves from the competition.
Love your customer and you will be loved back
Earning the love and loyalty of customers in the insurance industry is no easy task. However, by prioritizing collaboration, tailoring risk analysis, and delivering exceptional service, insurers can create meaningful connections with their customers.
The journey to customer love goes beyond offering mere financial insurance capacity. It involves becoming a trusted advisor and consultant, providing comprehensive risk analysis, and addressing all risks with care and attention.
By embracing these principles and focusing on customer satisfaction, insurers can transcend commoditization and build long-lasting relationships with their customers.