InsurTech News

Liferay and IDC Release Report Analyzing Customer Experience Trends in the Insurance Industry

Liferay to Deliver Enterprise-Grade Digital Experiences to the IBM Cloud for Financial Services

Research Highlights the Role of DXPs in Improving Customer Experience

The insurance sector continues to be one of the largest investors in technology for optimizing business processes. In fact, IDC Research estimates that global IT spending in this segment will exhibit a Compound Annual Growth Rate (CAGR) of 5.1% through 2022, reaching 126 billion USD worldwide. According to a joint report by IDC and Liferay, the technologies most driving this growth are those relating to the optimization and improvement of customer experience (CX). Spending on CX solutions will grow 7.9% per year to reach 27.9 billion USD in 2022, when they will account for 22% of overall IT expenditure in the insurance sector.

Read More: ACH Network Annual Growth Rate Reaches 12-Year High

Digital Experience Platforms (DXPs) will play a key role in advancing the CX initiatives of insurance providers by acting as an intelligent core, helping organizations simplify and personalize user experiences within a fully interconnected ecosystem. DXPs further reduce friction for customers and enable a seamless user experience by making effective use of emerging technologies to support digital experience. In addition, they help develop customer relationships along the digital journey through the introduction of additional interaction layers, channels and technologies.

IDC research also reveals that 60% of insurers have a plan to implement personalized communications for customers. In order to simplify and customize these experiences, insurance companies must add intelligence to internal and external processes to better understand the customer journey and align their organization with the corporate mission, strategy and systems.

Read More: S3 Partners Adds Two Seasoned Sales Professionals From Hazeltree Treasury Solutions and ENSO Financial Analytics

Customers at the core

As in other market segments, the insurance sector must also evolve from a product-based mindset to one focused on the customer’s unique use case. Greater sophistication and understanding of buyer journeys will lead organizations to evolve from B2C (Business to Consumer) or B2B (Business to Business) strategies to B2Me (Business toMe) – marketing specifically to the individual customer. It is crucial for insurance companies to develop a relationship with each individual and customize marketing messages to meet specific individual needs. At the technology level, insurers need to tackle legacy systems and leave behind inefficient platforms and manual processes to achieve customer-centricity through digital platforms. Improvements in employee experience will also be a factor on the quest for customer experience excellence. Empowering employees in their interactions with customers and partners will ensure the customer is placed at the center of the organization.

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