Escaping the Group Insurance Blahs
Introduction
Group insurers have a case of the blahs – at least that’s how their customers see it. The proof? A recent Cognizant survey on customers’ group benefits emotional connection revealed that 57% of group insurance consumers are unclear about how much their insurer cares about them. The same survey also revealed that another 19% are clear – clear that their provider doesn’t care about them or their families. Overall, the survey results indicate that most customers feel their group insurers are distant and uninterested. For the industry to shake off that dubious distinction will require reshaping member interactions into an experience that’s consistently dynamic, tailored, and feels good.
The High Cost of Low Perception
Negative customer perception is a big problem for group insurers. Not only does it depress benefit uptake, but it also severely limits insurers’ long-term potential to expand their footprint with existing customers. For roughly three quarters of today’s group insurance customers, the relationship is fundamentally broken and cannot be restored without significant effort. Reversing this trend requires carriers to rethink customers’ experiences. Cost pressure isn’t going away, so the march toward automation and omnichannel self-service will continue. Most importantly, it is critical to consider how your processes make customers feel. To many carriers, that’s a new dimension. For some customers, speed, automation, and convenience are the primary drivers of delight. For others – particularly those who are unsure what they need and how to get it – the human touch is paramount.
Consider our survey results regarding enrollment, which is an annual touchpoint that often sets the tone for customer relationships. We asked respondents to choose among several options that would help them feel good about their benefits elections. Forty percent selected personalization. Just 26% chose live interactive support, and among respondents who felt “not connected at all,” the figure dropped even lower, to 15%. Another way to view the results: for each of the options offered, only about a third of respondents thought it would make them feel good. This is very telling about the overall current mindset of group benefits customers, and how much work needs to be done by insurers to earn their trust and confidence.
Final Thoughts
What’s the upshot of our recent survey? That there’s no silver bullet that will meet all customers’ needs. Instead, it takes creating positive interactions that will allow the industry to shed its indifferent reputation. By tapping data to define groups of like-minded customers and giving them the experiences they crave, group insurers can put an end to the blahs and foster the deeper emotional connections that result in customer loyalty and long-term satisfaction.
For more information about how Vitech’s group insurance offerings can deliver personalized user experiences for customer satisfaction and long-term engagement, click here.
