Insurance: A CX Late Bloomer’s Guide to Success
The Canadian insurance industry is undergoing a transformation driven by technology integration and evolving consumer needs. Insurers are embarking on generative AI for fraud detection and customer service, while emphasizing empathy and protection coverage. Such initiatives have created an impact on end customers resulting in an increase in likelihood to recommend (NPS ®) Canadian insurers from (-12) in 2022 to (-5) in 2024. This improvement signals an uplift in customer sentiment, but nevertheless, the industry still sits with a negative score, and trends consistently behind other sectors, indicating further room for improvement.
Insurers have made strong progress building trust and processing claims, especially with increased digitization. However, there is an opportunity to build stronger connections. To differentiate, insurers should focus on prioritizing key experience drivers such as clear and personal advice, easy-to-understand products, a straightforward claims process, creative rewards, all of which demonstrate true value for money. Ipsos’ CSI Insurance study indicates that customers don’t always feel valued and proud to be a customer of their insurer. Providers need to move beyond transactions by addressing customers’ emotional needs through the six forces that influence attachment: Certainty, Fair Treatment, Control, Status, Belonging, and Enjoyment.
Enhancements like personalized policy guidance, seamless digital interactions, timely support, and consistent communication can transform relationships with customers from one of apathy to genuine partnership. Additionally, empowering customers with tools and resources to avoid claims and ultimately achieve their policy goals can create a more engaged and loyal customer base. Canadian insurers must move beyond meeting basic needs by enhancing the overall customer journey and creating lasting emotional connections.
Download our detailed, 13-page insights paper featuring recent research and for strategies Canadian insurers can leverage today.
