In Wake of COVID-19, CX/UX Important for Insurers to Establish Direct Relationship with Consumers, Says Novarica

Most insurers agree that Customer Experience/User Experience (CX/UX) CX/UX is about providing agents and policyholders with both short-term and long-term positive experiences: Novarica

Boston, MA (Aug. 25, 2020) – Customer experience/user experience (CX/UX) is commonly understood as an important part of digital strategy, but approaches, resourcing, measurement, and focus vary widely within the insurance industry. In a new report, Insurer CX and UX: Approaches and Current State, research and advisory firm Novarica presents the results of a survey of 79 insurers across Novarica’s Research Council and Community, concerning attitudes and practices related to customer experience and user experience.

“For insurers, CX/UX is still a new and emerging discipline,” said Paul Legutko, VP of Digital Marketing and Analytics, and lead author of Novarica’s new report. “Insurers —especially life insurers—need to develop a distinct CX/UX strategy, given the need for brands to establish a direct relationship with consumers in the wake of COVID-19. The key elements of a CX/UX strategy would include ownership, scope, and criteria for success and would be designed to encourage dialogue among the diverse teams who provide touchpoints to agents and policyholders.”

Among the key findings of the reports are:

• Marketing and tech/digital teams are most likely to own CX/UX. Life insurers tend toward marketing, while P/C insurers tend toward tech/digital.
• Most insurers measure CX/UX through user satisfaction and Net Promoter Score. Digital traffic and user adoption are also used. Few insurers tie CX/UX directly to revenue or retention.
• One-third of insurers have no dedicated CX/UX resources. While only one in ten insurers has no organizational commitment to CX/UX, one in three have no dedicated resources.

Click here for the table of contents or to access the report.

Report Summary

This report presents the results of a survey of 79 insurers across Novarica’s Research Council and Community concerning attitudes and practices related to customer experience/user experience (CX/UX).

CX/UX is commonly understood as an important part of digital strategy, but approaches, resourcing, measurement, and focus vary widely within the insurance industry. Most insurers agree that CX/UX is about providing agents and policyholders with both short-term and long-term positive experiences, but others have a broader scope that includes internal stakeholders and non-digital channels.

Topics:

• Ownership and Resourcing
• Focus Areas: Stakeholders, Channels, and Disciplines
• Measuring Effectiveness
• The Effect of COVID-19 on CX/UX initiatives
• Insurer Size/Sector Differences

Click here for the table of contents or to access the report.

About Novarica

Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and more than 300 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. For more information, visit www.novarica.com.

Source: Novarica

Tags: coronavirus, customer experience (CX), epidemic, Novarica
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