The Importance of Customer Service in Insurance

No matter the industry, great customer service is imperative for a business to thrive, especially in the insurance industry. Many potential customers base their purchasing decisions on how responsive and benevolent an organization’s customer service is. Now more than ever customers want to be heard and want to know that they can get assistance quickly. Having excellent customer service can give a business a competitive edge. 

The Art of Mastering Customer Service 

Read below to learn why customer service still matters and how to improve it.  

Providing Different Avenues and Contact Options 

It’s imperative for customers to know how to get help quickly if an issue arises. Within the insurance industry, contact with customers after the initial consultation is often issue-driven so it’s necessary for them to have immediate access to customer service. There are several communication options an insurance carrier can offer their clients: email, social media, chatbots, and phone calls. 

Inform customers which communication avenues you offer. For some, they prefer to speak to someone directly if it’s a critical issue but, if it’s something minor, a digital format might be better suited. Chatbots have gained popularity as they offer a personal touch with minimal effort. Digital options can be a quick, effective, and stress-free interaction for customers. 

Maintaining Positive Relationships

Potential customers don’t want to feel like just another policy to their insurance carrier. Continuing a line of communication throughout the process offers a more individualized experience and can help ensure customer retention. The typical points of contact between issuer and customer are initial consultations and claim-based. Initiating and being proactive with communication can aid in maintaining a positive relationship between the customer and your business.

After the initial consultation, customers are often unaware of the new products their carrier is offering. Informing customers about products and services that would be a good fit for them adds a personalized feel. Issuers should focus on serving, not just selling. 

Reduce Barriers by Promoting Transparency

A common occurrence in the insurance industry is that customers don’t explicitly know what they purchased in their policy. The language used in products and policies can be challenging to completely comprehend for someone who isn’t familiar with insurance terms. Customers need to know exactly what their policy entails and that information should be readily available to them. Issuers should clearly explain to each customer what is covered and what isn’t covered. This could prompt customers to purchase a more comprehensive plan. 

One way to improve policy transparency is to inform customers of the commonly misunderstood areas within their services. Educating customers on their policies can prevent future complaints. Everyone appreciates transparency and it can promote a positive reputation. 

Faster and More Efficient Resolutions

Oftentimes when a customer is reaching out for customer service, it’s to address a problem. They might already be frustrated before they even make contact. Dealing with insurance claims is a major stressor for people’s lives and a faster resolution can ease their aggravation. Solving issues quickly and efficiently is a main component customers consider when finding the right insurance carrier. 

When a customer has a negative experience with resolving a claim, it might deter them from renewing their policy. Moving forward with issues and claims from an empathetic standpoint can improve their experience and humanizes the process. Customers want to be heard and cared for. 

Look Outside The Box

Customer services options aren’t a one-size-fits-all solution and can be a trial and error situation. Searching and trying different customer service models outside of the insurance industry can perfect current procedures. For example, the hospitality industry is customer-driven and might be an avenue to try. Looking towards the hospitality industry for guidance in this area can upgrade the customer’s experience and make it a bit more personal than just purchasing insurance. 

Restructuring your customer service model might be necessary if the current procedures are ineffective. Involve the agents, issuers, and representatives to understand their interactions with customers and collaborate on new ideas. The people who have direct contact with the clients and customers might have a better point of view on how to enhance this area.

Prioritizing The Customers’ Needs

Understanding customers’ needs is important to ensure that the customer service experience that is provided to them is tailored to address their problems or concerns. By prioritizing and listening to exactly what the customer is looking for can help to establish a clear line of objectives and understanding as to what needs to be addressed. 

If a customer feels as though they are receiving the right attention for their concerns, they will most likely stay in business with you in the long run. According to a survey conducted by Hubspot, 90% of Americans consider customer service as an important factor in deciding to do business with a company. If the customer service experience you offer is tailored to meet your customers’ expectations and needs in a timely manner, it can help produce greater results in the future for the organization. 

Inefficient Customer Service Reduces Customer Retention

The two top reasons why customers switch insurance carriers are cost and poor service. When a customer no longer feels valued and believes they can get better service elsewhere, that’s what they will do. 

Inefficient customer service can evidently reduce customer retention rates for your organization. If your customers feel as though they are not receiving the right attention or support for their needs, they may look elsewhere for their insurance needs. It is important to prioritize customer service to ensure this doesn’t happen, especially in the insurance industry. 

Positive Customer Service With Alltrust Insurance 

It’s no debate that positive customer service is key to ensuring the success of a business. By ensuring that your customer service process provides different options of contact, maintains positive relationships between customers and employees, promote transparency, creates faster resolutions to challenges, is creative and technical to fit any industry or type of customer, and prioritizes the customers’ needs, you are setting your business apart from competitors and establishing a path for growth. 

Customer service within the insurance industry can make or break the success of an organization, as well as the retention rates of customers. At Alltrust Insurance, we prioritize ensuring that our clients’ needs are considered, listened to, and addressed in a timely manner to ensure the success of the organization and to improve their quality of life as a whole. We understand the challenges some customers face, and we are committed to providing resources support for them. We can assist our clients in addressing their concerns, fast and easy. Contact us today to learn how we can help provide the ultimate customer service experience. 


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