Time to make it easier to pay for insurance

As premiums continue to increase, data from Consumer Intelligence shows that increasing numbers of consumers are struggling to manage their insurance payment commitments as the cost-of-living crisis continues to constrict personal finances.

With the typical annual renewal cycles providing a natural point for policyholders to delve into insurance comparison sites, it stands to reason that PWC reports that 32% of customers switch providers after just one bad experience.

In the highly competitive market, insurers must ensure they create a compelling case for policy renewal, providing strong foundations for customer loyalty to grow and payments form a significant part of these customer experiences.
 

For insurers to maintain a competitive payment experience edge, they must cater for a range of customer preferences.

While industry practices are generally strong, our latest insurance sector study found 32% of consumers had experienced insurance payment failures in the last two years, while 35% faced difficulties when performing basic tasks, such as attempting to cancel policies.

To improve their retention rates, insurance providers should seek to facilitate customer-focused payment experiences, ease the administrative burden of managing policy payments and create stress-free customer journeys.

Creating premium experiences

As a payment is often the final stage of taking out a new policy, any negative experiences are likely to have a lasting impression on the policyholder’s overall experience. 

However, many solutions and options are available to ensure simplicity and consistency during this last step of the customer journey, allowing businesses to ensure user experiences conclude positively.

Payment portals integrated into the website allow insurance brokers to provide a seamless, unbroken process, reducing required steps to complete the purchase. 

Where redirecting customers to an unfamiliar page may make them think twice about entering their card or bank details, embedded payments allow branding throughout to remain consistent. 

By removing the need for customers to be redirected to a new window, or payment facilitators’ unique site, shoppers benefit from the convenience we all crave when completing online purchases.

For insurers to maintain a competitive payment experience edge, they must cater for a range of customer preferences. 

Consumer expectations have evolved with each generation gaining greater, and more frequent, exposure to technological advancements, and our data suggests there’s a real correlation between how different age demographics wish to make their premium payments. 

Whereas more than a quarter (26%) of policyholders aged 16 to 24 are seen to prefer mobile payment capabilities, just 3% of those aged 55-plus share this opinion.

 

The ability to facilitate a range of payment preferences means insurance providers can avoid alienating customers who would rather use traditional methods - such as over the phone payments. 

Effective digital payment solutions free up resources and contact centre staff’s time, enabling them to handle more complex queries, and place greater attention on the matters presented by non-digitally native customers.

As well as the immediate benefits, insurance providers will find that streamlined, customer centric systems will unlock a lifetime of potential value from younger policy holders, as good user experiences pave the way to brand loyalty and repeat custom.