Post Blog: Keeping up with customers

In the age of smartphones and mobile devices, most insurance companies struggle to keep pace with the technological savvy of their own clients.

Customers want the same access to the most up-to-date information they have with their bank or wireless provider, and they want it on the platform of their choice. So how can insurance companies meet these high expectations?

There is technology available that can help insurers provide customer self-service, increase satisfaction and reduce churn.

The concept, known as real-time publishing, provides instant access to information for the customer. In addition, the information can do more than improve relations.

Suppose a flood is expected in a region with a significant number of policyholders. The insurer can use Twitter feeds, Facebook posts, text messages or even emails to provide an early warning notification to customers in the affected region.

Receiving a text message that tells them to stock up on canned goods is a great way to make customers feel that their insurer is looking out for them.

Real-time publishing can pull information in real time from any other system in the company.

In one instance, an insurer pulled information from its first notice of loss system, fed it to its real-time publishing system, and sent a text message notifying a customer that his daughter had been in a car accident. The insurer notified the policyholder of his daughter's mishap before she did.

However, the model does not come without challenges. The insurance industry is highly regulated and any new offering must be compliant with local laws and company policy.

In addition, self-service comes with other risks. Perhaps the biggest is the baseline level of service. No insurer should ever promise something they can't deliver. Customers should not be told that they will receive policy documents within 24 hours if it takes 36.

In spite of the risks, the rewards can be significant. Closeness to the customer is critical in preventing churn. As long as the customer feels loved and cared for, they are less inclined to leave.

Since it typically takes three to five years before a customer becomes profitable, it's crucial to keep them as long as possible.

The real-time publishing world is one that customers already inhabit, and insurers need to take steps to keep up with them.

James Mullarney, senior director of product strategy, Oracle Insurance