Clients Satisfaction

Relationship with the client: dialogue and understanding of their experience

Insurers must provide their clients with a complete and satisfactory experience that gives them differential value and thus they can stay competitive. To do this, they must focus on defining a customer service model that integrates various channels (traditional, digital, conversational platforms and mediators), taking advantage of all the information they can and have collected during contact with their customers.

Likewise, they must be able to identify and create relevant moments for each of their policyholders, taking into account their profile, the products contracted with their coverage, and manage them dynamically.

Once the insurance companies have already put the client at the center of their strategies, it is essential to go one step further in managing and serving the client: creating a relationship with the client, based on dialogue and understanding of their experience.

There are 2 types of key moments to manage:

1.Traditional: these are moments of economic and benefit significance of the relationship with an insurer, that is, hiring, use or renewal.

2.Emotional: these are situations in the life of the insured, which are related to personal milestones, hobbies or unforeseen events, in which the service or help of an insurance company is outside the contracted coverage, where its use can generate a truly differential link.

Identifying and creating emotional moments requires insurers to constantly monitor certain activities, trends or news. An example of this could be the monitoring of areas with a rise in car theft, which can generate a favorable moment to interact with the customer and thus offer a product with which they can protect their vehicle.

Creating relevant moments, as well as the customer service management that is done during them, requires constant communication, but you must be careful with the use of proactivity, since if it is used in the wrong way or misguided it can lead to be counterproductive. Let’s take these 4 key proactive points to better understand what we are talking about.

  1. Who to be proactive with? First of all, the people who have or are not predisposed to receive business contacts must be differentiated.
  2. Through what channels can I be proactive? Insurance companies tend to select communication channels with their insurers taking into account internal criteria such as channel availability and cost.

In spite of this, it is common for them to leave the client’s preferences “regarding” the communication channel with the company. The choice of the channel considering which was the one used by the client in the first instance or the one that he has been using most frequently according to the type of interaction allows the approach to evolve.

3. When to be proactive? The moment of contact should not only contemplate the temporal dimension, but also the theme and tone of the interactions that have occurred so far, especially the most recent ones.

4. How to be more proactive? The circumstance or the moment in which the contact with the insured occurs determines the type of attention and channel required for communication and / or attention. When it comes to identifying the type of care, it is essential to have a joint and complete vision of the client, which requires taking advantage of the information that insurers have today.

Clients Satisfaction

Customer Service as a protagonist in the differential customer experience

Today, the needs and demands of customers have changed a lot. We go from traditional clients to more digital clients, who browse the internet and are more specific when it comes to meeting their needs, approaching those companies that offer them what they so badly need: better experiences and prices.

Within the insurance sector, there has been a clear stagnation at the operational and evolutionary level, since despite being one of the oldest industries, it had been difficult for them to get out of their comfort zone. However, due to Covid-19, this evolution occurred in a hasty manner and without many hands that could lift the possible collapse that this entails.

The online environment brought with it cheaper prices, where the digital consumer had channels with products and services at a more competitive price. The customer experience has become the differential value of companies, and must even be at the same level as companies in other sectors, since customers, once they have had a good experience with a service or product, demand that degree of excellence regardless of the sector we are talking about.

If we talk about the insurance sector, the price pressure has had a really considerable impact. An example of this can be found in the auto branch, where the average third party insurance premium fell from almost $ 560 in 2004 to $ 395 in 2016, affecting the profitability of the business. To reverse this trend and break commoditization, insurers count on the customer experience as a key point.

In this same sense, the transformation that insurers have been undergoing has made it very clear that their new products must be oriented towards offering a new and better experience. A good customer experience through well-managed Customer Service has a positive and favorable impact on business results.

So far, the interactions of insurance companies with their clients have been distinguished by being occasional and only at times such as payment in the hiring or renewal or when a claim has occurred. Other sectors differ by establishing a more recurring relationship with their clients.

Therefore, it is vital that insurers take maximum care of the few contacts they have with the client, and even that they proactively try to create new moments of contact to improve the service provided. In this regard, technological tools will be decisive to enable and allow the service to be converted into a differential and promising customer experience.

Fraud Prevention

Insurance Fraud 2020: Impact of Covid-19

Frauds are nothing new for any industry that we talk about, however, the industrial sector that is most known for commonly suffering this type of crime is insurance, where unfortunately the insured also pay the consequences due to the increase in your cousins.

The impact of Covid-19 in the insurance sector, made it possible to establish new measures to continue operations, in addition to taking into account the detection of fraud during this contingency, establishment of a culture to fight fraud, the use of of RRSS to combat it, among others.

It should be taken into account that the rapid changes in the way in which insurers operate and fight against fraud had already begun before the Covid-19 pandemic occurred. Digitization and Artificial Intelligence are mechanisms that provide great potential to benefit insurance companies, despite this, scammers work to perpetrate a crime.

Key findings from the fraud study

It is known that Covid-19 forced 65% of insurers to focus on digitization, almost half of them focused on reducing costs and 30% increased their fraud controls. Working on fraud prevention is important, in addition to enabling a digital way of working, which is more prone to perpetrations.

However, the desire to move towards digital processes has not yet been fulfilled with the action. Many insurance companies surveyed still rely on their staff’s intuition and manual methods to prevent and predict fraud.

18% of claims have a fraud component

Pinning down an exact number of how much fraud has affected the insurance industry is difficult. However, it is pointed out that fraud represents approximately 10% of the cost of all claims, but respondents found that on average they believe that 18% of claims contain a fraudulent element, misrepresentation and inflation.

The most committed fraud during the Covid-19 pandemic were simulated accidents and car thefts, billing of ghost services or procedures, and bogus accidents that “happened” in people’s homes. Eliminating fraud has an unspoken payoff to the loss ratio and is the main reason respondents are willing to take new initiatives to their advantage.

Assessing claims in real time provides better customer service, making critical moments magical. Other benefits include better portfolio quality and investigator efficiency, plus real-time screening of incoming customers offers a better experience and greater loyalty.

As insurers drive digital change, it’s important to remember the importance of including fraud prevention as part of your digital toolkit. Real-time monitoring of risks and policies, fraud and claims throughout the processes, will make a healthy and convenient portfolio possible.


3 characteristics that make digital ecosystems poweful

The birth of digital ecosystems is synonymous with a symbiotic relationship so that companies can relate to others in order to achieve greater value for them, more than they could obtain by themselves. There are many examples that we could mention, such as Apple, when launching the Healthkit app where its users share health and activity data, thus helping the world of medicine, hospitals and doctors, to inform about the patient in addition to carrying out studies, development of products, among others.

In this article, we will explain the three most relevant characteristics of digital ecosystems, which are key to understanding the risks and benefits they present:

1.Symbiotic integration: these arise from the fact that digital ecosystems authorize users to connect and interact with each other (an example of this can be a social network), and access through marketplaces, products and services from various providers. In the same sense, facilitating these connections is one of the main activities of the vast majority of ecosystems and that is why its value increases as the number of participants and their level of involvement increase.

2. Access doors: digital ecosystems play an important role as a kind of access door to products and services from other markets. An example of this could be application stores, which establish the conditions for creating and distributing messaging applications, mobile payment services or games. Sometimes they also serve as access doors to web search portals, where users access the media, electronic commerce or travel reservation services.

There is no doubt that digital ecosystems make possible a certain degree of control over other products and services, in addition to spreading into related markets, thus allowing the network to grow around consumers.

3. Big data: thanks to the services offered by companies, they can obtain a large amount of data about their users, which helps to improve the quality of services (for example, by personalizing their commercial proposals), thus developing new and better features. With this they manage to increase the participation of users and obtain new ones, collect more data and have a continuous improvement of their value offer, in addition to strengthening their position within the market.


Machine Learning in Insurance

Currently 84% of large companies use Artificial Intelligence and estimate that by 2020 the total number of companies will adopt Machine Learning as a user experience optimizer (UX).

In LISA Insurtech, this is one of our biggest challenges, to delight our clients (Insurers) and their clients (Insured), that is why we have a specialized area in UX, the previous thing since according to a study carried out by Tata Consultancy Services ( TCS) companies that have already invested in Artificial Intelligence, are now seeing the fruits, since they have increased their profits by 25% and reduced their costs by 20%.

Machine Learning is one of the applications of AI that gives systems the ability to automatically learn and improve the experience without having to be programmed, in addition to controlling at the top of the evaluation that avoid late analysis.

One of the main objectives of Machine Learning is to know in detail the behavior of users, and in this way to detect how to improve the user experience (UX or User Experience). In this article we will talk about 2 ways in which Machine Learning focuses on optimizing the user experience.

– Predictive data analysis

The recommendation systems based on Machine Learning algorithms offer a beneficial value for the users and, in the case of the insurance industry, they can predict their attrition rate, Fraud, purchase intention and others.

On the other hand, predictive analyzes help us to better understand the needs of users, which allows us to develop different products and services as it allows us to customize the offer to specific needs.

– Learn from the results

Machine Learning allows us to make changes in real time in the actions of the insured and anticipate their needs. On the other hand, learning from the results will allow us to grow and develop skills that will benefit us in the future.

Thanks to Machine Learning we can plan the company’s resources, develop predictive systems on customer behavior and customize communications, generating greater value in users.

In this era, technology is responsible for optimizing processes. What do you expect to integrate Machine Learning as a user experience optimizer (UX) to your company and increase your profits and reduce your costs?

In LISA we use this and other high-level technologies to add value to the industry, thanks to this type of tools we reduce the operating cost of claims management by 60%, do you want to know more ?, Contact us!


What does Insurtech mean?

The accelerated growth of new technologies under the eaves of traditional businesses has been generating acronyms that end in “Tech”, Ex. Health technology businesses are called HealthTech, financial technology businesses are called FinTech, this is how the technology businesses of The insurance industry is called Insurtech. Many times the Insurtech being a relatively new segment are protected under the umbrella called Fintech.

In this regard at the DIA Amsterdam 2019 event, Mckinsey launched 3 mega-trends, where the third one points directly to the aforementioned paragraph, the call for collaboration between traditional insurance companies and technology companies with specific work within the chain of value of insurers. Ref. Megetrends.

Today the Insurtech are growing by leaps and bounds especially because of the advantages they generate to the business or insurance company that adopts them, in this regard at LISA Insurtech we see a general dismantling of the insurance value chain. As this happens, new partnerships and collaborations should be formed to meet the best needs of customers. An example of this is the association between insurtechs and traditional players. Many Insurtech’s are focusing on specific functions throughout the value chain and are achieving higher profitability levels for these specific functions, which makes them active collaborative partners.

In the case of LISA, Insurtech has specialized since its inception in the automated management of claims, reducing 80% of the settlement time and saving 60% of the handling cost. You want to know how, contact us!


Policyholders support the use of AI in exchange for improvements in functionality: part 1

Thanks to the arrival of the digital Age and all the digital changes that this brought with it, many companies, even the most traditional ones such as insurance, have been exploring technologies that are useful to them to persist, develop over time and meet expectations of your customers.

It is known that investment in digital tools for life and health insurance in the insurance sector has increased in recent years due to the exploration of technologies such as Artificial Intelligence (AI) in its operations. According to Fintech Global, in 2018 alone, 3.18 billion dollars were invested worldwide, a figure that almost doubled the investment in 2017.

Why invest in AI?

1.Faster, data-driven decisions.

2.Deeper understanding of risk.

3.Better customer experience.

However, while consumers are cautious about the use of AI within insurance companies, confidence increases online by exposing AI devices to homes. Customer-driven design and faster responses will make the difference in gaining consumer support.

An insurance company, by harnessing the power of AI, can improve existing processes and create a new product proposition to lean toward a particular market. For insurers, Artificial Intelligence will help transform their life insurance experience.

By being able to better understand a customer, an insurer will be able to offer them a product or service that is tailored to their individual needs.

You are right! This topic is somewhat extensive, and we do not want to leave without inviting you to read the second part where we will delve a little more into Artificial Intelligence and the impact for the industry and its consumers. Wait for her!


Why the Insurance Companies need to transform in the digital age?

The pandemic made it possible to expose one of the insurance industry’s greatest weaknesses: its digital and technological capabilities. Insurers continue to work with their rudimentary system, which translates into the use of many forms to complete, telephone calls, among others.

The resistance of the insurance industry when it comes to the implementation of digital technologies is marked and as we see an increase in digital adoption in other companies, we can know that insurers not only run the risk of being left behind, but that they could also become obsolete with other companies offering insurance as an added service.

The Insurance Companies must pay attention to their clients expectations

Insurers have not lived up to rising expectations, in fact, simple insurance purchases require lengthy questionnaires, extensive evaluations, and channel changes.

The customer experience is becoming a key competitive weapon and insurers must keep up with the expectations of current customers, which are focused on digital and related channels. For some time now, customers have become millennials, which represents a total adherence to technology.

Covid-19 has challenged and generated growth opportunities for companies to offer better customer service. An example of this could be that as a consequence of the health contingency due to Covid-19, the requirements of car insurance changed due to altered mobility needs, there are even many insurers that offer reimbursements based on the reduced use of vehicles.

Currently, what should the Insurance Companies take into account to offer a better experience?

1. Commitment: Understanding the interests and experiences of customers, helps the company to design and offer solutions that will be more valued. Providing relevant offers over time and in the channels that people most frequent is the way to improve customer opinion and boost engagement.

2. Empowerment: insurance companies need to strengthen their clients, allowing them to access superior and relevant information to make better decisions. Thanks to this, insurers will be able to establish a relationship based on trust.

3. Emotional connection: this characteristic originates from the result of the combination of ethics and social responsibility of companies, the way they treat their employees, the causes they defend and their experience in building relationships. Showing and maintaining authentic care for both employees and clients increases emotional connection.

In order to keep the insurance industry competitive, insurers must engage with policyholders in the way they respond, train them with relevant and up-to-date information, and demonstrate that they care about them. In the urgency to digitize and adopt new technologies it is also important that the insurance industry take advantage of its ability to personalize its customer service.


Discover the impact of the Customer Journey in the insurance industry

In the current uncertain but incredible panorama in which society has been rapidly transforming, driven by digitization and globalization, the consumption habits of people and, therefore, of industries, have been experiencing an unprecedented change.

Among the sectors most affected by this change, we find insurance, where the crisis, the new lifestyles of policyholders and competition, driven by technology, have forced and pressured insurers to reinvent themselves and find new ways of deliver value to customers.

In that sense, the Customer journey plays an indispensable role since it is about the experiences of a consumer during the process before and after the purchase of a product or service. In the insurance industry, the almost unique way to improve the customer experience is through interactions made through customer service.

Consumers today are looking for something else, if we compare what the customer experience was like years ago, today there are many more intangible products and services that are associated with experiences.

In the insurance sector, we acquire a service in the event of accidents of various kinds, which we can “feel” at the time of the claim. The profitability of insurance companies depends on the retention of their clients, which is why it is essential to achieve loyalty through experience.

Loyalty in the current era is based on knowing the needs of the client, in order to offer them a complete and satisfactory experience that provides them with differential value.

To do this, we must focus on the following key points:

  1. Define a Customer Service model that integrates the different channels (traditional, digital, robotic channels, conversational platforms and mediators).
  2. Identify and create new points of contact, using all the information available about your customers through the different sources of information.
  3. Establish a data collection and analysis strategy that provides a deep understanding of the client.
  4. Offer a value proposition to intermediaries that improves their adoption of the changes involved in offering the customer a differential Customer Service.
  5. Design a model that has the necessary tools to address the challenge of creating a differential Customer Service and leading cultural change within the company.