For insurance providers, policyholder engagement is everything.
Reason being is because unengaged policyholders — like those who don’t read your emails or interact with your mobile app — are much more likely to churn.
When you consider that, on average, it costs insurers 7 to 9 times more to attract a new policyholder than to retain an existing one, it quickly becomes clear why keeping your policyholders engaged is so crucial.
This blog post will explore some of the insurance communication best practices you can implement to ensure your policyholders are fully engaged with the service you provide and understand the value you bring to them.
Let’s get started!
Adopt an Omnichannel Strategy
First things first, to connect with policyholders today, you need to take an omnichannel approach.
Consumers today are used to handling everything in their lives via multiple digital channels, and they expect the same when it comes to managing their insurance needs too.
It could be updating an address, requesting policy details, or seeking customer support – whatever the interaction, customers want to be able to do so on the channels they’re most comfortable with.
Providing an omnichannel communication experience – with channels like SMS, WhatsApp and chatbots integrated together – ensures you meet policyholders where they are and encourages higher engagement.
It also means that no matter where or how a policyholder interacts with your business, their experience remains smooth and efficient, helping reduce friction and increase satisfaction.
Think of an omnichannel strategy as the glue that binds all the other facets of your policyholder communication together, keeping everything cohesive and connected.
Personalise Every Policyholder Interaction
Personalisation is key to making your policyholders feel valued and understood.
It’s about more than just addressing them by name, it’s about using the information they’ve provided you with to make every interaction more relevant to them.
Take policy renewals for example.
Instead of sending a standard reminder email, you could send them a personalised rich-media SMS mentioning recent life events they’ve informed you about — like buying a new car or moving to a new home.
This shows the policyholder that you’re keeping tabs on them and being proactive, rather than treating them as a number.
Replicate this level of personalisation across every interaction and you’ll have a customer base that feels listened to and appreciated – both key ingredients for building engaged policyholders.
Simplify Complex Insurance Processes
Some insurance processes can feel overwhelming for policyholders, especially when they involve lengthy forms, unclear instructions or industry jargon.
Simplifying these interactions reduces frustration and makes it easier for policyholders to take action when it matters most.
Think about your claims process…
If you make it difficult for policyholders to upload documents or receive updates during the claims process, you risk frustrating them unnecessarily.
This often leads to them turning to an agent for help and clogging up your phone lines.
But if you simplify your claims process by leveraging automated communications, you can avoid those frustrations all together.
Sending secure links with instructions that guide policyholders through how to submit a claim, submit documents or receive status updates at each stage streamlines the policyholder journey.
And it’s not just a nice-to-have either…
Over 65% of insurance customers expect real-time communication for claims processing, meaning if you don’t keep them in the loop, then you risk losing their trust and engagement entirely.
Implement Chatbots and Conversational AI
Handling growing enquiry volumes while maintaining the personalised service policyholders expect can be a challenge.
This is where chatbots and Conversational AI (CAI) step in, offering insurers a scalable solution that enhances efficiency without sacrificing the human touch that policyholders crave.
By providing 24/7, multilingual support, customer service chatbots give policyholders the opportunity to self-serve and get answers to common questions that would previously require a phone call or ticket being lodged.
Imagine Conversational AI as your policyholder’s live support agent that can speak their language, remember previous interactions (better than any human could) and – perhaps most importantly – doesn’t log off at 5pm.
Let’s look at a real-life example.
Picture a customer trying to contact one of your agents to obtain their policy details after having an accident while driving home one night…
It’s late, they’re stressed, and they’re stuck on the side of the road – worse still, English isn’t their first language and they have a hard time communicating without assistance!
With no customer service agents available that speak their native language, it’s easy to see how this situation could become more distressing than it needs to be for the unfortunate policyholder.
But having a Conversational AI-powered chatbot on hand would help make the experience much smoother for the policyholder.
By texting a set number, they could be sent a secure link to converse with a chatbot in their native tongue, ask it questions about their policy details and be given advice on what do next.
This tailored, immediate support option empowers policyholders in moments of urgency, reducing stress and ensuring they feel valued no matter their circumstances — all while lightening the workload for your customer service team too.
Actively Seek and Act on Feedback
Policyholder engagement isn’t a one-and-done effort.
It requires constant attention to meet changing policyholder expectations.
Actively seeking feedback allows you to fine-tune your processes and maintain relevance over time.
For example, after sending out a quote, you could send a quick SMS survey asking about the policyholder’s experience: Was the communication timely? Was the quotation clear? Were they able to communicate via their preferred channel?
Once you’ve collected that feedback, it’s about showing you can act on it.
If policyholders mention frustrations with unclear quote updates, ensure you streamline your messaging and communicate the improvement.
Closing the loop demonstrates that you’re listening, which strengthens trust and reinforces loyalty.
By making feedback an ongoing dialogue, you signal that your commitment to policyholder satisfaction extends well beyond their initial interaction.
Proactively Communicate During Critical Moments
From your policyholder’s point of view, you’re their safety net when life’s unexpected events occur.
Whether it’s a car accident, natural disaster, or IT outage, these are moments when your policyholders need to hear from you the most.
While many factors affecting your policyholders may be out of your control, how you communicate during these times is entirely within your grasp.
Proactive communication can make all the difference.
If there’s an upcoming storm or service disruption, notifying policyholders in advance via SMS or app notifications reassures them that you’re aware of the situation and ready to assist.
During the crisis, keep them updated on claim processes, the support available to them, and any temporary service changes.
By actively communicating during critical moments, you demonstrate your commitment to engaging with policyholders in ways that matter, building trust and loyalty long after the event is over.
Power Your Policyholder Engagement with Soprano’s Communication Platform
If you’re serious about improving your policyholder engagement, Soprano’s all-in-one communication platform is the solution you need.
Some of the world’s largest insurance providers use our platform to communicate with their customers, distribution agents and claims teams – driving revenue and operational efficiencies.
With advanced messaging capabilities including conversational AI and RCS Messaging, we help you automate complex processes at scale to help create a more engaged customer base.
If there’s an area of your organisation that could benefit from better communication – be it claims processing, policy renewals or urgent support – Soprano can help.
Get in touch with us today to arrange a personalised platform demo.
