Insurance customers crave the same convenience and ease when navigating insurance processes as they already enjoy in their other digital experiences. Yet, many still face frustrating delays with claims processing, struggle to access policy information or spend precious time on hold waiting to speak with representatives.
Accenture reports that 61% of insurance execs say shifting consumer preferences have accelerated their embrace of insurance technology trends. Insurance mobile app development investments are already beginning to pay off in the form of happier customers. According to the J.D. Power 2024 U.S. Claims Digital Experience Study, overall satisfaction with the digital insurance claims process for auto and home insurance is up 17 points from 2023.
Insurers focusing on mobile-first solutions, including self-service tools, can better meet customers’ expectations for a modern digital experience.
Insurance customers prefer self-service options
As traditional paper-based processes and phone-heavy interactions have become outdated, insurers have improved their self-service offerings to satisfy customer preferences. Self-service claims handled digitally via mobile apps and automated processing have increased over the last few years. Capgemini has found that 78% of best-in-class life insurers offer self-service portals.
Leading insurers are investing heavily in insurance mobile app development, specifically by creating comprehensive mobile apps and customer portals that put control directly in their customers’ hands. These self-service tools let policyholders quickly file claims, update coverage, access policy documents and receive instant quotes.
Virtual assistants powered by AI and automation can give customers instant answers to their questions, quickly guiding them through the process so they know exactly what to expect. These steps can now be taken without a lengthy phone call, allowing customers to return to their busy lives in short order.
Because this type of customer self-service software streamlines the insurer’s internal processes, it also reduces operational costs, minimizes human error, and frees up staff to handle complex cases that require human expertise and discernment.
Insurers are using AR and VR to innovate the CX
Forward-thinking insurance companies are even beginning to explore how insurance technology trends like augmented reality (AR) and virtual reality (VR) could create even more immersive and efficient customer interactions. For example, AR could allow customers to capture detailed snapshots of property damage using their mobile devices, with intelligent software remotely guiding them through the documentation process using visual overlays for faster claims processing.
Virtual consultation platforms offer another significant advancement, letting insurance advisors guide customers through complex policy decisions with interactive visual aids and real-time document sharing. These advanced technologies make expert guidance more accessible while maintaining the personal touch many customers value.
Health insurers are already using VR for health screenings. Cigna has offered patients a holographic-enabled game called BioBall, which captures their biometric data like pulse and heart rate as they capture images on a screen while holding a light bowling-size ball. Insurers could also use VR to create virtual scenarios that help commercial clients identify potential hazards before they become costly claims.
The future of the insurance customer experience
PwC cites an increasingly digital and AI-driven world as one of the top five trends affecting the future of insurance in 2025 and beyond. Predictive analytics and artificial intelligence (AI) will play a major role in this transformation. Insurers can use these advanced technologies and data from various sources to create more precise customer profiles. With these insights, they can offer customers proactive policy adjustments and personalized risk management recommendations.
AI and analytics will also support more advanced fraud detection and risk assessment capabilities, leading to faster claims processing and more accurate pricing that customers will appreciate. As insurers continue on their digital innovation path, maintaining robust security measures will become increasingly critical to protect sensitive customer data and ensure compliance with new privacy regulations.
Insurers are embracing digital innovation
For insurers ready to embrace digital innovation, the opportunities are clear. Those strategically embracing insurance technology trends like self-service platforms, AR, VR, and AI will ideally be positioned to meet customers’ expectations for a smooth, frictionless experience. In doing so, they will be able to earn increased customer loyalty and maintain a strong competitive position in the market.
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