Increasing agent empathy with digital transformation in insurance

Insurance is more than just a financial product. It’s an invaluable tool for protecting things people hold most dear — like their family, business, and home.

When searching for an insurance policy, customers need expert guidance and personalized, empathetic service tailored to their unique needs. As more companies turn to automation to streamline operations, forging human connections with customers has never been more important. By leading with empathy, agents can ensure customers feel understood and valued in every interaction.

Barriers to empathy in the customer experience

The insurance industry faces several challenges as it tries to deliver more empathetic customer experiences.

In an IDC white paper sponsored by Samsung “Bridging the Digital-Human Gap: Strategies for Branches and Intermediaries – Insights from US Study on Modernization in Banking and Insurance¹,” 33% of insurers surveyed said their biggest challenge is ensuring customer satisfaction and retention through empathetic connections. Customers still grapple with too much complexity as they wade through insurance options. Confusing terminology, lack of transparency, and perceptions around limited coverage and customization are contributing factors.

There are also inherent issues with how work is structured in the industry. A customer may talk to a different agent every time they call. McKinsey research indicates 1 in 6 insurers never follow up after an initial call, and 40% of customers typically interact with two or more people. This may be because insurance providers face challenges in facilitating better internal collaboration.

In an IDC infographic sponsored by Samsung, Shaping the Future of the Insurance Agent: From Order Taker to Caregiver², 49% of U.S. insurers highlighted ineffective communication and collaboration among agents as a major challenge. Digital collaboration and communication platforms that facilitate seamless interaction between agents should be a top priority for insurance organizations. Yet only 40% of C-level insurance professionals acknowledged them as such.

The research also suggests the digital channels insurers use don’t fully address customers’ needs. In fact, 38% of insurers had concerns about customizing insurance policies to fit customers’ needs, and more than 30% of customers were not satisfied with their insurance company’s digital channels. They prefer guidance from a human agent, which further demonstrates how central empathy has become to the customer experience.

The value of empathy in insurance

Empathy is crucial for insurance agents because it can lead to positive customer outcomes.

Insurance is about reducing risks, but this can’t happen if an agent doesn’t understand a customer’s concerns. Asking the right questions can help agents identify what to incorporate into a policy to ensure a customer is adequately protected. This personalized experience can lead to greater customer satisfaction.

Empathy and personalization can also improve complex processes such as claims after a difficult life event. In these moments, empathy is vital for guiding them through the process as efficiently as possible and ensuring effective communication. In the IDC infographic, 38% of consumers perceived agents solely as sellers, citing they lack proactive support in post-deal closures. Agents who deliver detailed information, follow up with timely communication, and direct customers to additional resources can help shake off that seller stereotype.

The connection between agents and customers

Today, insurance companies seek technology and innovative solutions to automate tasks, allowing agents more time to address customers’ claims, answer policy questions faster, and deliver consistent results no matter who the customer speaks with. The shift aims to drive empathy, thus transforming agents from sales/claims to trusted advisors.

Using emerging technologies enables agents to be more agile and flexible, creating a better experience and removing some of the barriers previously stated. For example, there are solutions that boost productivity for agents, whether they use a desktop, mobile device, or both.  Access to customer data and guided workflows, wherever the agent is, can contribute to better customer engagement. Having access to customer profiles and policies at their fingertips allows agents to understand customers better and deliver a personalized touch.

To ensure consistent follow-up after initial calls, agents can utilize solutions for timely communications such as sending an email reflecting the initial conversation and offering policy recommendations that align with the customer’s concerns. Currently, nearly 4 in 10 policyholders say their policy doesn’t fit their needs, but technology can help agents address these concerns and deliver a more consistent and personalized customer experience — even if the customer has interacted with more than one agent.

When technology enables both agent and customer experiences, it drives more meaningful human connections and empowers agents to use their unique skills to solve problems. Customers want to feel their insurance provider cares about them and their needs. By prioritizing empathy in customer interactions, insurers can deliver a personalized experience that makes customers feel they aren’t just a policy number, but truly valued.

Looking to deliver a better customer experience throughout the insurance process? Contact one of our industry experts here. Sign up for our newsletter, INSIGHTS: Banking, a monthly update from Samsung on banking trends and technology’s role in the financial services industry. For a complete overview of all Samsung technology solutions for financial services, click here.

¹IDC White Paper, sponsored by Samsung, Bridging the Digital-Human Gap: Strategies for Branches and Intermediaries – Insights from US Study on Modernization in Banking and Insurance,#US52011624,May 2024.

²IDC Infographic, sponsored by Samsung, Shaping the Future of the Insurance Agent: From Order Taker to Caregiver,#US51998324,April 2024.