Leaders compare notes on role of customer experience in insurance growth

Experts at the IA Forum revisit the importance of customer choice in tech adoption.

Nearly everyone in Malaysia wants their insurance policy as detailed as possible. However, key decision factors still focus on the cost of coverage.

Brought to the fore by the latest Capco survey were factors which influence Malaysia’s purchasing decisions. These include affordable premiums (46%), meeting customer needs (38%), and value for money (37%), whilst the top priorities in selecting an insurance provider are speed of services (51%) and reputation (43%). 

The findings highlight the potential for data and analytics to drive innovation and address Malaysia’s protection gap amongst the underinsured and uninsured. The survey also shows strong interest in personalised insurance products, with at least 70% of respondents favouring tailored options. 

About 72% of policyholders prefer purchasing insurance through representatives, emphasising the need for seamless omnichannel experiences. 

In today’s fiercely competitive insurance market, the customer experience has emerged as a pivotal differentiator. 

This was the central theme of a panel discussion featuring top industry leaders, including Mok Wan Kong, partner – RMP & EIP, head of insurance at KPMG in Malaysia, Prashant Lulla, head of customer experience for Asia Pacific at Zurich Insurance, and Stephanie Caunter, head of customer strategy & marketing of AIA, at the Insurance Asia Forum in Kuala Lumpur last month. 

These industry players shared insights on how customer satisfaction and engagement are driving growth in the insurance sector.  

Understanding customer needs

Lulla emphasised Zurich Insurance’s strategic focus on customer channels, which began in 2019, aiming for customer simplification and innovation. 

He highlighted a key principle, stating, “What gets measured gets improved.” Zurich incorporated 40% of their customer KPIs into every business unit’s scorecard, significantly driving attention and action towards customer satisfaction. 

“One of the biggest challenges with insurance is the jargon used and the way we communicate to our customers... simplifying our communication has made a significant impact,” Lulla said. 

Zurich’s efforts included simplifying policy documents and customer communications, making them more accessible and understandable. 

They also implemented a customer-centricity programme tailored to different customer segments, understanding their needs and preferences, and adapting their services accordingly. This approach has proven effective, particularly with millennials and Gen Z, who prefer digital interactions and personalised services.  

Investing in technology and processes

AIA’s journey towards creating a fully integrated omnichannel experience was recounted by Caunter.

She cited her experience since joining AIA Malaysia over three years ago, forming the Customer Strategy and Marketing Department. This team comprised experts from various industries, including e-commerce and banking, bringing diverse perspectives to the insurance sector. 

Caunter stressed the importance of demonstrating the impact of customer experience initiatives. She gave an example of an automated onboarding journey for new policyholders, which significantly increased engagement with AIA’s digital services. 

“Customers who got onto our app increased tenfold... people who are on our app are three times more likely to buy another policy,” she said.

This data-driven approach helped align internal stakeholders with the customer-centric vision, showcasing tangible business benefits.

Both panellists highlighted the transformative role of technology in enhancing customer experiences.

Caunter discussed AIA’s AI-powered nutrition analysis tool, which encourages healthier lifestyles amongst policyholders. She also mentioned the use of human-like voice bots to validate leads, improving the quality of customer interactions.

However, Caunter cautioned against over-reliance on technology without a clear strategy. She quoted CX practitioner Brad Cleveland in saying: “There’s no technology that can be the answer to a better customer experience in the absence of effective strategy and planning.”

AIA developed an internally created Customer First Engagement Framework, emphasising simplicity and organisational buy-in. This framework guided their customer engagement efforts, resulting in initiatives like the Life Plus Rewards programme, which incentivises customers to engage with AIA’s digital services.

Similarly, Lulla also highlighted the importance of choice and empathy in technology adoption. “At the end of the day, we can build the best of technologies, but the customer chooses how they want to interact with us,” he said.

Lulla also emphasised the need for empathy in digital interactions, particularly during critical moments like claims processing. 

Future directions

The panellists agreed that the future of insurance lies in a balanced approach that combines technology with human touchpoints. 

Mok from KPMG Malaysia reinforced this by noting the industry’s focus on modernising operations and addressing cyber risks. 

The KPMG insurance survey revealed that CEOs see cybercrime as a significant growth impediment, underscoring the need for robust technological investments. 

As insurers continue to innovate and adapt, maintaining a clear focus on customer needs and preferences will be crucial for sustained success. 

“So, do remember to measure the success factors that you set for yourself, whether those objectives are being achieved, and whether activities are aligned,” Mok concluded.