Insurers face pressure to modernise with self-service tools.

Insurers face pressure to modernise with self-service tools.

Insurance companies are increasingly shifting toward digitalisation, enhancing customer experiences by adopting online services and self-service options. Noel Tordesillas, Head of E-Channel, Business Channels at Etiqa, said that this digital move allows customers to manage their insurance policies more conveniently, improving overall service quality.

“What we're seeing now is actually a move towards digitalisation and online services, including an increase in using online channels for customers to research, purchase and manage their insurance policies,” said Tordesillas.

By 2025, Tordesillas noted that 90% of all insurance transactions could be fully digital, improving both the claims process and overall customer experience. "The claims experience will improve as customers are able to file and submit their documents online, as well as receive their real-time status updates," he said. Additionally, AI tools and chatbots are increasingly being utilised to provide immediate responses to customer inquiries.

However, Tordesillas highlighted that many insurers struggle to deliver a modern customer experience, especially when compared to global online services like Netflix or Amazon. 

"Insurance companies can’t provide that level of service because they're tied to outdated and manual systems that they've usually been using for probably decades," Tordesillas said. He added that strict regulatory requirements also slow down modernisation efforts, as insurers must navigate complex rules before implementing changes.

Another key issue is the lack of customer feedback mechanisms, which prevents insurers from fully understanding customer satisfaction levels and areas for improvement. Tordesillas pointed out, “When they don't have access to the voice of the customer, they don’t have any open line of online communication where customers can easily reach out for assistance.”

To enhance customer satisfaction, insurers should focus on key metrics across three areas: customer feedback, quantitative data, and digital experience metrics. By prioritising these metrics and accelerating digital transformation, Tordesillas believes insurers can meet rising customer expectations and deliver more personalised products.