Life insurers urged to embrace software to boost operations

By Cynthia Ezekwe.

Life insurance companies have been urged  to  adopt Customer Communications Management (CCM) software to boost operations, given the pace of technological advancements, dynamic shift in the policy and regulatory environment and evolving insurance landscape.

Gartner Peer Insights, a research and advisory firm defines CCM software as a collection of computer programmes that composes, personalizes, formats and delivers content acquired from various sources into targeted and relevant electronic and physical communications between an enterprise and its customers, prospective customers and business partners.

Eileen Potter, vice president  of insurance marketing at Smart Communications, a telecommunications and digital services provider based in the Philippines, stated identified the relevance of CCM software to life insurance  companies in a recent  report titled, “How Can Customer Communications Management (CCM) Software Benefit Life Insurers?’’

Potter noted that the evolving landscape of the life insurance market has triggered the  growing need for consumer education in order to help people make informed decisions about their coverage options and insurance needs. She noted that insurance professionals can truly become trusted advisors in empowering consumers to make the right decisions for their unique situation when equipped with modern CCM solutions.

“Luckily, leading CCM software can help make lighter work of becoming an agile, customer-centric organisation. From shifting policyholder behaviours/expectations to keeping up with changing regulations or compliance requirements, life insurance leaders need to be poised for evolution especially in the realm of their technology stack,’’ the report stated.

The insurance expert explained that given today’s competitive market with many customer touchpoints to account for, creating a personalised member journey packed with clarity and ease may be difficult without leading customer communications management software at the helm of an insurer’s technology stack.

According to Potter, life insurance markets are  subject to changes in regulatory requirements which can directly impact underwriting processes, distribution channels, and offerings, as a result of the  shifting regulatory landscape that’s apt to remain in flux for the foreseeable future.

She emphasised that delivering personalised, timely, and relevant information will enable  insurance companies to build stronger relationships with their customers, leading to improved loyalty and retention, while poor customer communications can have severe consequences, impacting policy management and the claims lifecycle, even leading customers to switch to a competitor.

In light of the above, the VP,Smart Communications, outlined a few  ways customer communications management technology improves policy management as well as claims processing, stressing that clear communication at the time of policy issuance helps avoid disputes and ensures that customers know what to expect in the event of a claim.

“Effective communication ensures that customers are aware of the claims process, including how to file a claim, required documentation, and expected timelines for resolution. When customers submit all necessary information and documentation accurately from the beginning, it reduces the back-and-forth communication between the insurer and the policyholder,’’she stated.

Potter further pointed out that effective customer communication enhances  transparent claims procedures, reduces disputes and litigation,fosters trust between the insurer and the policyholder, leading to smoother claims processing and quicker resolutions.

“Utilising customer communication channels effectively allows your insurance organisation to tailor its messaging to individual policyholders. Personalised interactions demonstrate that the customer is valued and known as an individual, strengthening the customer-insurer relationship,’’ she noted.

Highlighting key advantages of cloud-based customer communications for life insurance providers, Potter explained that  cloud-based CCM solutions allow insurers to respond to changing regulatory requirements with more speed and flexibility.

Dwelling further on this, she noted that the software enhances effective, personalised communication which leads to customer satisfaction, reduces errors, and streamlines the overall process when a consumer has a coverage question, makes policy changes or files a claim.

“Cloud-based solutions enable personalised communications across multiple channels, providing your customers with tailored experiences and building stronger connections. This is an absolute must-have feature for today’s savvy customers,” she added.

Utilising the right CCM software, according to Potter,  helps life insurance companies  automate the delivery and management of policy documents, reducing manual effort while improving accuracy and ensuring compliance. She added  that CCM software streamlines policy management and claims processing by automating workflows, reducing paperwork, and improving efficiency, leading to faster turnaround times.

“With the right solutions and approach, your life insurance organisation can stay ahead of the competition and meet evolving demands from regulators and customers alike. By embracing technology and prioritising effective customer communication, you can drive success in the ever-evolving markets,’’ Potter concluded.