Using digital disruption to create next level customer experiences

Whether it's ordering accessories on Amazon, experiencing live NBA games, scrolling reels on Insta, or picking up a new language on Duolingo, a large part of our time today is spent on engaging in digital experiences. According to a recent Deloitte report, Gen Zs and millennials spend nine hours each day on their digital devices. At the same time, Gen X and boomers invest about six to seven hours on average. And with the rising adoption of other tech gadgets such as smartwatches, smart rings, and virtual assistants, this number can be expected to grow even further. This shows that today's customers love being online.

They're accustomed to instant and seamless digital experiences and expect businesses to provide them, and they want personalized service, even from the sectors that deal with complex services, such as insurance. Historically seen as reliant on manual processes, insurance companies have to now integrate disruptive technologies into their core systems and processes to stay competitive. This major yet crucial step has the potential to dramatically elevate customer experience (CX).

Shifting consumer expectations in insurance

Did you know that 70% of customers risk leaving due to poor CX, according to The State of Digital Customer Experience Report 2024? That's why it wouldn't be wrong to infer that in 2025, an insurance business that doesn't offer seamless digital experiences may no longer be the preferred choice. This includes "trends shaping the future of CX," such as self-service portals and effortless omnichannel interactions.

From accelerating the claims process to providing instant quotes without paperwork to streamlining underwriting, it's time to exceed customer expectations at every stage and across processes.

Leveraging AI and automation in the customer journey

This is where AI can help. It is central to digital transformation. And the insurance industry is already recognizing this potential. As per an Ernst & Young Study, a staggering 99% of insurers are either already investing (42%) or planning to invest (57%) in GenAI. But the majority have questions about how to integrate AI safely in a traditionally risk-averse industry. Here is a breakdown of where all AI can be utilized and what the impact could be:

As you have seen, AI doesn't just enhance a single interaction, but it redefines CX. For insurers, the real opportunity lies in moving beyond single use cases to adopting AI across the customer journey.

Addressing operational challenges

With secure self-service portals that allow customers to access information, make payments, and submit claims and integrated omnichannel experiences, you're certainly getting one step closer to building stronger customer relationships. However, creating digital experiences requires tackling legacy systems and data silos, as many insurers still rely on paper-based workflows and fragmented platforms.
To successfully integrate AI into operations and modernize infrastructure ethically without impacting the operational continuity, insurers can:

Emphasize Four Operational Levers

Final thoughts

Want to retain your clients and acquire new ones? Embrace digital transformation.

Only digital solutions like AI automation can get you closer to providing an effortless, seamless digital customer experience across every touchpoint. The insurers poised to succeed in 2025 and beyond should focus on:

• Designing hyper-personalized, digital-first journeys
• Empowering customers with self-service tools and omnichannel support
• Upgrading legacy architecture with AI agents
• Continuously innovating to deliver better value

By focusing on these facets, you can make a transition from being a policy vendor to a digitally empowered, trusted risk adviser. If, of course, you want to stay ahead in the game.