Actuarial Post, UK: Cognizant’s Global Insurance Leader Says Instant Mobile Messaging Apps Offer Insurers More Direct Channels to Communicate with Customers

“WhatsApp, WeChat, live chat, Facebook messenger: these are just some of the instant messaging (IM) channels which are no longer solely used for exchanging everyday messages, sending ubiquitous selfies or sharing one’s location,” writes Ben Bengtson. “Messaging apps build customer loyalty by providing an interpersonal transaction and demystifying the traditional back office-processing.” Excerpts:

“Effectively, mobile messaging can become the tool of new-age distribution, digital marketing, after-sales service and customer support.

For insurers, instant mobile messaging opens a new channel of communication, whilst reducing operational costs and turnaround time. Messaging also improves their marketing, sales and customer service. It can help overcome challenges such as the need to educate and engage with customers and prospects, as well as make distribution channels more efficient by enabling easy dissemination of content and effortless consumption by the target audience.

One example of content awareness is in the personal property segment. The homeowner experiences loss-causing damage, for example from a leak. The ability to integrate a message to the claimant with specific instructions on what to do next such as a video or a set of steps can save millions in further damages.

The low-cost nature of instant messaging not only optimizes costs for insurers, but also empowers customers. With WeChat’s API, as one example, businesses can build apps that run on its instant messaging platform, allowing them to customize functions according to their needs and perform specialized transactions, such as payment and image verification. Insurers can introduce features such as push notifications with the help of stickers, icons and one-touch payment such as the one introduced by Snapchat.

Mobile messaging can help insurers meet growing consumer demand for a better, more personalized service. With the advent of traditional digital communication channels, customers now have numerous means of contact and support. Furthermore, mobile messaging can be used by insurers as a very effective tool for personal and structured customer support. The inherent non-voice, concise and synchronous nature of communication can help insurers swiftly and effectively address and redress queries and complaints.

To ensure successful implementation and adoption of IM technologies, insurers should consider a variety of different steps, like assessing available messaging platforms, paying attention to the best choice for hosting apps on the messenger or extending current services to a new channel. Insurers should also set up robust security protocols to meet data security and other compliance needs.

Personalization is now digital, even in the insurance industry.”

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