Years of investment in mobile apps, online portals and AI agents has done little to improve insurance interactions that still “feel disjointed”, Smart Communications says.

Aaron Everingham, director of the communications tech company, says cumbersome insurance processes feel out of step with banking and other services.

The insurance industry “seems to be holding onto outdated processes and simply digitising the same steps instead of rethinking and actually improving the overall process with the best outcome in mind”, he says.

“Customers often feel less understood and more disconnected from their insurers than ever before – exactly the opposite of what insurers intended.

“There are times when it feels like digital channels have only seemed to multiply points of friction.”

Mr Everingham says every unnecessary manual data request represents potential revenue loss. He recommends using digital forms that pre-fill known information and communications that remember the customer. He says more than 70% of policyholders aged under 45 are likely to leave if the process is too complex or repetitive.

“The solution isn’t more technology or more points of interaction. It’s about how those points of contact are connected ... empowering customers with greater control over when, where and how they can communicate.”

Most insurers are “multichannel”, with email, app, text or web options. But each experience stands alone and often policyholders must restart conversations when they switch channels.

The aim should be an “omnichannel” system that connects these touchpoints, allowing policyholders to submit a claim online, then interact on a mobile app and later receive a confirmation email without repeating details.

“That’s the kind of experience customers expect,” Mr Everingham said. “It’s not just about being everywhere; it’s about being seamless everywhere ... Customers need to feel that no matter how or where they engage, their insurer knows them and remembers them.”