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Insurance CRM: An In-Depth Guide in 2024

Begüm Yılmaz
Updated on Jan 3
3 min read

The world of insurance can be a tricky place with many policies, regulatory rules, and managing customer relationships. Besides, customers now want a top-notch, seamless service. To navigate this complex world, insurance companies need a tool to make things simpler and turn problems into opportunities.

Customer Relationship Management (CRM) software can be a useful tool in automating and managing customer data while increasing customer satisfaction. This article explains why insurance businesses should implement CRM software, what the benefits are, and the key features of insurance CRM tools.

Why should you use CRM software for the insurance industry?

Insurance CRM workflow

Source: Creatio

Figure 1. Example of a CRM workflow map in the insurance industry

CRM helps insurance companies in managing data, automating processes, improving customer service, staying on the right side of rules and regulations, and keeping up with the latest digital trends. With CRM, insurance companies can make the most of their data, use automation to work smarter, and deliver a standout service.

For those interested, here is our article on the top 10 insurance CRM software in the market.

1- Centralize & improve data management

CRMs allow brokers to have all their customer information in one place, improving accessibility and decision-making. Data includes:

  • customer contact details
  • policy information
  • claims history
  • interactions and more.

2- Streamline communications

Research shows that almost half of the insurance customers expect 24/7 customer support.1 CRM helps in synchronizing communication channels such as email, calls, social media, and more. It allows insurance brokers to keep track of all interactions with the client, hence providing a unified customer experience. This streamlines the communication process and avoids any miscommunication.

3- Enable digital transformation

Source: McKinsey

Figure 2. How has digitization affected the insurance business?

As the insurance industry becomes more digital, brokers need tools to keep up with the transformation. A CRM system can provide such a tool, allowing brokers to manage their digital processes more efficiently.

4- Increase productivity

By automating repetitive tasks such as data entry and follow-ups, CRM allows insurance brokers to focus more on their core tasks, such as selling policies and nurturing client relationships. This significantly increases productivity levels.

5- Improve ROI

CRM helps in tracking and managing leads effectively, ensuring that no opportunity is missed. With better lead management and customer service, CRM can significantly improve the return on investment for insurance brokers.

10 key features of insurance CRM software

1- Management processes

Lead generation and management

CRM software can automatically track potential customers and classify them based on their interest levels. It can also automate follow-up processes to increase the likelihood of conversion.

Contact management

CRM provides robust contact management tools that let companies organize and track all interactions with clients.

Policy management

CRM software assists insurance agents in managing policy renewals, cancellations, and alterations.

Compliance management

With CRM software, insurance companies can keep track of the law and regulation chances and reduce the risk of non-compliance.

2- Automation

Source: McKinsey

Figure 3. Effect of automation in the insurance industry.

Automated workflows

Automated workflows can streamline various processes, such as:

Indeed, research shows that automation can reduce the cost of the claim process by 30%.2

Marketing automation

CRM systems with marketing automation tools allow for targeted and personalized marketing campaigns, leading to better customer engagement and increased sales.

Sales automation

This feature can automate various parts of the insurance sales processes, such as follow-ups and reminders, thereby freeing up the broker’s time and ensuring nothing falls through the cracks.

3- Predictive lead scoring

This feature uses AI/ML-powered methods and data analytics to score leads based on their likelihood to convert. AI-powered CRM helps brokers prioritize their efforts on the most promising leads, increasing the efficiency of the sales process.

4- Low-code/no-code development

This feature allows users to create and customize applications without extensive programming knowledge, offering the flexibility to customize the CRM system to specific needs and workflows with low-code no-code.

5- Custom sales pipeline

A customizable sales pipeline helps manage and track the stages of the sales process, providing visibility into opportunities and areas for improvement, which in turn helps in driving revenue growth.

For those interested, here is our data-driven list of CRM software.

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Cem Dilmegani
Principal Analyst
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Begüm Yılmaz
Begüm is an Industry Analyst at AIMultiple. She holds a bachelor's degree from Bogazici University and specializes in sentiment analysis, survey research, content writing services and Customer Relationship Management (CRM) systems.

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