Insurance CRM: An In-Depth Guide in 2024
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?
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:
- lead generation and follow-up
- customer service
- policy renewals
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 has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.
Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.
Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.
He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.
Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.
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