Economic, social, and technological developments are causing a seismic shift in consumer expectations. For many insurers, 2025 could be a defining year – in which they either rise to the occasion or lose market share.
What exactly do insurance customers expect in 2025? Better value, ethical personalization, and omnichannel customer service stand out as priorities.
Expectation #1: Better Value
Have you ever purchased your favorite 15-ounce bag of chips only to find that it now only contains 13.5 ounces? This is a classic example of shrinkflation. With inflation, consumers pay more for the same products. With shrinkflation, consumers pay the same amount for less product. Either way, the power of the dollar decreases.
Both shrinkflation and inflation have been problems recently – and not just at the grocery store: insurance prices have also been rising. At the same time, some insurers have been reducing coverage limits, introducing more exclusions, or otherwise chipping away at coverage. For example, according to The Washington Post, major insurers have said they plan to cut out hurricane, wind, and hail damage from policies in high-risk coastal and wildfire areas.
Meanwhile, LexisNexis reports that U.S. auto insurance shopping activity has reached “nuclear” levels for the third consecutive quarter. Policyholders are looking for better value and won’t hesitate to switch insurers if they find it. This is bad news for insurers that aren’t meeting customer expectations, but it’s good news for insurers that are rising to the occasion.
What can insurers do? While it may be impossible to reduce insurance rates, insurance carriers and brokers can provide more value, and earn more new business by providing superior customer service with zero wait time.
Expectation #2: Ethical Personalization
Technology has paved the way for increased personalization, and many consumers are starting to expect this. In a survey by Salesforce, 73% of customers said they expect companies to deliver better personalization as technology advances.
Personalization is particularly important in the insurance sector. Policyholders benefit from personalized coverage recommendations that match their risks to avoid coverage gaps. Personalization is also important during the FNOL process, where it can kickstart a fast claims process.
However, there’s a fine line between useful and invasive. According to BCG, 75% of U.S. consumers are comfortable with companies using public data to support customized experiences. Personalization can be positive if it benefits the customer – for example, by helping customers find the best price or by creating faster, easier, or more enjoyable experiences. However, inaccurate or invasive personalization may cause consumers to disengage with the brand. In some cases, misuse of data could even lead to litigation. According to PCMag, Texas has filed a lawsuit against Allstate over the insurer’s alleged use of driving data collected from apps.
What can insurers do? AI makes it easy to provide insurance customers with meaningful personalization. Insurers should leverage AI agents that are capable of accessing customer data to deliver tailored experiences. However, it’s important to be transparent and ethical about the data behind the personalization.
Expectation #3: Wait-Free, Omnichannel Customer Service
In the past, customers who wanted help usually had to call during normal business hours and wait for a representative. Technology has changed this. Voice AI makes it possible for customers to receive instant assistance 24/7 with zero wait time. With technology continuing to improve, customers are coming to expect even more: high-quality support regardless of the channel they use.
However, customers are often disappointed. According to Salesforce, 79% of customers say they expect consistent interactions across departments, but 56% say they frequently need to repeat information when they interact with a new customer service representative.
While these findings apply to all industries, the research is especially relevant to complex interactions, such as with insurance. A policyholder might report a claim via phone and then follow up on the claim via message apps, email, or text messages. They expect a consistent experience across all of these channels.
What can insurers do? Insurers should provide productive omnichannel customer experiences with AI tools. However, not all AI tools are equal. To avoid the same old siloed systems that have frustrated insurance customers in the past, insurers need AI agents that are capable of switching from one channel to another. Insurers also need AI agents that engage customers with humanlike conversation and can actually solve most of the issues customers call about.
Are You Meeting Insurance Customer Expectations?
Delivering 24/7 support, humanlike service, zero wait times and resolving 80% of customer calls without transfer sounds like a dream for most agencies. Yet, it’s already happening right now. Even better – you can implement a solution that achieves all this and more in just weeks! With Liberate Voice AI solutions, you can rise to the occasion and deliver the service your insurance customers expect.
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