The Role of UX in Insurance—Revolutionizing the Industry

12minutes read
ux design in insurance

With an increasing number of consumers turning to online platforms for their insurance needs, the importance of intuitive and engaging design has never been greater. A seamless and user-friendly interface can make all the difference in attracting and retaining customers in this competitive landscape.

Today, we delve into the pivotal role of UX design in insurance, exploring its impact on customer satisfaction, trust-building, and overall business growth. Gapsy Studio's expertise in UX design can help insurance companies streamline their workflow. Join us on this insightful journey to uncover the power of effective design solutions in shaping the future of insurance.

What Is User Experience in the Insurance Industry?

Insurance user experience design is ​​the overall experience customers have when interacting with insurance products, services, and platforms. It encompasses every touchpoint a customer has with an insurance company, from purchasing a policy to making a claim or seeking customer support. A positive UI/UX design significantly influences customer satisfaction, loyalty, and retention.

Here are some key aspects of UX in the insurance industry:

insurance ux design key aspects
core purposes of insurance ux
  • Digital platforms. With the increasing digitization of services, insurance companies focus on providing user-friendly websites, mobile apps, and online portals. These platforms should be easy to navigate, intuitive, and offer clear information about policies, coverage, and claims.
  • Policy purchase process. The process of buying an insurance policy should be straightforward and transparent. Customers should be able to easily compare different policies, understand terms and conditions, and complete the purchase with minimal friction.
  • Claims procedure. These are the ones of the most critical moments of truth in the insurance customer journey. It must be hassle-free, quick, and transparent. Clear communication, easy submission of documents, and prompt settlement of claims are essential for a positive experience.
  • Customer support. Effective and responsive customer support is crucial for a good UX. This way, customers can contact the insurance company through various channels like phone, email, or live chat and receive timely and helpful assistance.
  • Transparency and trust. Building trust is vital in the insurance industry. Transparent information about coverage, pricing, terms, and conditions can help establish credibility and foster customer trust.
  • Education and guidance. To many customers, insurance appears overwhelming. Providing educational resources, clear explanations of insurance concepts, and guidance throughout the customer journey can improve UX and help customers make informed decisions.

Developing digital solutions for the insurance industry is a complex process. Let’s figure out how to deliver high-quality insurance UX.

Challenges That Digital Insurance Industry Faces

Insurance companies must adapt to meet changing customer expectations and market demands regarding UX design. Below are some critical challenges the digital insurance industry faces in this dynamic environment.

ux in insurance challenges
challenges of insurance ux

Insurance’s complexity can decrease user trust

A report from the IBM Institute of Business Value states that 42 percent of customers don’t fully trust their insurer. One of the primary reasons for decreased trust in insurance is the lack of transparency. Insurers frequently use jargon-filled language and intricate fine print that can be difficult for customers to decipher. This lack of clarity is deepened by poorly designed user interfaces that fail to present information in an accessible and understandable manner. 

Based on this, UX design should prioritize simplicity and transparency by employing clear and straightforward language, interactive tooltips, and visual aids that demystify insurance products, terms, and conditions. By doing so, insurers can empower customers to make informed decisions and foster a more trusting relationship.

Users aren’t satisfied with a poor insurance UX

The overwhelming array of coverage options, convoluted application procedures, and intricate terms and conditions can lead to frustration and decision paralysis among users. This complexity hinders the user's ability to make informed choices and increases the likelihood of dissatisfaction and potential mismatches between their needs and the selected insurance coverage. Satisfied users are more likely to have positive experiences with the insurance company, leading to higher customer loyalty. 

A streamlined and user-friendly UX that meets user expectations reduces churn rates and increases customer lifetime value. Happy customers can become brand advocates, promoting the insurance company through word-of-mouth referrals and positive online reviews, attracting new customers, and enhancing the company's reputation.

Besides, 60% of insurance executives agree their organization needs a customer experience (CX) strategy. To address this challenge, UX design must simplify the user journey by reducing the number of steps, providing guided assistance, and offering personalized recommendations to help users navigate the selection and application processes more effectively.

Read in our blog: How to Make a Customer Journey Map?

Inefficient and unmanageable insurance processes

In the insurance industry, various processes, such as policy application, claims filing, underwriting, and customer service interactions, often involve multiple steps, complex requirements, and manual interventions. These processes may be paper-based or not fully integrated with digital platforms, leading to inefficiencies, delays, and inconsistencies in service delivery. Inadequate communication, unclear instructions, and disjointed interfaces can exacerbate the user's anxiety and uncertainty, eroding trust and satisfaction with the insurance provider.

How does one deal with this problem? Implement accessible support channels, provide real-time updates and notifications, and offer proactive assistance and guidance throughout the user's journey to enhance transparency, build trust, and reduce anxiety associated with complex and unfamiliar processes.

How to Create High-Quality UX Design in Insurance? Overcoming Challenges

Navigating the intricacies of UX in insurance requires a tailored approach that addresses the industry's unique challenges while prioritizing user-centricity, transparency, and efficiency. Here, we will delve into actionable insights and innovative solutions to improve insurance UX design, focusing on overcoming obstacles related to product complexity.

ux design in insurance tips
best practices for insurance ux design

Speed up the purchasing process

Many life insurance providers continue to employ lengthy purchasing procedures that involve medical tests and interviews. This outdated approach is contributing to the declining ownership of life insurance policies. Today's consumers are accustomed to the convenience of one-click shopping and expect a similarly streamlined and efficient process when purchasing life insurance. While some advancements have been made in this area, the insurance industry still needs to fully embrace the need for an accelerated and straightforward application process to enhance user experience.

Speeding the purchasing process through expedited digital underwriting is crucial for improving insurance UX design. By leveraging advanced technology and data analytics, insurers can streamline the underwriting process, reduce the need for manual interventions, and provide real-time decision-making capabilities. It enhances the user experience by offering a faster and more convenient application process, enabling insurers to deliver more personalized and competitive products. 

Additionally, by automating and simplifying underwriting, insurers can reduce costs, minimize errors, and enhance operational efficiency, ultimately increasing customer satisfaction, trust, and loyalty.

You may also like: A Comprehensive Guide on How to Hire a UX Designer.

Create an app that reflects your site

Today, mobile traffic suppresses desktop traffic by 22%. The proportion of traffic shifting to mobile devices is steadily increasing. Insurance companies that invest in developing mobile app design today will be well-prepared for future market trends. Insurance apps provide users with convenient access to their policies, claims, and other essential services anytime, anywhere. This accessibility enhances user experience by allowing customers to manage their insurance needs on the go, reducing the reliance on traditional channels and paperwork.

A consistent and cohesive brand presence across all digital touchpoints reinforces user trust and credibility. When users encounter consistent branding, messaging, and user experience across your website and app, they perceive your insurance company as reliable, professional, and customer-centric, fostering a positive brand perception and building long-term customer relationships. Creating an app that mirrors your insurance website design simplifies the development and maintenance process. By leveraging existing design assets, codebase, and backend systems, you can accelerate app development, reduce costs, and ensure consistency in content, features, and updates across both platforms.

Educate your users

Educational content empowers users to take control of their insurance decisions by providing them with the knowledge and tools they need to make informed choices. By offering clear and accessible information on policy features, coverage limits, deductibles, premiums, and more, insurance platforms enable users to compare options, understand trade-offs, and select the most appropriate coverage for their needs and circumstances. 

Educational materials that add value to users by providing actionable insights, tips, and advice on risk management, loss prevention, and financial planning encourage user engagement and foster long-term loyalty. By becoming a trusted source of information and guidance, insurance platforms can establish stronger relationships with users, increase customer retention, and drive business growth.

Here’s how the Ladder insurance platform solves this issue. The website provides a blog with frequently asked questions and explains all the peculiarities simply.

ladder insurance ux example
ladder insurance platform

Track your competitors

Monitoring competitors' UX in insurance strategies, features, and functionalities helps you stay abreast of industry trends, emerging technologies, and innovative practices. Analyzing competitors' platforms helps identify new opportunities for improvement, innovation, and differentiation, ensuring your UX design remains competitive, relevant, and aligned with evolving user expectations and preferences.

Comparing your UX design with competitors' platforms enables you to benchmark the industry’s performance, identify strengths and weaknesses, and learn from best practices and success stories. Understand where you stand relative to competitors to set realistic goals, prioritize areas for improvement, and implement effective strategies to enhance user experience and differentiate their offerings in the market.

Gapsy is a Webflow design company that will help you create an insurance UX design.

Ways UX Design Helps Insurers Improve the Digital Customer Experience

Enhancing the digital customer experience has become a priority for insurers seeking to differentiate themselves in a competitive market. Let’s explore how UX design helps insurers improve the digital customer experience, drive engagement, foster loyalty, and drive business growth.

improving customer experience with insurance ux
how to improve customer experience with insurance ux?

Integrate digital and human interaction

Insurers can provide users with a balanced and comprehensive service that meets their diverse preferences by combining the convenience and efficiency of digital platforms with the personal touch and expertise of human interactions.

While digital platforms can handle routine inquiries and transactions efficiently, there are instances where human intervention is necessary to resolve complex issues, address unique needs, or provide specialized advice and support. Creating a seamless multichannel experience that integrates digital and human touchpoints enables users to interact with the insurance company through their preferred channels at their convenience. 

Whether users prefer self-service digital platforms, seek expert advice from human advisors, or require assistance from customer service representatives, insurers should ensure that all channels are interconnected, consistent, and complementary, providing users with flexibility, choice, and continuity in their interactions.

Personalize the user experience

Personalizing the insurance user experience allows you to deliver customized content, products, and recommendations based on user demographics, preferences, past interactions, and behavior. Analyze user data and understand their interests to offer personalized policy options, coverage suggestions, and relevant content that resonate with users, enhance relevance, and drive conversion rates.

Personalization enables insurers to optimize the user journey, reduce friction, and streamline the path to conversion by guiding users through personalized and relevant content, offers, and recommendations that align with their interests, needs, and intentions. Simplifying decision-making, providing relevant information, and offering tailored solutions can increase policy sales and maximize revenue opportunities.

Read in our blog: Why Outsource UX Research: A Complete Guide.

Design with empathy

Designing with empathy fosters trust and credibility by demonstrating a genuine understanding of users' concerns and priorities. By incorporating user feedback, addressing pain points, and prioritizing user-centric design principles, insurers can build stronger relationships with users, differentiate themselves from competitors, and position themselves as trusted and customer-centric partners in their journey toward financial protection and well-being.

The empathetic design focuses on creating emotionally resonant and engaging experiences that connect with users on a deeper level, helping them navigate the insurance world more easily. Intuitive, meaningful, relevant interactions, content, and visual elements that resonate with users' emotions and values enhance user engagement, satisfaction, and loyalty, ultimately driving business growth, retention, and advocacy.

Understanding the Insurance Digital Experience Holistically

UX design in insurance is more than a good picture. User experience is a long process of getting into customers’ shoes. Let’s analyze different touchpoints and how designers can contribute to them.

holistic insurance ux
holistic insurance ux
  • Landing pages. These pages provide users with a first impression of the business's products and services. Given the nature of insurance, where users hope to avoid incidents, insurers must set clear expectations for a smooth and effortless claims process. Through user interviews across various markets, UX teams can pinpoint essential elements users need before the sales journey.
  • Sales journey. Provide clear information on data collection purposes, provide support for challenging requests, minimize questions, prefill information, use progressive profiling, and simplify language to prevent user errors and misunderstandings. Apply behavioral and psychological principles to reduce cognitive load, disclose information progressively, and allow flexible decision-making by helping users understand price calculations and the impacts of their choices.
  • Self-service portal. After purchasing insurance, users should access and manage policies and claims digitally. Designers must ensure accurate information is displayed across sections and inform users about updates, price impacts, and policy changes.
  • Digital claim reporting. Minimize steps and request only essential information, pre-populating data from the sales journey for user review. Allow users to effortlessly submit images or videos as proof of damage digitally.
  • Claim reporting and handling. The UX team aims to streamline the claim-handling process by identifying information collection frictions to improve communication between agents, handlers, and customers and facilitating the registration process to minimize agent queries and lengthy conversations.

Digital Insurance Customer Experience Trends

Now, we’ll explore key trends shaping the digital insurance customer experience and their implications for insurers striving to deliver exceptional service and value to their customers.

insurance ux design trends
current trends in insurance ux

Omnichannel insurance user experience

The primary challenge faced by today's insurance customers is a fragmented multichannel experience, where communication and service channels operate in isolation. For instance, if a customer initiates a claim via phone and wishes to complete it through the web Client Portal, redundant information submission is often required due to disconnected channels. This disconnect highlights the growing demand for integrated, holistic experiences that offer seamless flow and consistent information across various channels, catering to individual customer needs and preferences.

As hybrid interactions become increasingly prevalent, insurers must develop a unified channel system that encompasses customer-facing and employee-facing channels to deliver comprehensive customer experiences. This integration is crucial for initial tasks like obtaining advice or quotes and for ongoing engagement and management of existing insurance policies.

Simplicity & speed

To meet customers' increasing need for speed, insurers must integrate digital channels with backend systems, automate manual processes, and enhance third-party workflows to expedite digital processing. As digital adoption and consumer expectations, influenced by various industry digital services, continue to rise, the emphasis on simplicity and speed becomes even more critical.

A prime example is insurtech company Lemonade, which introduced 'Policy 2.0'—a significantly simplified, modernized, and digitized insurance policy. This approach helps customers better understand their policy terms and conditions. Additionally, Lemonade promises a seamless claim submission process and boasts world-record instant payments processed in just three seconds.

Digitalization in insurance UX

A McKinsey & Company analysis of 2,000 global insurtechs highlights "rapid growth, evolving product focus, and a growing crop of innovative opportunities." The most significant insurtech advancements have been observed in marketing and distribution. Innovation is also on the rise in operational areas like policy servicing (in life insurance), claims processing (in auto insurance), and back-office functions (in health insurance).

Customers expect insurers to understand their needs and concerns, view their insurer as a reliable partner, and trust that assistance will be readily available in the event of an accident. Essentially, customers seek empathy and a human touch from their insurance providers. Only by empathetically addressing the specific needs of various customer touchpoints can insurers design an intuitive and compassionate customer experience. Achieving this level of empathy requires conducting insurance UX research and leveraging its findings to develop a customer-centric experience.

To Conclude...

In the evolving landscape of the insurance industry, user experience design plays a pivotal role in bridging the gap between complex insurance products and end-users. A well-crafted insurance UX enhances customer satisfaction, builds trust, fosters loyalty, and drives business growth. We've delved into the significance of intuitive interfaces, personalized experiences, and seamless interactions in the insurance sector. These elements are not mere additions but essential components that define the success of an insurance platform in today's digital age.

As insurance companies strive to stay competitive and relevant, partnering with a proficient design studio becomes indispensable. Gapsy Studio stands at the forefront of innovative UX design, offering tailored solutions that cater to the unique needs and challenges of the insurance industry. Leveraging cutting-edge technologies and a deep understanding of user behavior, we’ll transform complex insurance processes into intuitive and engaging user experiences. Check our portfolio and contact us to work together!

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