Digital onboarding, how does it affect the insurance sector?

05 Sep 2021

Digital onboarding encourages users to become customers. Increasing sales is a goal  that all businesses need to bear in mind. The insurance sector is not unaware of this rule, which is why it has to rely on techniques, technologies and methodologies that boost its services. We will now explain this concept and how it can be applied to this sector.

What does digital onboarding consist of?

It is a process focused on the acquisition of new customers from users. This happens by granting them access to the services offered by a company. Quickly and easily, they become part of a database which allows us to carry out different actions to get them buy something or with the intention of promoting loyalty in the long term.

The process can be completed in several ways, but the digital method aims at getting new customers online. However, you need to know that the main method is the blended one. The users start the application process online and complete it in person at an office. After downloading a series of documents and forms, they go to one of the branches and they identify themselves, submit the corresponding documents and sign them.

In addition, the way you deal with this process may be adapted to the situation of each insurance company. However, they are relying on the digitalisation of their processes. This allows them to solve different problems and any inconvenience caused to the user, thus postponing the signature of the contract or failing to do so.

How does it affect the insurance sector?

Firstly, we will accelerate the customer acquisition process. Embracing digitalisation allows us to simplify the entire system. The users are responsible for filling out all the different documents with their personal details and are given the option to sign them online. If necessary, it is possible to implement video call systems or chatbots so they can be helped at any time.

The waiting time is also reduced. The users do not need to go to a branch because they can complete the procedure from their houses. As a result, abandonment rates decrease and satisfaction and convenience increase throughout the process. However, the steps to be taken need to be polished and the instructions as clear as possible.

Another aspect you need to take into account is that the costs are reduced. Employees do not have to carry out the tasks related to the digitalised procedure. This allows us to divert them towards more important areas. The number of branches is reduced, and the platform or website cost is not especially high for customers.

In short, digital onboarding offers insurance companies a large number of possibilities, especially because they can accelerate their customer acquisition processes. Once again, digitalisation manages to bring buyers and organisations closer so they both come out on top. In this way, more appropriate products will be offered to customers depending on their profile. Quite an improvement.

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