Since its beginning in the ancient days of China and Babylon,the insurance industry's business model, along with its customerservice practices, did not change drastically throughout itshistory.

Because of its complex nature, the industry stuck to knownmethods and used a mixture of older approaches in running businessrather than progress with fresh, new approaches.

Then the internet arrived, and the way people and businessesinteracted with each other changed forever — except forinsurance. 

Held back by the steady expectations of traditional insurancecustomers, the industry didn't enter the digital age very quickly.But as time progresses, and the more traditional generations age, adifferent, tech-savvy target group of customers is putting thepressure on insurance brands to meet their customer service needsin the way they want. This means that insurance companies arefinally on a gradual climb toward entering today's world ofomnichannel customer engagement.  

After observing and studying the unique characteristics of millennials, insurancecompanies can take measures to enter their world. And as with anyventure into a foreign land, insurance must learn this generation'sway of communicating. There are a few brands that have figured outthe best ways to engage with today's customer. What can otherinsurance brands learn from them? 

Here are 11 tips for insurance companies looking to meet theneeds of the modern customer: 

11. Online account management

Young people today often prefer the anonymity of researchingonline for insurance that matches their way of life. To align withtheir preferences and expectations, insurance companies areimplementing online account management as a primary source ofcontact with their customers. In fact, there are now severalonline-only insurance companies rising in the ranks because oftheir forward-thinking customer engagement mindset, providingeasy-to-understand guidance and quick and easy procedures.

10. Self-service

Customers want to know that a brand values their time.Therefore, self-service should be offered to those visitors whodon't want to wait on hold or who want to simply go into theiraccount and complete a task on their own. This mode of customerexperience is especially effective on mobile devices, where acustomer can have access to their account anytime or anywhere.

Related: It's time to offer omnichannelservice

Touchtone and speech Interactive Voice Response (IVR) mighthave been "good enough" in the past, not anymore. (Photo:iStock)

9. Conversational Interactive VoiceResponse

New, conversational IVR systems improve the caller experienceand reduce the time people spend on the phone by allowing people tosimply say what they want in their own words to get them to theinformation they need, and by directing them to the rightinformation from the start. Conversational IVR engages callersusing intelligent conversation, such as: "Welcome back, Jim. Areyou calling about the order you placed yesterday?"

Related: Going digital? Here's how to keep a personalconnection with clients

8. Live chat

When it comes to the complex nature of insurance, there may comea time when the insurance customer encounters a question whileself-serving. Fortunately, live chat marries well with self-servicewhen a seamless transition is in place. Business rules can be setup to trigger a proactive invitation to chat when there are signsthat the customer needs help. Not only will the customer receiveinstant contact with an agent who can assist them, but live chat isstill in that mode of communication that modern customers prefer(online).

7. Virtual assistance

The trend toward automated conversations reveals how customerexpectations have evolved into the desire to remain tech savvy andindependent yet with the personalization of a two-way conversation.Virtual assistants take the insurance customer through a self-serveexperience by answering natural language questions for simplematters. Then, if the customer's issue needs further assistance,the conversation can be seamlessly transitioned into a live chatengagement with a real person.

Today's insurance consumers are social (media) animals.(Photo: iStock)

6. Social customer service

Insurance brands can make themselves available to customersanywhere, anytime by being present on social media platforms.Modern customers like to consult their social peers when a questionarises, and if the brand is tagged in their posts, it can seize theopportunity to engage and invite the customer to a more privatesetting of live chat.

5. Mobile chat

Making live chat available to all customers on any device is asign that an insurance brand understands customer expectations ofimmediacy and convenience. Therefore, implementing live chat onmobile devices would give a customer access to live help wheneverand wherever they need it (for example, in the doctor's office orstranded on the side of the road).

Related: Digital transformation can help insurers keepcustomers loyal

4. SMS chat

SMS chat takes mobile chat a step further in helping thecustomer to keep track of an ongoing conversation with theirinsurance company. SMS puts correspondence of pressing issues atthe tip of the customer's fingers, allowing them to deal withinsurance matters while tending to other tasks throughout theday.

Updated customer communications are essential to modernizingan insurance brand. (Photo: iStock)

3. Embrace an omnichannel world

Yes, these various channels of engagement create a field ofmultiple touchpoints of which the company has to keep track. That'swhy it's important to bring them all together into one omni-channelplatform. This consolidated view enables the brand to manage andanalyze customer data for continued improvement andpersonalization. It also empowers customer representatives withknowledge of each customer's journey, enabling them to effectivelyserve and satisfy the customer's expectations.

2. Live, personal help — anytime,anywhere

Make no mistake — an insurance brand that is movingtoward a digital environment as their dominant presence is not acompany that has forgotten the personal nature of their industry.They're not saying goodbye to the human aspect of caring forcustomers with insurance needs. It's quite the opposite. For manyconsumers, navigating the insurance world can be like watching aforeign film without subtitles. Live chat, social customer service,and mobile messaging can provide help to the customer in their hourof need – giving personal, real-time communication without thecustomer waiting on hold.  

1. Embrace technology

So, insurance brands should embrace the technologicalinnovations that have advanced customer engagement into the future.If the brand is already there, waiting for its customers when theyseek help (or even proactively providing engagement opportunitiesbefore they need help) it has removed a barrier to a possiblereluctance to deal with insurance matters. Customers liketo feel that their insurance company is not out of touch withmodern times. The reality is that customers expect instantgratification but insurance is complex. The right blend ofself-service and assisted online experience answers both of thoseconcerns.

Related: Match your marketing goals with the correcttechnology

George Skaff is vice president of worldwide marketing forthe Enterprise Division of Nuance Communications, a leadingprovider of voice and language solutions for businesses andconsumers.