I'm not the most organized person. I usually have a million things going on in the morning, and I'm usually trying to figure them out as I'm rushing to catch a flight. Thankfully, I have help. She's someone who can tell me if I need to wear a coat, how long it will take me to get to the airport, and even when my dinner reservation is on Saturday.

No, I don't have a butler or personal assistant. I have Siri.

While the capabilities of voice assistants like Siri and Alexa still have issues, there's no denying that the human-robot exchange is quickly becoming commonplace, and adoption is only increasing. According to Juniper Research, 55% of U.S. households will have Google Home, Sonos One, or Amazon Echo installed in their home by 2022.

This demand for voice-controlled artificial intelligence (AI) is part of a bigger trend toward more personalized, customized, conversational experiences where digital interactions help consumers make everyday decisions while feeling more like talking to a trusted friend. Companies that make voice-controlled AI agents a central part of the digital customer experience stand to reap significant rewards.

Insurance is no exception

According to recent research from NTT DATA Services, customers on-the-go seek opportunities to work with and through the mobilized versions of AI agents to accomplish tasks. For everything from quotes, bill pay, and claims customers want to accomplish many tasks on their own without having to speak to a human.

Unfortunately, insurers may not be ready. Only 16% of consumers are totally satisfied with the digital insurance experiences they're currently getting. Top complaints listed by the respondents included:

- - - - Inability to complete tasks
      - Too many or irrelevant options
      - Processes that take too long
      - Multiple requests for the same information

While consumers across demographics cited these as common problems with their financial services and insurance providers (FSIs), the study found the younger generation of customers had even higher expectations.

Generational concerns

The survey divided consumers into two groups:

— "Settlers" are an older generation of loyal users who want fast and simple experiences.

— "Explorers" are younger, less loyal individuals who value customized support that is easily available via mobile.

While Settlers make up most of today's users, Explorers are the consumers of the future. It is this group that demands stronger services from FSIs, dictating the direction institutions must take if they are to be successful in the coming years.

These early adopters are often indicators of the next big trend and seek more than just high-level recommendations about their finances. Rather, they desire personalized and customized advice on income, expenses and savings. This may take the form of advising consumers on insurance options, proactively sending payment reminders, and even recommending exactly how to spend or save large bonuses.

In fact, 61% would even be interested in having their bank forcefully intervene or prevent a transaction when they risk going over budget in a certain category.

Valuable consumer data

In exchange for these services, consumers will share personal information. More than 60% of Settlers and 81% of Explorers agree to share their online retail purchases — if it means their bank will help them manage their money or their insurer will help them reassess their risk. Some consumers may go even further, allowing access to:

- - - - In-store retail purchases
      - Geolocation information
      - Uber/Lyft Information
      - Social media information

Despite this potential for increased customer satisfaction and loyalty, institutions are not yet there yet. There is no doubt FSIs can handle the simple tasks; users have no problem getting quotes or paying bills. But for the more complex tasks, FSIs are undeniably lacking when it comes to the digital experience.

FSIs are undeniably lacking when it comes to the digital experience.

FSIs are undeniably lacking when it comes to the digital experience. (Photo: iStock)

What's the risk if carriers fail to meet expectations?

For the Explorers, it's huge: Eighty-six percent saying they would leave their FSI if they could get a better digital experience elsewhere.

This leaves carriers with a challenge. How do they simplify an experience that is by necessity becoming even more complex?

Though Explorers want personalized guidance, that doesn't necessarily mean human guidance. Rather, 41% of respondents indicated their preference for interactions with AI agents, and that number will continue to grow as AI becomes more advanced.

Where the robots come in

Imagine Siri or Alexa not only having the ability to look up your favorite song, but also walk you through your insurance renewal process and explain what all the complicated terms mean to you. Sound impossible? Existing AI agents can already do this if they have access to the right data at the right time, and that's the rub.

For carriers to be able to deliver on the kind of personalized, customized, conversational experiences, these Explorers expect they'll need accurate, timely, and actionable real-time data. Yet 68 percent of carriers surveyed said data was the most critical challenge to delivering better digital experiences

What's behind that challenge? Over 50% cited an inability to manage data and turn it into actionable insights. For an industry so reliant on data for things like risk assessment and product pricing how can data be the challenge? It all starts with how the carrier thinks about data. Is it a precious object to be squirreled away in a siloed database, or is it an asset to be shared and used across the organization?

We all know what the correct answer is, but we don't always know where to start. As with many things, success starts with a strategy — one that focuses on the four key areas currently challenging carriers: data quality, data mining, data analytics, and data access. Focusing on these categories allows carriers to better understand their customers and build the kinds of relationships both Settlers and Explorers seek.

This customer knowledge will lead to smarter agents, better quotes, and interactions via Alexa or Siri that feel personal and help customers plan well. As a result, these data-driven experiences will yield higher retention, increased loyalty, greater advocacy and ultimately a greater lifetime customer value.

Lisa Woodley is vice president of FSI Customer Experience for NTT DATA Services. She can be reached on Twitter: @LisaWoodley.

The opinions expressed here are the author's own.

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