Rethinking "Digital First" in Insurance: A Balanced Approach

When we hear "digital first," it’s easy to assume it means going all-in on apps, text, emails, and online portals while ditching traditional methods like printed documents. But for the insurance industry, where trust and clear communication are essential, it’s not that simple. Instead, "digital first" should mean creating a seamless mix of digital and print experiences that meet policyholders’ needs.

Print Still Matters in Insurance

In insurance, some things just work better on paper. Printed materials like policy documents, regulatory notices, and claims records often serve as tangible references for policyholders and can serve as a starting point to engage digitally. For instance:

• Printed Renewal Notice: A physical renewal notice arriving in the mail acts as a prominent and undeniable reminder. Unlike an email that might get lost in a crowded inbox or a notification that could be swiped away, a printed notice demands attention. It prompts the policyholder to engage, perhaps by logging into their insurer’s app to review or adjust coverage, or by contacting their agent directly. This tactile reminder can significantly improve engagement and retention rates.
  
  
• Mailed Claims Statement: While digital tools provide real-time updates and facilitate the claims process, a mailed claims statement can offer a sense of closure and peace of mind. Receiving a comprehensive, printed summary of the claim's resolution, even after digital tools have kept the process moving in real time, provides a tangible record. This can be particularly reassuring during stressful times, offering a physical document to review and file, independent of internet access or device availability.
  
  
• Regulatory Requirements: Beyond convenience and psychological comfort, a critical driver for continued print usage in insurance is regulatory compliance. In many jurisdictions, specific regulatory requirements mandate the delivery of certain documents in a printed format. These regulations are often designed to ensure universal access to critical information, protect consumers, and establish legally sound records. Failure to adhere to these print mandates can result in significant legal, regulatory, and financial repercussions for insurers. 

These required documents often include:

• Policy Contracts: The official legal agreement between the insurer and the policyholder.
• Disclosure Statements: Critical information about policy terms, conditions, and exclusions. Commercial policyholders may need detailed printed documents for audits.
• Privacy Notices: Explanations of how personal data is collected, used, and protected.
• Cancellation or Non-Renewal Notices: Formal notifications of changes to policy status, often requiring proof of delivery.

Rather than viewing print and digital as competing forces, the most effective strategy in insurance is to leverage digital tools to enhance the usefulness of print. This synergistic approach maximizes the strengths of both mediums. For example, adding QR codes on printed documents can seamlessly direct policyholders to personalized online resources, such as:

• Detailed Policy Information: A QR code on a summary document could link to the full, searchable policy wording online.
• Account Portals: Directing users to their personalized online account to manage their policy, make payments, or initiate claims.
• Educational Content: Linking to videos or articles that explain complex policy terms or claims procedures.
• Customer Support: Providing direct access to online chat, FAQs, or contact information for customer service.
• Urgent Action: Connecting policyholders directly to urgent actions necessary to keep the policyholder in compliance such as a pending cancellation.
• Consent & Preferences: Have preference mechanisms to opt into future digital delivery.

By strategically integrating digital elements with printed materials, insurers can combine the best of both worlds: the tangible reliability and regulatory compliance of print with the dynamic accessibility and efficiency of digital platforms. This blended approach ensures that policyholders receive crucial information in formats that are both legally compliant and user-friendly, ultimately improving the overall customer experience and strengthening the policyholder-insurer relationship.

Bottom Line - Making "Digital First" Work in Insurance

A true "digital first" approach doesn’t mean going digital-only. Instead, it means using digital tools to make processes easier while keeping traditional options available where they’re still valuable. Here’s how insurance companies can strike the right balance:

1. Combine Channels: Use both print and digital to create a seamless policyholder experience. For example, send printed welcome kits with QR codes that link to interactive online coverage explanations.
2. Stay Consistent: Ensure your branding and messaging are consistent across all touchpoints, including mobile apps and mailed letters.
3. Prioritize Compliance: Ensure all communications meet regulatory requirements, whether they’re digital or physical.
4. Adapt with Data: Use analytics to understand how policyholders interact with your communications and adjust your strategy accordingly.
5. Encourage Digital Adoption: Promote digital tools for convenience, but don’t force customers to abandon traditional methods if they prefer them.

Want to learn more about policyholder communication?

Join me, Nick Lamparelli, and Miguel Edwards for: Transforming Policyholder Communication: The Policyholder's Journey. 

In this LinkedIn LIVE webinar, we will discuss the transformation in policyholder communications. 

Exploring the Policyholder Journey

- Define the concept of the policyholder journey.

- Identify key touchpoints in the journey: onboarding, renewals, claims, and customer service.

Modernizing Communication Strategies

- Discuss how insurers can shift from workflows to customer journeys.

- Highlight tools and technologies driving transformation (AI, machine learning, integrated platforms).

- Showcase examples of successful personalized communication strategies.

The Role of Empathy and Personalization

- Explain the importance of empathy in building stronger relationships.

- Practical tips for embedding empathy into communication at every touchpoint.

The webinar will be held September 10th at 3pm ET/ 12pm PT. REGISTER, COMMENT, WATCH & FOLLOW HERE