How insurers can handle customer inquiries more efficiently and reduce costs 

Today’s customers expect fast, consistent, and competent answers, regardless of whether they reach out by email, phone, or messaging services such as WhatsApp. For insurers, this expectation now directly impacts cost, efficiency, and competitiveness. 

How critical customer service has become is reflected in Deloitte research, which shows that 87% of respondents consider customer service a decisive or very important factor when choosing an insurer. 

At the same time, insurers are under significant pressure. Competition is increasing, operating costs continue to rise, and regulatory requirements remain high. The point where customer expectations meet operational reality is where friction most often occurs, in customer service and claims management. 

How inefficient customer inquiries drive up costs 

Customer support and claims management are among the largest, yet often underestimated, cost drivers in the insurance business. Long processing times are a central pain point, both for customers and for insurers. Studies show that around 30% of policyholders are dissatisfied with claims handling, often due to slow processes. At the same time, up to 60% of complaints can be traced back to inefficient or delayed claims and support workflows. 

Customers primarily expect a fast response after reporting a claim. In one survey, 60% of respondents stated that a quick initial response is among their top three expectations. When this expectation is not met, it has a direct impact on loyalty and revenue. Efficiency in customer service is therefore not just a cost issue, but a key lever for retention and long-term competitiveness. 

Poor claims experiences demonstrably increase churn and lead to direct revenue losses, not only through cancellations, but also through rising service and processing costs. Recent analyses highlight the financial potential of more efficient processes. McKinsey notes that modernized claims operations can reduce loss of adjustment expenses by 25 to 30 %, while compensation costs can be lowered by 3 to 5 percentage points. 

High costs caused by inefficient processes and silos 

Many insurers continue to operate fragmented system landscapes. Legacy applications that are outdated and poorly integrated result in data silos and repeated manual data entry. Industry analyses show that insurers spend more than 70% of their IT budgets on maintaining legacy systems alone. These are resources that are then unavailable for automation and modern workflows. 

The consequences are delays, higher error rates, and unnecessary manual effort. This becomes particularly problematic when customer service, claims, underwriting, and IT teams do not share a common data foundation. What frustrates employees directly translates into longer processing times and higher costs. 

Why connected omnichannel experiences drive efficiency

This is where modern CX platforms play an increasingly important role, by connecting interactions, data, and workflows across channels into a single operational view. 

Many insurers have introduced omnichannel communication and now offer multiple ways for customers to get in touch. However, efficiency is not driven by the number of channels, but by how well they are connected. Effective omnichannel strategies ensure that all interactions are consolidated into a single customer history. Customers can continue their inquiries across channels without having to repeat information. For service teams, this creates full context and visibility, the foundation for faster resolution, fewer follow-up questions, and lower cost per inquiry. 

Automation reduces workload when applied correctly 

A large share of customer inquiries in insurance is repetitive, such as status requests, document submissions, or simple policy questions. This is where significant efficiency potential lies. Automation enables inquiries to be classified, routed, and in some cases resolved automatically. Claims files can be prefilled, status updates sent proactively, and follow-up questions reduced. This relieves employees from routine tasks and frees up capacity for complex cases that require expertise and personal judgment. 

Importantly, automation does not replace people. It supports them by enabling faster, better-informed decisions and allowing them to focus on value-adding work. 

Clear processes reduce friction 

Inefficiency rarely stems from a lack of effort, but from unclear ownership. When inquiries are passed between service, claims, and specialist teams, processing times increase and errors become more likely. Efficient insurers therefore rely on clear processes. Every inquiry has a defined owner, standardized handovers, and transparent escalation paths. In addition, inquiries are prioritized based on urgency and complexity, since not every case requires the same level of effort or response time. 

Breaking silos with a unified view of feedback 

One of the most overlooked challenges in customer experience is fragmented feedback data. Insights from surveys, support interactions, social media, and reviews often exist in isolation, preventing a complete understanding of customer needs. 

CX platforms such as Netigate bring these perspectives together. By combining feedback and support data, insurers gain a holistic, cross-channel view of their customers and their expectations. At the same time, role-based access controls and strict data separation ensure that regulatory and data protection requirements are consistently met. 

Turning service conversations into actionable CX insights 

Surveys and NPS scores provide valuable signals about customer experience, but they only capture part of the picture. The most direct and unfiltered feedback is generated every day in customer service, through tickets, emails, chat conversations, and call logs. 

Modern AI-powered analytics make it possible to systematically analyse this unstructured data. Topic clusters, sentiment trends, and temporal patterns become visible, such as seasonal peaks in claims volume or recurring issues within specific product areas. 

When customer service becomes an early warning system 

Rising inquiry volumes, repeated follow-up questions, or similar complaints across different channels are rarely coincidental. They are often early indicators that processes, communication, or digital touchpoints no longer meet customer expectations. 

In insurance, weaknesses typically surface in customer service long before they appear in traditional KPIs or surveys. Organizations that merely process inquiries miss these signals. Those that analyse them systematically gain an early warning system for issues across the entire customer journey, from unclear policy information to error-prone claims processes or digital barriers. 

Efficient handling of customer inquiries therefore goes beyond faster response times. It means treating customer service as a strategic source of insight and a central lever for controlling costs, meeting customer expectations, and building long-term loyalty.