IS THE CUSTOMER ALWAYS RIGHT ON SELF-SERVICE?

As insurers have gradually embraced the multi-channel delivery and support model, they also have recognized that alternative channels of distribution and support do not replace traditional channels; they supplement them. Nowhere is this more applicable than with online self-service, which, while promising significant efficiencies and cost-savings, should not be viewed as something that will replace call centers or agents. How can carriers achieve the benefits of self-service without alienating critical constituents such as policyholders and agents?

At The Hartford, reports Jim Devoe, director, strategy—e-business solutions unit, "We do see increasing levels of acceptance of, and in some cases, demand for, self-service options." Still, "our policyholder service centers have been the centerpiece of our service strategy for many years. Self-service is a component of this strategy, complementing but not undercutting our core service center capabilities. We'll continue to fold-in self-service options as both our technology and our customers are ready."

A relatively aggressive approach to implementing self-service has been taken by Humana (Louisville), according to Bruce Goodman, chief services and information officer. "Our results to date clearly show that our stakeholders have embraced self-service," he reports. "Currently just over 60 percent of our inbound contacts with stakeholders are performed via self-service—without ever speaking to a person. That compares to no self-service just three years ago. Because we treat privacy as a paramount concern, our stakeholders—be they members, employers, physicians, agents/brokers or even our own associates—have shown they are comfortable providing personal information when self-servicing."

But not every carrier has such a clear-cut mission. "It depends on the demographics of your customer base," advises Stephen Bell, director of product Marketing, E.piphany, Inc. (San Mateo, CA). "Increasingly Web-savvy customers expect effective Web self-service, in the same way they expect to readily obtain cash from that now-ubiquitous self-service technology, the ATM. These customers want to find what they need quickly and easily on the Web and avoid the often-painful exercise of long waits in phone queues and multiple transfers, as well as the 'black hole' of e-mail replies."

However, Bell notes, "On the other hand, an older customer base is more likely to be conditioned to pick up the phone and wait for a live agent, in the same way they would prefer to stand in line for a bank teller rather than use an ATM."

Additional analysis of key success factors in online self-service will appear in the May 2003 issue of Insurance & Technology, coming soon to www.insurancetech.com

Peggy Bresnick Kendler has been a writer for 30 years. She has worked as an editor, publicist and school district technology coordinator. During the past decade, Bresnick Kendler has worked for UBM TechWeb on special financialservices technology-centered ... View Full Bio