What is Interaction Experience Management (IXM) For Insurance?

By Eileen Potter, VP of Insurance Marketing at Smart Communications 

Today’s customers demand more than just efficient policy management and claims processing—they seek a seamless, personalized experience at every touchpoint. As insurers strive to meet these new standards, the focus is shifting towards creating interactions that are easy to understand and enable prospects and policyholders to conduct business with them at their convenience.  This is where Interaction Experience Management (IXM) for insurance comes into play.

IXM represents a transformative approach to managing customer interactions, leveraging advanced technologies to turn traditional, often cumbersome processes into streamlined, engaging conversations. For insurance companies, IXM is not just about enhancing communication; it's about redefining how they connect with customers throughout the entire lifecycle. 

Watch the video, ‘IXM and Insurance’ to hear more about this topic from Aspire’s Senior Research Analyst, Will Morgan.  

What is IXM?

Interaction Experience Management (IXM) is an emerging segment of technology that focuses on optimizing customer interactions across various channels. Unlike traditional methods, which often rely on static, paper-based forms or fragmented digital solutions, IXM enables dynamic, two-way communications. This approach ensures that customer data collection and management are both efficient and personalized, driving a more cohesive customer experience. 

Industry experts, including Aspire CCS and IDC, highlight that while many insurers have made strides in customer communications, they often overlook the critical need to modernize their forms processes. The result? Operational inefficiencies, missed opportunities for personalization, and a disjointed customer experience. Our own Benchmark study found that 67% of insurance customers are likely to end an interactions with a company if the way they collect information is too difficult — up from 54% in 2023. 

Why IXM Matters Now  

The insurance sector is witnessing a significant shift in customer expectations. Customers now expect interactions to be as seamless and efficient as those they experience with leading digital platforms like Netflix and Amazon. They want fast, personalized, and convenient interactions across their preferred channels. 

Our Benchmark research also indicated that 83% of customers value a mobile or web-friendly experience when completing forms. This shift underscores the need for insurers to move beyond outdated, manual processes and embrace technologies that facilitate smooth, interactive experiences.  

The unfortunate reality is that many insurers still gather and store customer data on multiple disconnected point solutions, forcing them to navigate the complexity of regulations across a web of different business units, systems, and channels. This increases compliance costs with regulatory frameworks like CPRA, GDPR, and other consumer-focused data handling and reporting regulations. 

Furthermore, in traditional forms processing, first-party data collection offers only low-quality data that businesses cannot easily share across silos or leverage to inform larger initiatives. Finally, many insurers still rely on paper-based HTML or fillable PDF files. That inefficient complexity comes at a cost: licensing fees, skyrocketing technical debt and mismanaged time, rising employee frustration, and—as we’ve already noted—a slow and muddled customer experience. 

By leveraging cloud-based IXM solutions like SmartIQ, Insurers can transform and streamline critical touchpoints along the customer journey, including:

Benefits of IXM For Insurance Organizations

Enhanced Customer Engagement: IXM allows insurers to integrate various interactions channels, enabling customers to engage through their preferred platforms and ensuring a more connected and engaging experience. 

Personalized Experiences: With IXM, insurers can offer tailored, digital-first data collection experiences. This level of personalization helps meet customer needs more precisely, enhancing overall satisfaction. 

Relevant, High-Quality Data: IXM helps in collecting and managing data effectively. Structured, high-quality data facilitates informed decision-making and improves the accuracy of customer interactions. This is crucial, as poor-quality data can lead to compliance issues and hinder business operations. 

Cost Efficiency: By automating data collection processes and providing intuitive self-service options, IXM reduces the reliance on costly customer support and call centers, leading to significant cost savings.