Why CX matters more than ever—and where insurers are falling short #
Customer experience (CX) has always been centrally important in insurance, but its nature has fundamentally shifted.
As Chris Eberly, Senior Principal at Datos Insights, explained in our webinar, "What we're seeing today is a multichannel reality where customers engage directly with carriers through various digital touchpoints while also still working with those valued agents and customer service reps. In the past, agents and call center reps defined CX. Today, customers interact directly with insurers through multiple digital channels while still relying on those trusted intermediaries. This hybrid reality means insurers must support both direct and agent-led experiences equally well.
However, many carriers fall short. The challenge lies in outdated batch-based processing, lack of real-time data access, and systems not designed for digital-first engagement. In the webinar, Chris Eberly referenced a recent survey of 250 producers revealing that agents increasingly support multiple lines of business—life, annuity, and P&C. This shift makes a unified, holistic view of the customer essential. Without the right tools and systems, both agents and clients face disjointed, inefficient experiences.
You can’t simplify CX without solving data complexity first #
Improving customer experience starts with addressing one of the biggest obstacles in insurance: data complexity. Chris Eberly shared a striking example: "In one organization I worked with, we identified over 35,000 different data attributes just in the life business."
This is because insurance is inherently complex, but also because legacy systems and decades of product layering have created overlapping, inconsistent data structures. In some cases, a single data attribute is replicated 10 to 18 times across systems.
The result is fragmented, inaccessible data. Business users struggle to find what they need, which leads to shadow systems and workarounds. As Eberly noted, "Data modernization is equally crucial as system modernization, but it often feels like a harder challenge because it requires the whole company coming together around data and being committed to increasing its value."
Without a clean, unified data foundation, carriers can’t deliver real-time transactions, enable intelligent automation, or personalize experiences in meaningful ways. Solving the data problem isn’t optional—it’s the foundation for modern CX.
Why is having a single source of truth for data so crucial for carriers, and what are the main challenges associated with it? #
A single source of truth is essential for analytics, AI, and efficient service. But it remains elusive for many insurers. Legacy platforms create data silos, and multiple generations of products cause data to be transformed and stored inconsistently. Determining which source is authoritative at any moment becomes a challenge.
Traditional approaches to centralizing all data often backfire, resulting in rigid structures that restrict access. Carriers must instead focus on data fabrics, governance models that support usability, and democratized access. As long as CX platforms rely on outdated or conflicting data, any improvements will be short-lived.
How can an omnichannel approach solve CX challenges for clients, agents, and employees? #
True omnichannel experiences require more than channel availability. They demand consistent, connected service across every touchpoint. Agents and customer service representatives need visibility into all prior interactions—whether through digital self-service, a call center, or an in-person meeting.
As discussed in the webinar, agents should be able to see even incomplete online transactions so they can help clients pick up where they left off. "Equally as important is for the servicing folks within the carriers to be able to see all the interactions—even down to the fact that a customer went out on a site and didn't complete a transaction. They should be able to see what transaction they attempted and how it can be completed so that they have an understanding right in front of them."
This level of service requires modern PAS platforms with real-time APIs, common data services, and unified interaction histories. Only then can the entire ecosystem—clients, agents, and employees—operate efficiently and deliver a coherent experience.
What are the latest advancements in policy administration system technology that can help insurers enhance customer experience? #
Today’s most impactful PAS advancements focus on modularity, API-first design, microservices, and event-driven architecture. Modern PAS solutions support real-time data flow, allowing changes to propagate instantly across systems without replication. This is critical for delivering smooth, responsive experiences.
Carriers are also embracing cross-system product bundling, intelligent workflows, advanced analytics, and increasingly, agentic AI. These technologies reduce manual intervention, accelerate underwriting and claims, and enable dynamic, personalized engagement. Ultimately, the new generation of PAS empowers insurers to evolve with customer expectations—not just react to them.
Conclusion #
Insurers that treat digital transformation as a front-end exercise will continue to struggle. True CX gains come from rethinking the core—modernizing policy admin systems, untangling data complexity, and embracing omnichannel strategies built on real-time, API-driven infrastructure.
Customer expectations are only rising. The carriers that succeed will be those who can deliver seamless, data-driven, omnichannel experiences by aligning the right technology with a clear, execution-focused strategy.
