In property and casualty insurance, customer communication has always mattered — but this year, it’s becoming a top-line priority. More than 70% of insurance CEOs say they’re focused on customer experience in 2025. Why now?
Because the gap is growing. Policyholders demand modern, seamless interactions. They expect them to mirror their experiences in retail, banking, and tech. But insurers haven’t modernized as quickly as other industries. Many still run on legacy systems. And those systems weren’t built for this level of personalization or speed. So, the gap keeps growing. And it’s driving P&C insurance CEOs to prioritize communication modernization as a strategic imperative. Because if they don’t, policyholders will look elsewhere.
Legacy Systems Are Draining Your Resources
Keeping legacy communication systems up and running is expensive — not just in dollars, but in lost opportunity. On average, 70% of IT budgets are still going toward maintenance rather than innovation. That’s time and money that could be spent improving speed, accuracy, or customer experience.
What’s more, fragmented tools slow everything down. They introduce manual steps, increase the risk of errors, and make it hard to adapt to new regulations or business needs. Meanwhile, agile InsurTech competitors are moving quickly, offering more flexibility and faster service. Legacy systems don’t just hold you back; they let others pass you by.
Customers Expect More; And They Won’t Wait
Today’s policyholders aren’t just comparing insurers to each other. They’re comparing you to Amazon, Apple, and their favorite app. They expect:
- Messages that reflect their unique needs and preferences.
- Seamless experiences across devices and channels.
- Timely updates, especially during claims.
- Conversations, not just transactions.
A one-size-fits-all, one-way approach no longer works. Customers want interactions that feel human, not automated. And if they don’t get it, they may take their business elsewhere.
Modernization Pays for Itself
Improving customer communication isn’t just about better service, it also delivers real financial returns.
Insurers that invest in digital-first strategies see big improvements. Claims expenses go down. Error rates drop. Customer experience scores go up. And processes that once took days now take minutes. One carrier even cut application completion time by two-thirds after modernizing their communication workflows.
Modern platforms free your teams from repetitive tasks and reduce reliance on IT. That means fewer delays, better compliance, and more time focused on strategic goals.
You Don’t Need to Rip and Replace
For many insurers, the idea of modernization triggers concerns about cost, risk, and business disruption. But today’s platforms are built to work with what you already have.
Instead of replacing core systems, you can connect modern communication tools directly to your policy admin system, claims platform, and customer portals. This makes it possible to:
- Launch new digital applications 75% faster than traditional timelines.
- Empower business users to create and update content without waiting on IT.
- Improve data accuracy and move toward straight-through processing.
- Deliver more personalized, responsive customer experiences.
You can start small and scale gradually. All without pausing operations or taking on massive projects all at once.
Where to Focus First
Not sure where to begin? These five questions can help you find the right starting point:
- Are our communications interactive and personalized, or one-way and generic?
- How much of our budget goes to maintaining outdated tools?
- Are we using digital channels to make the claims process easier and faster?
- Can business users manage content updates without IT support?
- Do our communication systems integrate easily with our core platforms?
The answers can reveal quick wins and longer-term opportunities.
Close the Gap with Elixir
P&C insurers that embrace communication modernization now will see dual benefits. Not only will they close the growing expectations gap, but they’ll also establish a sustainable competitive advantage through enhanced customer experiences and operational efficiency.
At Elixir, we help P&C insurers modernize communication without starting from scratch. Our cloud-based solution integrates with your existing systems and empowers business users to deliver faster, more personalized experiences.
Download our solutions brief, “Modernize Your P&C Communications: Drive Claims Efficiency and Customer Satisfaction,” to see how other insurers are closing the gap — and how you can too.
