Human-Centered, Mission-Driven: What Insurers Can Learn from the Hospitality Field

By Ralph Mucerino, Principal at RPM Strategy and Pravi and John Bruce Tracey, Ph.D.,  Kenneth and Marjorie Blanchard Professor of Human Resource Management at Cornell University

In the face of the devastating Los Angeles-area wildfires and other increasingly severe and frequent catastrophic events, it’s critical for insurers to look at their client relationships in an innovative way. When complex claims arise, emotions are high, and the insurance companies are under pressure from several directions. A new empathetic mindset is required. This mindset will improve the insurance industry’s ability to handle the extremely complex situations as they unfold in the wake of such disasters. This mindset also can provide both strategic differentiation and a path to growth. 

Hospitality is a deeply human characteristic. Whether it's welcoming a guest into your home, holding the door for a stranger, or simply ensuring someone feels comfortable in your presence, we have all experienced and offered hospitality in its basic forms. Importantly, the essence of the Hospitality Mindset is not tied to any specific industry—it’s a human quality centered on care, empathy, and connection.

As humans, we are wired to value experiences that make us feel recognized and valued. This is what the Hospitality Mindset aims to imbue in professional and commercial contexts. The Ritz-Carlton, a gold standard in hospitality, has built its reputation by delivering exceptional customer service, anticipating needs, and creating personalized, memorable experiences. But what if this philosophy extended beyond luxury hotels into industries in which care, empathy, and connections might seem less intuitive, such as insurance?

Insurance professionals, including underwriters, claims adjusters, and brokers in property and casualty (P&C) regularly juggle complex relationships with clients. By adopting hospitality principles, they can strengthen these relationships and improve outcomes for all parties involved. At the heart of these relationships is a shared goal: trust and long-term engagement. 

What We Know About the Hospitality Mindset

Years of study into service-intensive settings reveal that the Hospitality Mindset reflects a unique combination of the following dimensions: 

1. Empathy First: Effectively reading the room, practicing active listening, and being sensitive to people’s emotions and perspectives in the moment.
2. Personalization: Treating each interaction as unique and catering to individual preferences.
3. Purposefully Proactive Service: Identifying needs before they are articulated.
4. Meaningful Communication: Building trust through candor, clarity, transparency, and timeliness.
5. Memorable Experiences: The sum total of the first four dimensions creates lasting impressions that translate into memorable experiences. 

For example, claims—and especially complex claims as we will see in the wake of disasters—are often the most stressful part of the insurance experience since they can quickly become adversarial. By embedding empathy and active communication into the claims process, insurers can transform a difficult situation into one where customers feel valued and supported. This means clear communication, setting realistic expectations, and addressing concerns with empathy and transparency.

Hospitality Mindset: Building Long-Term Relationships

In hospitality, loyalty programs and personalized care cultivate long-term relationships. While commercial insurance may not lend itself to traditional loyalty programs, a focus on ease of doing business, competitive pricing, and attentive service can achieve similar outcomes.

An insurer that takes the time to understand a client's business risks and proactively addresses them can foster trust and loyalty. Additionally, simplifying processes and communicating clearly can make interactions less transactional and more relationship driven. It is equally important to understand the brokers’ strategic direction to be a stable “go-to” market.

Why Hospitality Matters to Insurance

Adopting the Hospitality Mindset delivers benefits that extend beyond customer satisfaction:

1. Enhanced Reputation: Just as the Ritz-Carlton is synonymous with luxury service, an insurer known for exceptional customer care sets itself apart in a competitive market. An enhanced reputation is a clear and proven way to grow the business.
2. Increased Retention: Customers and brokers are more likely to stay loyal to insurers who treat them with respect, empathy, and attentiveness.
3. Employee Empowerment: Hospitality-focused training equips employees to make decisions that enhance client satisfaction, fostering a culture of accountability and pride. This can also lead to increased employee retention.
4. Operational Efficiency: Application of the Hospitality Mindset can reduce re-work and improve conflict resolution capabilities, saving time and resources. 

Conclusion

The Hospitality Mindset isn't just for hotels. It is a framework for creating meaningful, human-centered experiences in any industry. In insurance, where complexity and stress often define the customer journey, adopting the Hospitality Mindset can lead to transformative changes in customer relationships, employee culture, and overall business success. By applying these principles, insurance professionals can elevate their business, build trust, and inspire loyalty in an industry often seen as transactional.

This is a prime opportunity to redefine what it means to be in the business of insurance. Are you ready to lead the way?

Authors

Ralph Mucerino has decades of experience at senior levels of the international insurance community. Ralph is currently a principal of both RPM Strategy and Pravi as well as a member of the Executive Council of the International Insurance Society

John Bruce Tracey, Ph.D., is the Kenneth and Marjorie Blanchard Professor of Human Resource Management at Cornell University, the associate editor of Cornell Hospitality Quarterly and the associate editor of the Journal of Hospitality and Tourism Research.