A third of insurance business might be generated via digital channels in the next five years
Consumers are increasingly demanding more personalized experiences, seamlessly delivered via multiple channels with instantaneous responses in innovative ways. This shift is driving an outside-in transformation of insurance firms. While it is unlocking new opportunities to digitally engage their customers, insurers are struggling to adapt.
The Efma and Capgemini World Insurance Report 2014 (WIR) assesses the digital capabilities of more than 250 insurers in 14 countries. According to the report, a staggering one-third of insurance business might be generated via digital channels in the next five years. The report draws a strong correlation between digital maturity and profitability. However, the report cites that digital maturity of the insurance industry is relatively low. While insurers are striving to enhance customer experience, the year-on-year improvement in ratings has been slow.
The 2014 WIR also featured Capgemini’s exclusive Customer Experience Index. With responses from over 15,500 global customers, the index exposed an increasing gap between insurers who seek to provide an improved customer experience and those that are already leveraging digital offers to do so.
The reality of Social Media and Insurance
With its increasing importance, social media still remains an opportunity to be unlocked for a large number of insurers. Digitally mature customers proactively seek advice, compare pricing, and claim experiences, all in pursuit of the best deal. Existing customers continue to share their experiences and drive conversations. These conversations cut across diverse channels, geographies, are happening at lightning-fast pace, or over the course of months. And yet, insurers often find it difficult to influence these conversations or accurately quantify the business impact of social media. This consequently arrests their ability to offer a seamless multi-channel experience.
For insurers to be successful, they must provide customers and intermediaries with an All Channel Experience—similar to leading retailers and other digitally-adaptive companies—to meet each customer on her terms. They can’t adopt retailers’ All Channel Experience techniques indiscriminately.
The next step therefore is to consider designing an All Channel Experience framework that focuses on putting customers at the heart of your business. Consider all the necessary individual elements, strategies, and tactics that need to be integrated to create a holistic experience for both end-customers and insurers.
Talk to us on how your organization is unlocking the digital, all-channel opportunity.