Accenture conducted a consumer survey about multichannel distribution in insurance, and the results indicate challenges and opportunities for the industry.
The challenges? Customer retention will be a major test for insurers in the years ahead.
The opportunities? For insurers that are able to offer a relevant and appealing value proposition, the potential to attract disillusioned customers has never been greater.
Customers on the move
In this week’s chart, I’ll focus on the Accenture Multichannel Distribution Insurance Consumer Survey. We surveyed 3,555 consumers across six countries—France, Germany, Italy, Spain, United Kingdom and Brazil—about consumer attitudes and behaviors in purchasing insurance.
Figure 1 shows the proportion of consumers who plan to renew or purchase insurance from their current providers. The results show that while one out of two consumers intend to buy insurance from their existing provider, only six percent have made up their minds to switch.
However, that leaves a massive 47 percent of consumers who are shopping around.
Other points of interest:
- Loyalty is highest in Italy and France, where almost two out of three customers will buy from their current provider.
- Loyalty is lowest in the United Kingdom and Germany. In fact, in Germany, 15 percent of consumers have already decided to switch insurance providers.
Other findings from the survey:
- Only 34 percent of consumers are satisfied with their life insurance company.
- No more than 20 percent of respondents say they will definitely buy from their current insurance provider.
- Only 25 percent of consumers would recommend their current insurer to others.
- During the six to 12 months prior to the survey, 25 percent of customers changed their mix of providers.
Customer retention is, and will continue to be, a key challenge for insurers. However, savvy insurers will capitalize on these opportunities to attract disillusioned customers.
Join me next week as I talk about the channels that consumers are using to purchase insurance.