Life Insurance: Battling Customer Indifference, Improving Customer SatisfactionPosted on August 16, 2011 by Michael Costonis
It’s often said that life insurance is sold, not bought. After a sale, customer engagement has been limited, at best—in some cases, customers didn’t have any contact with their life insurance provider until a death in the family.
That’s all changing, quickly. Customers today expect more interaction and more personalized service. Insurers that are able to respond rapidly to higher customer expectations will establish more robust customer relationships and drive growth.
Accenture Global Consumer Survey
A recent Accenture survey of more than 1,000 insurance consumers studied attitudes and behavior toward life insurance. The survey indicates that the majority of customers are content with the service they receive. However, satisfaction levels have declined—and customers are more able and willing than ever to switch providers.
The study also showed that:
- Consumer knowledge and involvement with life insurance is limited.
- The most important reasons for switching providers are recommendations, value and tailored service.
- Generally, consumer satisfaction, loyalty, advocacy and intention to purchase are lower for insurance than for other services.
Steps toward improving customer engagement
Certainly, the study illuminates some challenges. Yet, it also shows that there is a major opportunity for life insurers to get things right. In addition to traditional markets, there are tremendous opportunities in emerging markets such as India and China.
At Accenture, we believe that there are three steps that insurers can take to engage customers:
- Listen to the customer, making use of analytics and social media.
- Use customer profiling to create and deliver the right product mix.
- Get the right systems in place to enable agility.
Last fall, my colleague Kevin Kraft posted about the challenge and opportunities for life insurers. Learn more about affordable life insurance for the middle market.