In my previous blog, I shared research that shows a growing customer move to digital channels in insurance. Now I want to look at the threats and opportunities that such a move poses for the industry.

In case any of you doubt the necessity to respond to these changes, consider that recent French research conducted by Accenture showed that insurance customers are more ready than ever to switch insurers. Prime causes for shifting: Expensive pricing (63 percent), unmet needs (44 percent, up 22 percent from 2011), unnecessary guarantees (40 percent). The conclusion? Insurers need to understand their customers better and deliver more relevant, personalized solutions.

Broadly speaking, a similar situation pertains in major markets around the globe.

This growing expectation for personalization is, in fact, fueled by customers’ online experiences. The digital medium provides customers with unparalleled abilities to compare products and services precisely. Customers are thus expecting their insurers to offer them service and pricing that is equivalent to what they can get elsewhere, and they want to able to compare: transparency is another challenge insurers face when it comes to pricing and coverage (8.6 and 8.5 on a scale of 1 to 10 in the same research).

And, because digital channels co-exist with traditional ones, insurers have to ensure that they are consistent across all channels.

Based on these opportunities/threats, would-be Digital Insurers must address four key priorities:

    • Become adept at communicating, selling and providing services across a variety of channels, ensuring that messages are consistent and all the channels have up-to-date information on all customers.
      P&C Insurance The Digital Insurer - Change now to get ahead

      View the PDF.

    • Use analytics and sophisticated segmentation and customer experience tools to become client-centric and hone the ability to personalize your service.
    • Simplify and streamline the back and front offices through digitizing them to enhance the client experience and improve efficiency.
    • Use digital tools and other technology—including models like cloud computing—to improve your ability to execute.

To learn more about the tools to help you prosper in this new environment, read P&C Insurance – The Digital Insurer: Change Now to Get Ahead and Life Insurance – The Digital Insurer: Change Now to Get Ahead (PDFs; opens in a new window).

In the next blog, I’ll look at the nitty-gritty of becoming a Digital Insurer.

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