A storm is about to hit Australian insurance companies—one that packs the punch of intensifying competition and changing consumer behaviors. But, even though the forecast looks ominous and the implications will be significant, forward-thinking insurers can heed the warning signs now by taking this opportunity to prepare their businesses for the emerging conditions.
Our research suggests that successful Australian insurers will outperform their competition by:
- Developing a deep understanding of their customers. With enhanced insights, insurers can tailor offers, target market messages and implement segmented customer experience strategies that reflect what their customers value.
- Defining their value propositions that are recognized by target audiences. Insurers will need to reinforce their market position from their messaging and product offers to the customer experience.
- Establishing multi-channel capabilities and a digital presence. Industry leaders will be able to support customer transactions across channels. They will also maintain and leverage a digital presence in a deliberate way.
- Aligning their strategies with their operating models. Leading companies will align their model—including core processes, technology and culture—to deliver on their chosen strategy.
- Adapting, evolving and improving. The most successful insurers will build capabilities that will enable them to anticipate and respond to changes more easily than others.
Certainly compared to other mature markets, the Australian insurance industry has enjoyed relatively strong personal lines performance in recent years. And, while a change is in the air, insurers can leverage the solid footing they’ve held to prepare for the forces to come.
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