The insurance industry talks a lot these days about being “customer-centric”. Yet very few industry pundits ever take the time to explain what being customer-centric really means.
In our view, real customer-centricity starts with a very basic premise: The insurer provides what the customer wants, rather than what the insurer wants to sell. This sounds elementary, but it isn’t.
Younger customers provide a good example. In North America, many so-called Millenials have put off buying a house or even a car for a variety of reasons, from economic uncertainty to lifestyle choices. The customer-centric insurer sees this as an opportunity, rather than a rejection. Through careful market segmentation, monitoring trends on social media, and listening to the voice of the customer as expressed through market research, call center conversations and other sources, insurers can identify products that suit these changing needs.
Identifying these needs, developing suitable products and bringing them to market, and creating the right distribution strategies are all part of the greater customer-centricity. Rather than “digitizing” the distribution of existing products, the truly customer-centric insurer will use digital to determine how to find and deliver what the customer really wants. As explored in our Digital Innovation Survey, leading insurers understand that they need to expand traditional value chains, or even create new ones, in order to weather disruption. Creating new partnerships, investing in innovative companies or broadening their offerings to include non-insurance products are among these new customer-centric options.
For more information:
- Learn more about our Accenture Digital Innovation Survey 2014, including our interactive data visualization tool.