A recent Accenture survey of motor insurance customers in the United Kingdom highlights some of the major issues in the industry, including challenges with customer loyalty and retention, and pricing strategies.
The UK motor insurance industry is in a state of flux, and to succeed, insurers must adapt to these changes and evolve the way they do business. In particular, UK insurers need:
- Better connectivity, accomplished with new technologies and social media.
- Analytical understanding of their customers, to improve retention strategies and offer more targeted products and services.
- Flexibility and adaptability to respond to the changing landscape.
To achieve these capabilities, insurers should consider six action steps.
- Improve existing retention strategies, especially the development of proactive retention strategies.
- Develop a better understanding of customer price sensitivity and offer target customers better renewal pricing.
- Offer tailored customer propositions and offers, based on customer analytics and segmentation.
- Encourage low-cost, efficient self service to enable improvements in areas where human interaction is important.
- Engage with consumers through new channels, such as social media.
- Shift the focus from brand awareness to brand effectiveness.
To learn more, read UK Motor Insurance: At the Crossroads? Why Business as Usual is Not an Option (pdf; opens in a new window).