Today’s insurance customer is different from her predecessors. She is more empowered and more social, she has higher expectations of her providers and the way she buys products and services is significantly different. Largely because of these changes, customer loyalty has declined and the likelihood of customers switching to another provider is rising.
Accenture’s 2014 Global Consumer Pulse Survey, which interviewed more than 23,000 people, including 6,521 P&C respondents, found that only 30 percent of P&C insurance customers are highly satisfied with their current providers. Thirty percent would consider shopping around for a better deal, and a whopping 39 percent have switched providers in the past 6-12 months.
In this switching economy, the big question is: who will be the winners and who the losers?
As digital technologies continue to evolve, the companies that are most successful at exploiting them are likely to have the advantage. Unfortunately for insurers, it’s those in other industries that have led the way in converting digital innovation into customer insight, mass personalization, hyperscale, interconnectedness, operational efficiency and agility—all the things that define an efficient, customer-centric provider. And a number of these outsiders have already thrown their hat into the insurance ring.
Carriers face a stark reality. They must either embrace digital and customer-centricity, or move out of distribution to focus on a manufacturing role. Maintaining the status quo is no longer an option.