The iconic image of an insurance salesman at the kitchen table isn’t just warm and fuzzy—it hints at the idea that insurance consumers trust their providers. However, since the economic downturn, insurance companies have lost consumer trust and loyalty. What happened?
What happened to trust?
Accenture looked at the qualities that insurers need to achieve a sustainable competitive advantage and profitable growth. We found that innovation, responsiveness and agility are extremely important. But then there’s the issue of customer trust.
We learned that insurers have to deal with customers whose trust and loyalty are low—and declining.
In fact, in the Accenture Global Consumer Behavior study, only 40 percent of survey participants reported that they trust the insurance industry to do what is right—placing insurance the lowest-ranked of 13 business sectors. Further, loyalty toward insurers is a mere 25 percent.
In a follow-up question, consumers indicated that they’re much more willing to consider switching providers:
- 25 percent had switched insurers in the 12 months prior to the study.
- 20 percent expect to switch insurers in the next six to 12 months.
Profitable growth in the new reality
These are sobering numbers, but they’re also an important wake-up call. To learn more about how to rebuild customer trust, download Profitable Growth in the New Reality.