$470 Billion in Premium At Risk: How to Get Your Slice
August 11, 2015 12:00 AM
How far and fast should insurers transition toward being customer centric? As far and fast as possible, according to Accenture, as $470 billion in premium is up for grabs due to declining customer loyalty and perceived product commoditization.
Accenture found that 21% of consumers believe most carriers are the same in terms of their products and services; 46% said that was a top-three reason for switching providers; and just 27% of consumers have a high estimation of their insurer's trustworthiness, so rebuilding trust is also critical.
What does it take to be a digital transformer?
It takes a holistic approach to transformation that includes lookingbeyond insurance and outside of the enterprise, Accenture says.
Distribution is crucial
Digital is impacting distribution and customer engagement and, according to the rerport, 23% of customers would consider buying insurance from online service providers; 47% want more online interactions with their insurers, and only 15% are satisfied with their providers digital experience.
What role can insurers play in a larger service ecosystem?
Focus on maximizing value for the customer, Accenture says. "The more sophisticated the insurers digital capabilities, the stronger its position will be within the ecosystem."
Actions to reinforce Insurers' roles
Distribution capabilities are crucial, Accenture says. Of the insurers surveyed, 72% plan to form new distribution partnerships. Of consumers who bought a P&C policy in the past six months, 49% did so online, and 41% of them used their mobile devices. In emerging markets, 57% bought online and 69% of them did so with a mobile device.
Products are still important
Expanding product offerings beyond insurance is another opportunity; 61% of insurers are exploring the possibility of offering non-insurance products and services via ecosystems, Accenture says, and 43% of insurers plan to acquire innovators/start-ups to build new digital capabilities, or have already done so.
Acquire new skills
Simpler customer service needs can met digitally, Accenture says, but the bar is rising for the frontline to address more complexcustomer needs. For insurers, building digital capabilities can be challenging, especially for those with legacy infrastructures.
Be more assertive and innovative
Making the most of current business and operating models is no longerenough, Accenture says. The key is developing a digital business strategy that spans the enterprise, transforms the value chain and enables a transition to authentic customer-centricity.