Although the insurance sector has invested nearly US$28 billion in customer experience, just 49% of customers feel their insurance provider will be responsive to their basic needs, according to the Customer Compass report, which is a survey by EIS, a core and digital platform provider for insurers.
EIS, in partnership with GlobalWebIndex, surveyed 1,057 insurance customers in the US, the UK, France, and Germany to gain insights into their expectations for customer experience. The survey suggested that as insurers pivot their business and operational models to respond to the COVID-19 pandemic, those who will thrive will be the ones who are prepared for digitally enabled customer interactions. Globally, the top three factors for consumers when purchasing insurance were the ability to purchase products and services online (44%), the ability to offer pricing based on individual consumers’ specific needs (42%), and having an easy-to-use mobile app (32%).
EIS said that consumer opinions of insurers’ digital prowess are “astonishingly low.” Just 23% of consumers expected insurers to integrate their experience across mobile, web and in-person channels, and only 19% expected insurers to know them and their preferences following an interaction. That low bar presents an opportunity for digitally savvy insurers to win business by exceeding expectations, EIS said.
“Customer expectations outpacing insurer capabilities is the clarion call from our Customer Compass report,” said Anthony Grosso, head of global marketing at EIS. “Getting user experience and personalisation right across all digital channels is essential for insurers to meet consumers’ expectations for today’s digital lifestyle. However, insurers who can rapidly re-architect their IT infrastructure to simplify the customer journey, create products that better meet lifestyle and life-cycle needs can become the one-stop shop consumers crave. These insurers will build consumer confidence and grow their business within emerging consumer ecosystems.”
Other key findings of the report include:
Opportunity to own the customer life cycle: The study found a 36% gap between consumers who currently use one company for all their insurance needs and those who would be happy to do so. “This is a huge market opportunity being driven by access to new technology and modern pricing models,” EIS said.
Subscription and usage-based insurance: Consumers access more and more services through a subscription business model, and they want to access insurance protection the same way, according to EIS. Sixty-six percent of survey respondents said they didn’t like being tied to annual contracts and preferred to pay monthly, with the option to cancel at any time.
The power of bundling: Open platforms and connected devices enable companies to bundle insurance and non-insurance products. For instance, 55% of survey respondents said they were interested in a housing bundle that included home insurance, financing, essential home repairs, and all home utilities.