Morning Briefing: Insurers must look ahead not back to meet the needs of customers

Insurers must look ahead not back to meet the needs of customers… Global reinsurer defies difficult conditions to grow revenue… Agents receive certifications for high-net-worth clients…

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Insurers must look ahead not back to meet the needs of customers
While the insurance industry is gaining ground in customer service, a new report calls for insurers to be more forward-thinking.

“It is clear that the current insurance business and customer journey was built for the silent and baby boomer generations, who have adapted to it and are generally content with it, because that’s the way it has always been for them,” noted Denise Garth, Senior Vice President of Strategic Marketing, Industry Relations and Innovation at Majesco, the insurance software provider and consulting firm which has published the report.

Garth added that for younger generations, the needs of customers focuses on new products and services, new channels, and a digital experience.

“Loyalty is now influenced by how well insurers meet their needs and expectations for products, engagement and value, opening the door to new competitors and the potential shift in market leadership over the next 5-10 years as these generations overtake the previous ones,” she said.

The conclusion is that a business model steeped in tradition is rapidly becoming irrelevant to younger consumers who want something new and ignoring it leaves the industry vulnerable to new “culture-savvy” competition.

The report,‘The Rise of the New Insurance Customer: Shifting Views and Expectations…Is Your Business Ready for Them?’ is available on the Majesco website.
 
Global reinsurer defies difficult conditions to grow revenue
Swiss Re has reported strong growth for the first 9 months of 2016. The global reinsurer’s net income was $3 billion with all business units contributing to the profit.

Half of the profit came from the P&C division, life and health contributed $635 million, corporate solutions added $150 million, and life capital contributed $726 million. Most of the gains were attributed to solid underwriting performance.

"We delivered strong earnings in the first nine months, despite a continued difficult environment across the entire industry,” commented Swiss Re Group Chief Executive Officer, Christian Mumenthaler.

“Our results once more demonstrate that our underwriting discipline and our differentiation position us well for long-term success. We continue to focus on profitable growth while also addressing the protection gap in regions where people are still not insured,” he added.

Premiums earned and fee income for the Group rose 9.6 per cent to USD 24.7 billion (vs USD 22.6 billion). 
 
Agents receive certifications for high-net-worth clients
Thirty-three insurance agents and brokers have been awarded certification under the CAPI program for trusted advisors for high-net-worth clients.

The program was established by Chubb Insurance and the Wharton School of the University of Pennsylvania and certification is awarded after 12 months of study which includes modules on custom insurance solutions, building client relationships and selling in the high-net-worth arena.

"Agents who have completed the CAPI program have demonstrated a full understanding of high-net-worth customers, including their financial affairs, family management and philanthropic activities," said Annmarie Camp, Executive Vice President, Sales and Distribution Leader, Chubb Personal Risk Services.

The agents and brokers awarded are from across the states and range from those working in global insurance brokerages to small-town family-run agencies.

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