The COVID-19 pandemic has hastened a shift in buyer expectations and behaviors. Knowledge has proven that the pandemic considerably accelerated the shift to e-commerce during 2020. Though the preliminary momentum of this development has decreased, expectations around convenience might solidify prospects’ digital-first habits. The lasting affect from this shift may have a dramatic impact on the distribution and repair fashions for Private Traces and Small Industrial insurance coverage carriers for the following a number of years.
The acceleration of digital commerce has not been the one shopper development of word. Our 2021 Accenture Global Insurance Consumer Study studies that millennial and youthful customers (ages 18-34) need digital choices that assist them make safer, more healthy and extra sustainable selections. For instance, 67% of millennials and zoomers reported that they might respect recommendation from their insurance coverage supplier on learn how to store and journey extra sustainably.
In one other instance of shifting wants, a latest Accenture survey from Europe revealed that 53% of respondents mentioned they had been thinking about medical insurance coverage that may reward them with decreased premiums for taking part in wholesome way of life actions like operating and biking. In Asia-Pacific, Manulife has seen widespread adoption of its app-based behavioural insurance coverage program, which helps prospects concentrate on ongoing wholesome behaviors to scale back the danger of great sickness.
To fulfill these new expectations and see long-term success, insurers have to reinvent their choices and routes to market. After all, meaning going through a lot of widespread challenges. Many have elementary issues round disrupting their fundamental distribution channel (unbiased and captive brokers). Many insurers are nonetheless tied to legacy know-how methods and have been sluggish to embrace digital service fashions. Moreover, though most have began delivering buyer experience-focused enhancements, thus far, they’re seeing solely restricted outcomes as a result of additionally they haven’t rethought their working fashions.
However I see a fair greater alternative for insurers prepared to maneuver past merely reinventing their choices. People who decide to concurrently reimagine their end-to-end buyer expertise might be in a greater place to retain their current prospects, achieve referrals, purchase new prospects and enhance their capability to cross-sell merchandise that meet prospects’ distinctive wants.
From reinvented product choices to enhancements in advertising and marketing, digital gross sales channels and customer support, throughout the complete buyer journey, our analysis reveals that insurers can drive top-line development (as much as 15% in elevated income) and broaden their margins (by lowering working bills by 10-40%).
Within the coming weeks, I’ll be digging into 4 features of the shopper expertise the place you can also make modifications that can provide help to drive development:
- Progressive new insurance coverage merchandise that meet evolving buyer wants and expectations.
- An insurance coverage advertising and marketing transformation that delivers extra significant experiences.
- Digital channels that assist an omnichannel method.
- Customer support that re-envisions what it means to serve prospects.
And I’ll be recommending two key know-how enablers that will help you on the journey.
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