The COVID-19 pandemic has hastened a shift in buyer expectations and behaviors. Data has proven that the pandemic considerably accelerated the shift to e-commerce throughout 2020. Although the preliminary momentum of this pattern has decreased, expectations round comfort could solidify prospects’ digital-first habits. The lasting influence from this shift can have a dramatic impact on the distribution and repair fashions for Personal Lines and Small Commercial insurance coverage carriers for the subsequent a number of years.
The acceleration of digital commerce has not been the one client pattern of notice. 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’d admire recommendation from their insurance coverage supplier on tips on how to store and journey extra sustainably.
In one other instance of shifting wants, a current Accenture survey from Europe revealed that 53% of respondents stated they have been all for medical insurance coverage that might reward them with diminished premiums for collaborating in wholesome life-style actions like working and biking. In Asia-Pacific, Manulife has seen widespread adoption of its app-based behavioural insurance coverage program, which helps prospects deal with ongoing wholesome behaviors to cut back the chance of significant sickness.
To meet these new expectations and see long-term success, insurers have to reinvent their choices and routes to market. Of course, meaning going through plenty of frequent challenges. Many have elementary considerations round disrupting their major distribution channel (unbiased and captive brokers). Many insurers are nonetheless tied to legacy know-how techniques and have been sluggish to embrace digital service fashions. Furthermore, though most have began delivering buyer experience-focused enhancements, to this point, they’re seeing solely restricted outcomes as a result of in addition they haven’t rethought their working fashions.
But I see a good larger alternative for insurers keen to maneuver past merely reinventing their choices. Those that decide to concurrently reimagine their end-to-end buyer expertise will likely be in a greater place to retain their current prospects, acquire referrals, purchase new prospects and enhance their skill 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 all the buyer journey, our analysis reveals that insurers can drive top-line progress (as much as 15% in elevated income) and increase their margins (by decreasing working bills by 10-40%).
In the approaching weeks, I’ll be digging into 4 facets of the shopper expertise the place you can also make modifications that can enable you to drive progress:
- Innovative 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 service 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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