Playing Catch-Up with Other Industries

When assessed on cross-industry customer experience scores, the insurance industry is placed third behind retail (consumer products) and banking. Thus, while insurance is performing better than average, increased customer engagement efforts may lead to parity with front runners such as retail. Within financial services, too, insurance trails banking across various parameters (overall customer experience, customer satisfaction, and being proactive). Thus, insurers must adopt emerging technology quickly to leverage its customer-experience-enhancing benefits.

Playing Catch-Up with Other Industries

Digital to Break Insurance Limitations

Customers across all segments now accept digital communication channels, leveling the playing field with conventional channels. New digital technologies enable innovative value-added services that increase customer touchpoints and benefit the insurers’ financial metrics. Customers, too, said they were willing to receive proactive, personalized insurance offerings and proactive services were found to strongly correlate to positive customer experience.

Digital to Break Insurance Limitations

New Challenges Ahead

Multinational technology organizations such as Google, Amazon, Facebook, Apple, and Alibaba have been eyeing the financial services sector and are taking steps to establish a presence. Globally, 29.5% of customers said they would consider buying at least one insurance product from a BigTech firm if such offerings were available. Gen Y and tech-savvy segments appear most inclined to switch loyalties because they cite lower positive experiences and are more open to purchasing insurance products from BigTech firms.

New Challenges Ahead