Capgemini and Efma introduce the new Customer Experience Index in this sixth edition of the World Insurance Report 2013 with data from over 16,500 customers. This year’s report explores how insurers must enhance multi-distribution and customer experience to improve retention. While mobile and social media channels are gaining traction, challenges remain for insurers to provide better customer experiences and drive operational efficiencies.
Press Release: 70% of insurance customers’ loyalty at risk as retention challenges escalate; 50% of insurers look to mobile and/or social media in next two years to strengthen customer experience.
The WIR 2013 is based on 16,500 customer surveys, research data from 41 markets, and interviews with 114 insurance executives.
Improvements in Core Underwriting Performance
- Catastrophic losses were high in 2011, and the nature of events highlighted the imperative for non-life insurers to model more accurately the potential for inter-related risks, such as the tsunami triggered by an earthquake in Japan.
- In everyday operations, non-life insurers have continued to focus on improving the core drivers of underwriting performance, and many have captured benefits from enhancing productivity and reducing distribution costs.
- Agents and brokers are still the number one distribution channel but customer acquisition through this channel is expensive.
Room to Deliver More Positive Customer Experiences
- Our research confirms customer satisfaction alone may be a deceptive gauge since the availability of products/services is not the only driver of satisfaction.
- In markets where satisfaction is high, customers are not necessarily pleased with their insurer relationships. Globally, 70% of insurance customers report negative or neutral experiences.
- To address overall customer experience, insurers need extensive enhancements in sales and service based on a complete view of customers and their perceptions, expectations, and values.
The Mobile Channel is Key to Multi-Distribution Strategies
- With more than 50% of insurers adding mobile and social media over the next two years, insurers have an opportunity to improve customer experiences.
- The top five key drivers for insurers to invest in the mobile channel are: anytime/anywhere device demands; cross-selling/up-selling opportunities; increased smartphone adoption; customer service costs; and keeping up with the competition.
- Integration of social media strategies with traditional CRM is paving the way for new ‘social CRM,’ enabling higher customer satisfaction rates for insurers.
Read the Full Report